Business

Govt 'committed to auto industry'

9 October 2009

The South African government remains committed to supporting the country's automotive sector, Deputy Trade and Industry Minister Thandi Tobias-Pokolo said on Thursday.

"The South African government has prioritised the automotive industry as one of the [growth] sectors in our economy, with the expectation that the country should produce more than 1.2-million cars per year by 2020," Tobias-Pokolo told an automotive conference in Port Elizabeth this week.

"But we have all seen the challenges that resulted from the global economic crisis. These must be dealt with by both government and the automotive sector, as they impact negatively on our strategies."

Tobias-Pokolo said "innovative ways" of achieving targets were needed.

"The government has come on board through the motor industry development programme and its successor, the automotive production development programme," she said.

"We also need to shift from production of light vehicles and focus on heavy vehicles, buses and their components."

There was a need to improve on trade agreements, particularly with the European Union and the United States, the minister added.

Sapa



	Volkswagen South Africa's plant in Uitenhage, Eastern Cape is the largest vehicle factory in Africa (Photo: Volkswagen South Africa / MediaClubSouthAfrica.com)