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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