South Africa to Restrict Assembly of Imported Car Kits, Trade Minister Says
South Africa will tighten vehicle-manufacturing rules to "phase out" the practice of importing cars as kits for assembly in the country, Trade Minister Parks Tau said during an address at SA Auto Week in Durban, according to a statement issued on Thursday and reported on October 17.
The country will also stop providing policy support for any new semi-knocked-down (SKD) operations, Tau said. "We will work to strengthen the legal definitions around what we determine as complete-knock-down manufacturing." SKD assembly typically creates fewer jobs than full manufacturing.
The move forms part of South Africa's push for localisation in the automotive industry, with the government seeking more complete manufacturing in the country rather than low-value kit assembly. Details of the revised rules and any transition arrangements are expected as the regulations are developed. (GSM, based on SA News reporting)
Source: GSM · USA (original Chinese edition)
Photo: 比勒陀利亚联邦大厦。The union buildings, pretoria. Photo by Ruby D-Brown, Wikimedia Commons, CC BY 4.0.
