Monday, June 16, 2008

Automotive Parts And Components

The automotive parts and components industry in KwaZulu- Natal consists of approximately 100 firms, employing 18,000 workers, and contributes an estimated 1.3% to the province's gross geographic product. The industry produces a wide range of components for the OEM market and the after-sales spare parts market. Products include glass, brake components, looms, hoses and piping, rims, springs, exhausts, pressings and castings, and belts and accessories.

The motor industry development programme (MIDP) has been in existence for a number of years, providing the framework of government policy within which the automotive sector can rationalise its imports, exports and local production. The MIDP attempts to rationalise the number of models assembled locally and to increase exports of fully assembled vehicles and components.

The MIDP as currently structured is scheduled to continue until 2007. In view of the long product development cycles in the auto industry, current uncertainty on the official future policy position is a possible deterrent to expansion.

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