n Journal of Contemporary Management - South African automotive policy intervention (1924-2008) : the case of an intelligently designed automotive support structure

Volume 8, Issue 1
  • ISSN : 1815-7440



A cause-effect relationship exists between government developmental automotive policy and the operations and market structure that apply to the domestic automotive industry. The overall regulatory regime in South Africa is very important in determining the actions of the domestic automotive firms. In the pre-Motor Industry Development Programme (MIDP) period, the South African government implemented a vast, complex set of tariffs and quantitative restrictions to encourage the development of a domestic automotive industry in recognition of the benefits of an automotive sector to the economy. In 1994, the small domestic market and the relatively large number of vehicle manufacturers operating in South Africa prompted a reexamination of the automotive sector, in line with the country's trade and economic liberalisation, to ensure its future viability. The lessons learnt from the automotive policy evolution contributed to the design of the MIDP. The new Automotive Production Development Programme (to be introduced in 2013) aims to double vehicle production to 1.2 million units by 2020. The aim will reflect a quantum leap in terms of the policy planning, processes and technologies used by the domestic industry currently - which can be ascribed to previous policy interventions by the South African government.

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