Download State and Autosector partnership (AIDC)- Dr David

STATE-AUTOMOTIVE
INDUSTRY PARTNERSHIP
Presenter: Dr. David Masondo
Date: 09 June 2016
Presentation Structure
1. Who is the AIDC?
2. AIDC Flagship Projects.
3. Significance of state-&-business partnerships in the sector.
4. Economic Importance of the automotive sector.
5. Challenges facing Gauteng based automotive industry (incl. OEMs).
6. Role of the AIDC.
Who is the AIDC?
• Established in 2001 by Industry & Gov
to support automotive industry.
• The AIDC is an implementation agency
of provincial government
• Approx. 170 staff across multiple sites
• Asset Base approx. R850 mil.
Significance of State-&-Business
partnerships in the sector
• The state needs business to invest in order to create employment and tax base.
INDICATOR
GDP
Employment
Labour Income
Tax and Import
NATIONAL
7% (R218BN)
500 thousands
R83bn
R43bn
GAUTENG
14%
176 thousand
Upstream & Downstream
Linkages in the Sector
UPSTREAM
CORE AUTOMOTIVE
Primary Sector (Raw Materials) Manufacturers
Mining (E.G. Platinum)
OEMs, Component
Manufactures
DOWNSTREAM
Tertiary (sales, after
market etc.)
After market services
(Repairs, auto parts etc.)
Leather
Finance & insurance
Textile
Rubber, Paint, Etc.
Car hire
Source: AIDC’s Tshwane Auto-sector profiling
OEMs Products (Excluding HCV and Bus)
Products from Gauteng based
OEMs
Products from Gauteng based
components Manufacturers
Overhead Systems
Interior trim
parts
Door
handles/panels
Insulation parts
Metal pressing
Cockpits
Tailgate Covers
Door Function
Bin Liners
Sound absorbers
Cockpits
Exhausts
system
Cross Beams
Heat shield
Fuel lines
Engine pulleys
Moulded Rubber
Spring Steels
Injection Moulding
Wiring harness
Radiator
Bolts
Floor mats
Vehicle
Trimming
Bumpers
s
Assembly of Axle
Differential
Seats
HVAC
Air ducts
Protection fenders
Universal Beams
Anti-static garment
Exteriors
Assembly of
front Axles
Polytherine components
Handling Units
Catalytic
converters
Challenges Facing Automotive
Sector in SA
1. Market size,
2. Distance from global market,
3. Logistics costs and infrastructure
4. Skills upgrading/training,
5. Transport cost for labour
6. Components Manufacturing in Tshwane opting for Botswana & Lesotho e.g.
Euro-plasform, ALC &, Pasdec (Brits)
7. Global economic conditions
AIDC’s ROLE
1.
2.
3.
4.
Market share – looking into sub-Saharan Africa.
Own and operate the Automotive Supplier Park (ASP).
Production Efficiency Program (Lean Manufacturing etc.).
Skills Development Programme – Own and Operate the Gauteng Automotive
Learning Center.
5. Developing Black Entrepreneurs through the Incubation Program (Ford) and
another at BMW.
6. Build and support Township-based automotive entrepreneurs (Winterveldt
Township Automotive Hub)
7. Tshwane Automotive City (TAC) – Master Plan
KEY TASKS
1. Deepening Localization
2. Increase Black-ownership or Transformation Agenda within the Industry
3. Lobby for key supporting infrastructure – Supply Chain
Thank You!
CONTACTS
Dr. David Masondo
Tel. 012 564 5287 | Mobile. 072 889 9052
Email. [email protected]