There are some 140 national NAACAM member companies with approximately 220 regional manufacturing sites, in addition to 23 associate members who provide mainly logistics, IT and financial services to members.
Amongst NAACAM manufacturing members, about 110 supply to the OEMs (for car assembly operations as well as for the OEM aftermarket needs) and to the independent aftermarket. The balance are Tier 2 and Tier 3 suppliers.
Almost 70% of South African main Tier 1 manufacturers are NAACAM members, while outside of NAACAM there are some foreign and smaller local companies who are either not members of any association or are affiliated to tyres, plastics, stainless steel, aluminium and similar bodies.
The estimated employment of the component manufacturing sector at the end of 2014 was 82,790. This figure is made up as follows:
||49,261 (in 2013: 51,894)
||5,469 (in 2013: 6,450) (the decrease is mainly due to the closure of the Apollo factory in Durban)
||3,900 (in 2013: 5,015) (this sub-sector shows continuous decline in the face of diminishing benefits under the Automotive Production & Development Programme)
|Not affiliated (but primarily Tier-2 & 3 automotive suppliers)
||25,000 (this estimate figure is based on figures provided by the Study on the Retention & Creation of employment in the South African automotive manufacturing industry: P 172 – BCS Africa).
Thus the estimate figure for the level of employment in non-affiliated companies has been increased from 12,000 persons in 2013 (very conservative estimate) to 25,000 persons as at the end of 2014, following the publication of two new reports on employment in the South African automotive industry which confirm the deepened employment in the lower tier levels of the automotive component sector.
In the International Labour Organisation Automotive Study entitled “Industry Mapping and Supplier Diagnostic Report”, the total employment figure for the component sector is estimated at 84,680 (Page 25), which is reasonably close to the estimate of 82,790 mentioned above.
This substantial increase from 2013 (12,000) to 2014 (25,000) should be appreciated within the context, as specified in the Retention & Creation of Employment Study, which suggests that the Tier 2 and Tier 3 component manufacturers tend to manufacture non-auto related products as well and it is very difficult to estimate exactly how many employees are dedicated to the auto industry. And finally, their employment levels are volatile depending on the time of the year.
NAACAM members’ annual sales for 2014 was an estimated R50 billion, a 6 % decrease on the 2013 figure of R53 billion.
The split of sales is estimated as follows:
|Sales to Vehicle Assemblers – for assembly
||R14.2 billion (2013: R13.1 billion)
|Sales to OEMs (parts & accessories)
||R 2.4 billion (2013: R 1.8 billion)
|Independent aftermarket sales
||R 3.8 billion (2013: R 4.1 billion)
|Sales to other component manufacturers
||R 1.5 billion (2013: R 1.5 billion)
||R 5.9 billion (2013: R 8.4 billion)
The sales of components to Vehicle Assemblers for vehicle assembly and for their aftermarket have increased from R 14.9 billion to R16.6 billion (+14 %). In 2013, the automotive industry was severely affected by a seven-week strike. This increase in 2014 may be partly due to efforts to reconstitute depleted stocks. On the other hand, export sales of components have decreased substantially from R8.4 billion to R5.9 billion (-30%). This drop may be the result of lack of competitiveness of the local component manufacturers as well as the impact of the labour unrest on the attractiveness of sourcing from South Africa.
For 2014, the total turnover of the entire component manufacturing sector, including duplication sales, is estimated at R 78.4 billion. This total includes the estimated turnovers in the other following sectors:
|Catalytic converters (not included in NAACAM data)
||R21.3 billion (including the value of the precious metals)
• Capital Expenditure
NAACAM members' capital investment in 2014 is estimated at R1.9 billion (2013: R2,0 billion) and total component industry capital expenditure is estimated at R2.7 billion (2013: R2,9 billion).
Thus capital expenditures show a very slight drop from 2013 to 2014.
• Local Content
The average local content of the components produced in South Africa is estimated at 60%, with those being exported averaging 78%.
However, the net value of local components used in vehicles is significantly lower, less than 40% of the total component value. One of the objectives of the APDP is to encourage localisation.