Embracing the Future: The Eastern Cape's Vision for Auto Sector Growth

As the automotive sector celebrates 100 years in South Africa, the Eastern Cape Province reaffirmed its commitment to driving growth, innovation, and investment. In an address at the South African Auto Week hosted in Cape Town by The Automotive Business Council (naamsa) on 15-18 of October 2024, Eastern Cape Premier Oscar Mabuyane outlined the province's strategic vision for the sector's future.

As we celebrate a rich history and embracing a bright future, the Eastern Cape's automotive legacy began in 1924 with Ford's manufacturing operations in Gqeberha, followed by General Motors in 1926. Today, the province boasts the largest network of component suppliers, exporting globally and accounting for 46% of South Africa's total production and 54% of vehicle exports.

The Premier acknowledged the industry's global challenges, including market shifts, electrification, and OEMs' struggles. However, he emphasised the need for innovative strategies, mutually beneficial models, and embracing New Energy Vehicles (NEVs). China's growing influence in NEV manufacturing presents opportunities for collaboration and investment.

In channelling investment attraction and job creation the Eastern Cape is poised to capitalise on these opportunities. BYD, a leading Chinese NEV manufacturer, is considering locating in the province, creating jobs, and stimulating economic growth. Transnet's port and rail network will play a critical role in facilitating this investment.

To prepare for the future, the Eastern Cape has launched several initiatives:

1. A roll-out of 13 Universal and Public Owned EV Charging Stations by March 2025.

2. Apprenticeships in EV skills through the Mercedes Benz Learning Academy for 48 young people in the province.

3. Provincial Automotive Masterplan 2035 encouraging partnerships between provinces and private sector that will be released soon.

4. Provincial EV strategy has been completed and approved by the Provincial Cabinet Committee.

5. The Eastern Cape will host the 2025 edition of the Naacam Show at Nelson Mandela Bay Stadium in Gqeberha.

Mabuyane emphasised the importance of cooperation between government, private sector, and provinces. As the automotive sector navigates global challenges, the Eastern Cape Province is poised for growth, innovation, and investment. By embracing NEVs, fostering collaboration, and investing in infrastructure, the province will cement its position as a hub for automotive manufacturing and export.

"The future of the automotive sector is not going to be the same in the next 10 years. We need to start thinking outside the box and consider different, mutually beneficial automotive sector strategies and models.

The Eastern Cape is an auto manufacturing hub of this country. So, we need to do everything in our power as the government to ensure that we are in line, and we are able to be ahead of the curve”- the Premiere said.