Eight auto component manufacturers will invest R2.4-billion in their South African operations as they either expand their footprint, or gear up for new business opportunities, says National Association of Automotive Component and Allied Manufacturers (Naacam) executive director Renai Moothilal.

Investments announced at last week’s SA Investment Conference include ZF Lemforder, Ebor Automotive Systems, MA Automotive, Atlantis Foundries (AF), Faurecia, VM Automotive, KLT and Motherson.




AF is a team of 800 employees manufacturing engine blocks for trucks. It exports 100% of its goods. AF has invested R82.3-million this year, and will invest a further R90-million in 2020.

Ebor Automotive Systems is investing R140-million in plastic injection mouldings, creating around 100 additional jobs.




VM Automotive is investing R426.23-million in a laser blanking line. Around 120 direct jobs will be created during the construction phase, and more than 50 jobs over the next seven years.



ZF Lemforder is investing R240-million in an East London axle plant.

Faurecia, a specialist in vehicle interiors, is spending R250.72-million on its Cape Town, Port Elizabeth and Pretoria operations.

“It is encouraging to see that these large-scale, high-impact investments are originating from multinational and domestically owned companies,” says Moothilal.

“These investments will significantly upgrade the capabilities of our sector’s supply base, while also potentially unlocking new localisation opportunities, in line with South Africa Auto Masterplan objectives.”

Moothilal adds that Naacam is keen to leverage the investments pledged in sectors allied to the automotive sector during the South African Investment Conference, held earlier this month.

The announcement at the conference by National Association of Automobile Manufacturers of South Africa of a R6-billion Automotive Industry Transformation Fund also presents “a significant opportunity to increase the participation of black-owned component manufacturers in the value-chain”.

“The potential economic multipliers here are significant in terms of employment and new business opportunities in a globally competitive auto destination,” says Moothilal.

“We look forward to engaging the fund to support strategic localisation and transformation projects.”