04/17/2024 | Press release | Distributed by Public on 04/18/2024 02:07
The Minister of Trade, Industry and Competition, Minister Ebrahim Patel, has welcomed a new R4 billion investment by Volkswagen South Africa (VWSA) in their assembly plant in Kariega, Eastern Cape. This investment will be used to add a new model to the production line - a brand new SUV built off the Polo platform; and position the facility as the sole manufacturer of the Polo brand globally. The new SUV model is expected to be exported to global markets.
Speaking at the announcement event held at VWSA's facility in Kariega, Minister Patel remarked:
"This investment builds upon a legacy of commitment and exemplifies the success of our industrial policy, fortifying not only the assembly plant but also the livelihoods of about 3 500 individuals directly employed by VWSA. Moreover, this investment has rippled through this part of the Eastern Cape, fostering an ecosystem of prosperity and industrialisation, supporting an estimated 50,000 indirect jobs and livelihoods."
In the last five years, Government has undertaken significant work in order to bolster automotive production in South Africa. Minister Patel highlighted ten actions which have been taken in the Sixth Administration to support the industry:
The automotive industry plays a crucial role in our economy, contributing significantly to GDP and employment. The manufacturing component of the auto industry contributed 2.9% of South Africa's GDP in 2022. With over 115,000 direct employees and an additional 240,000 indirect jobs, the auto industry remains a cornerstone of South Africa's manufacturing sector.
Despite global challenges such as the COVID-19 pandemic and supply chain disruptions, South Africa's automotive industry has continued to grow. Over the past five calendar years, South African OEMs produced 2.7 million vehicles and exported 1.7 million vehicles.
In 2023, a record number of vehicles were exported - 399,594 - marking a milestone in South Africa's industrial resilience and global competitiveness. Notably, in 2023 South Africa exported its 6 millionth vehicle since the start of the democratic era.
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