According to the National Association of Automobile Manufacturers South Africa (Naamsa), South Africa has less than two years to make a positive swing toward new-energy vehicles (NEVs). The need to increase local manufacturing capabilities and support the rollout of infrastructure geared towards NEVs is critical if South Africa wants to remain a competitive player in the global market.
As such, the Department of Trade, Industry and Competition is already working on an NEV roadmap that will outline the way forwards for automotive components manufacturers and original equipment manufacturers (OEMs). This roadmap takes a production-led approach which will keep our local manufacturing sector at the forefront of the global market.
Many of Formex’s customers have announced plans to ramp up production of electric vehicles (EVs) and hybrids, so this call by Naamsa is clearly justified. As a leading automotive components manufacturer and supplier, Formex is geared towards high-tech production capabilities through our state-of-the-art facilities. Shifting towards NEVs will be a positive step for the country in the near future.
Naamsa pushes for NEVs
According to Naamsa CEO, Mikel Mabasa, the future of the industry is “absolutely under very serious threat” if the shift toward NEVs does not happen before 2025. This includes component manufacturers and OEMs as South Africa’s largest export markets are the UK and Europe. Internal combustion engines (ICE) are facing a total ban in these regions from 2030.
With such a strong international shift away from traditional engines and vehicles, South Africa cannot afford to be complacent. Currently, only two of the seven OEMs in the country offer hybrids, plug-in hybrids and EVs. Although, more OEMs have stated their intentions to move away from ICE powertrains soon.
Mababsa spoke at the launch of the South African Auto Week in Johannesburg last month and noted that the other manufacturing countries are quickly positioning themselves to slot into the global NEV production chain. Many of these countries have already developed policies around NEV manufacturing and sales, while SA’s policies are in the early stages.
Significance of SA Auto Week
The SA Auto Week, which is set to take place in the last week of October 2022, is a key engagement platform between the local automotive industry, government, trade unions and other stakeholders. It is integral to sustaining and forming partnerships between the various sectors of industry, both private and public.
“The main goal of the SA Auto Week is to accelerate and enhance our discussions around the future of the auto industry,” explains Mabasa. This business-to-business event will be held at the Kyalami Convention Centre in Johannesburg and will place a large emphasis on NEVs, the infrastructure of the future and the resulting job creation.
With a clear global shift towards NEVs and renewable energy for transport, Formex supports the transition towards local manufacturing of these new-age vehicles and components. Many of our existing components will still be needed on NEVs, such as window frames, door sills, seatbelt anchors and completed assemblies. For more information about our components and products, please contact us today.
Formex Industries is a metal forming and assembly company that supplies a variety of complex products to the local automotive industry and the export market. The company is based in the Nelson Mandela Bay metropole, South Africa’s foremost region for automotive manufacturing and export.
Formex is a Level 2 B-BBEE supplier. The company is owned by Deneb Investments Limited – a subsidiary of Hosken Consolidated Investments Limited (HCI) – one of South Africa’s biggest true B-BBEE companies listed on the Johannesburg Stock Exchange (JSE).
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