n Journal of Contemporary Management - Managers' views regarding optimisation of local content in the automotive component industry in KwaZulu-Natal

Volume 11, Issue 1
  • ISSN : 1815-7440



The purpose of the study is to determine the impact optimisation of local content in domestically assembled vehicles will have on the future growth potential of the automotive component sector. This was a descriptive cross-sectional study conducted among 47 managers who were selected randomly using anonymous questionnaire. The respondents indicated that the two major challenges faced by the automotive component industry were, the local manufacturers pricing in comparison to global manufacturers was higher and the high level of dependence that local manufacturers have on foreign licences. A large percentage of the respondents believe that to optimise local content in locally assembled vehicles, government intervention and support will have to be at a high level. Improving internal competitiveness, rationalisation to achieve economies of scale and maximising government support are some of the key drivers to achieving optimal local content in the automotive component industry.

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