LOWPOLICY SAnews.gov.za
Localisation still chief in SA's auto industry transformation ambitions
Source: SAnews.gov.zaView Original Source
The dtic is doubling down on localisation and transformation in the automotive industry, with a focus on integrating black- and women-owned firms into the NEV value chain. This will likely lead to revised procurement policies and incentives, creating both opportunities and compliance requirements for suppliers bidding on government-related automotive contracts.
Procurement teams and bidders must adapt to stricter localisation rules and prepare for new tender opportunities in NEV components, while ensuring compliance with transformation targets.
Government has reaffirmed its commitment to localisation and is reviewing the APDP, which will likely tighten local content requirements and introduce new incentives for NEV-related manufacturing.
This policy direction will ripple across the broader SA public procurement industry, as localisation requirements in the automotive sector may set a precedent for other industries, encouraging more local manufacturing and supplier development across the board.
Suppliers, especially those owned by previously disadvantaged individuals, should position themselves to enter NEV value chains. Monitor the APDP review and dtic announcements for new tenders related to local manufacturing, battery production, and charging infrastructure.
Bidders may face new local content thresholds and ownership requirements; failure to meet these could lead to disqualification or loss of preferential procurement status.
Excerpt reproduced for context. Tenders SA analysis is based on this public source. Read the full article at SAnews.gov.za.
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