Government policy and the South African motor vehicle industry 1924–1992

ABSTRACT

Government policy towards the South African motor industry from the 1920s onwards evolved largely in reaction to short‐term fiscal requirements rather than from a grand vision of an industralised economy. Import substitution policies, inadequate education and training, and uneconomic competition within the industry are among the factors that have led to high retail prices in an overtraded market. The vast bulk of the population cannot afford cars, and approximately 80% of new vehicles are currently sold to companies. In the increasingly hostile world of international automobile production, government policy may have to become proactive rather than reactive.