South Africa to Phase Out Semi-Knock-Down Vehicle Assembly: Minister
South Africa to Phase Out Semi-Knock-Down Vehicle Assembly: Minister
The country will halt policy support for new semi-knock-down (SKD) facilities, Minister of Trade, Industry and Competition, Parks Tau, said at the SA Auto Week in Durban.
Other points from the minister's keynote address at the event:
🟠The government is reviewing the Automotive Production Development Program to strengthen local manufacturing.
🟠Regulations for complete-knock-down manufacturing will be tightened, and light commercial vehicles are under investigation for potential protection.
🟠To secure export markets, the sector is pivoting toward new energy vehicles, critical minerals beneficiation, and a new battery recycling policy.
Why This Matters for South Africa:
Closes a loophole that undermines real manufacturing
Pushes automakers to build vehicles locally from the ground up
Aims to boost local content from 38% to 60%
Targets doubling employment in the sector by 2035
What is SKD?
Automakers import near-complete vehicles in kit form
They simply assemble them locally
This lets them avoid import duties and create few jobs or investment
Minister Parks Tau speaking at the opening of the SA Auto Week.
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