The Localisation Supermarket, both a physical showcase and online catalogue of automotive components that are currently imported and for which Tier 1 suppliers are seeking local alternatives, is giving impetus to the South African Automotive Masterplan’s targets to transform the automotive supply chain.
According to the AIDC Eastern Cape, who initiated the project with the Eastern Cape Automotive Industry Forum, bids have been made by local companies to produce 25% of the parts listed in the Localisation Supermarket.
SAAM 2035 has set a target to increase local content from 39% to 60% and to transform and deepen the automotive supply chain. According to the SAAM 2035 report an increase in the contribution of black-owned suppliers’ automotive GVA within the economy to 25% of the Tier 2 and Tier 3 total, is achievable.
The Localisation Supermarket is an innovative permanent exhibition of automotive components that are not produced locally. It provides tangible and transparent access to localisation opportunities in the Eastern Cape’s automotive supply chain, for black suppliers to participate meaningfully and to strengthen the manufacturing base of the sector. The supermarket is aimed at driving localisation to widen the manufacturing base and promote inclusivity of black suppliers.
Suppliers are able to view parts virtually, online and then express an interest on the platform after which the AIDC would engage eligible suppliers through a RFQ process.
“Many of the parts require a high level of technical expertise and successful suppliers need to comply with stringent international quality standards. We understand these real and valid barriers to entry and will work with qualifying suppliers to equip them to enter the supply chain, including access to finance,” the AIDC EC said.
A directory of parts for which Tier 1s and OEMs like Toyota are seeking local suppliers is available at https://lnkd.in/dkENuTC