New rules for car manufacturers coming to South Africa
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.
The country will also stop providing policy support for any new semi-knock-down operations as the practice is called, Tau said in a statement on Thursday.
“We will work to strengthen the legal definitions around what we determine as complete-knock-down manufacturing.”
SKD typically creates fewer jobs than full manufacturing and is usually for tax efficiency. Local manufacturers have long asked for changes to policy on SKD assembly.
Tau also said his department would investigate the light commercial vehicle sector that includes vans and pickups.
“We have agreed that the strategic competitiveness of South Africa’s ladder-frame LCV segment warrants formal investigation,” he said.
Mahindra & Mahindra operates a semi-knock-down pick-up truck facility near Pretoria.
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