South Africa government's support of the automotive industry: prospects of the productive asset allowance

Figures & data

Table 1: MIDP phase-down of customs import duty for vehicles and vehicle components for light vehicle, medium and heavy vehicle categories

Effective date	Light vehicle segment		Medium and heavy vehicle segment
	Vehicles (%)	Components (%)	Vehicles (%)	Components (%) – Engines
1 January 1995	65.0	49.0	40.0	50.0
1 January 1996	61.0	46.0	37.5	45.0
1 January 1997	57.5	43.0	35.0	40.0
1 January 1998	54.0	40.0	30.0	35.0
1 January 1999	50.5	37.5	25.0	30.0
1 January 2000	47.0	35.0	20.0	25.0
1 January 2001	43.5	32.5	–	–
1 January 2002	40.0	30.0	–	–
Source: thedti, 1995.

Table 2: Investment expenditure, domestic market and export share of vehicle manufacturers 1998–2004

Year	Investment (Rm)^1	Investment in support infrastructure (incl. R&D) as % of total OEM investment	Investment in plant, machinery and tooling as % of total OEM investment
1995	847	9.2	86.6
1996	1171	11.1	85
1997	1265	8.8	81
1998	1342	10.4	85.2
1999	1511	7.6	87
2000	1562	9	83.9
2001	2078	11.8	86.6
2002	2726	9.6	84.8
2003	2325	8.3	85.5
2004	3577	10.1	86.9
Source: thedti, 2004; NAAMSA, 2001–06.

Table 3: R&D intensity classes 2000

R&D intensity∗	Percentage of firms	Cumulative percentage
0%	51.2	51.2
0.01 to 1.50%	14.9	66.1
1.50 to 3.00%	16.9	83
3.00 to 4.50%	8.9	91.9
4.50 to 6.00%	1.4	93.3
6.00% or more	6.7	100
∗R&D intensity refers to the percentage of workers in the total workforce of an organisation performing R&D activities.
Source: Oerlemans et al., 2003.

Table 4: Domestic market share of locally produced vehicles and vehicle export growth rate of the South African automotive industry

Year	Domestic market share of locally produced vehicles (%)	Vehicle export – Annual growth rate
1995	93.2	–
1996	88.7	− 26.7
1997	85.6	69.4
1998	81.1	32.3
1999	81.5	130.6
2000	81.3	13.9
2001	77.9	59.2
2002	75.8	15.7
2003	77	1.1
2004	71.6	− 12.8
Source: Calculations based on NAAMSA, 2001–06.

THEDTI (Department of Trade and Industry) . 1995 . Board of Tariffs and Trade Report 3625 , Pretoria : Government Printer . revised customs dispensation for the motor industry

 Google Scholar

THEDTI (Department of Trade and Industry) . 2004 . Current developments in South African automotive industry , Pretoria : Government Printer .

 Google Scholar

NAAMSA (National Association of Automobile Manufacturers of South Africa) . 2001–06 . Annual reports , KwaZulu Natal : Balgair Publications .

 Google Scholar

Oerlemans , L A , Pretorius , M W , Buys , A J and Rooks , G . 2003 . Industrial innovation in South Africa: 1998–2000 , Pretoria : University of Pretoria .

 Google Scholar