With the global shift to a mobility ecosystem it is a critical time for SA to consider what role it will play in shaping the future of mobility.
South African automotive exports earned the country R164.9-billion in 2017, translating to 13.9% of SA’s total export earnings. This is set to change in the not-too-distant future, as the effect of policy andregulatory changes in countries such as the UK and China translates into the decline of demand for internal combustion engine (ICE) motor vehicles and related components, which will have a significantimpact on the economy.
With the global shift to a mobility ecosystem – which will ultimately change how people and goods move in the future – it is acritical time for SA to consider what role it will play in shaping the future of mobility, both domestically and globally. How does this impact the manufacturing sector? The short answer: In more ways than one. The 2018 Automotive Export Manual (AEM) indicates that 2017 vehicle and component production accounted for 30.1% of SA’s manufacturing output. The broader automotive industry’s contribution to the gross domestic product (GPD) was 6.9%. KPMG South Africa has unpacked some of the threats that lie ahead and focused on the opportunities they could potentially unlock.
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