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The motor industry development programme and local content: has the MIDP's objective of increasing the local sourcing of components been achieved?

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The 1995 Motor Industry Development Programme (MIDP) was an attempt to transform the South African Automotive industry into a globally competitive industry. The import substitution policies, before the MIDP, which were characterised by high tariffs and local content requirements were ·replaced by an...

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Main Author: Bhanisi, Sipho
Other Authors: Black, Anthony. H.
Format: Thesis
Language:English
Published: School of Economics 2024
Subjects:
Economics
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_version_ 1867613162742743040
access_status_str Open Access
author Bhanisi, Sipho
author2 Black, Anthony. H.
author_browse Bhanisi, Sipho
Black, Anthony. H.
author_facet Black, Anthony. H.
Bhanisi, Sipho
author_sort Bhanisi, Sipho
collection Thesis
description The 1995 Motor Industry Development Programme (MIDP) was an attempt to transform the South African Automotive industry into a globally competitive industry. The import substitution policies, before the MIDP, which were characterised by high tariffs and local content requirements were ·replaced by an import-export complementation scheme, which encourages competitiveness by the introduction of foreign competition and assistance for exporting. This dissertation investigates whether the MIDP has increased value added or local content in locally manufactured motor vehicles, as anticipated by policy makers. The findings in this dissertation rely heavily on the limited data that is available in the industry. A dataset of component firms is used to establish the current trends with regard to local content in the domestic component industry. Export data is used to measure local content in both motor vehicles and component exports. Local content in the component purchases of the carmakers is also measured using a range of industry statistics. This dissertation shows that the domestic automotive industry has restructured and rationalised vehicle production, but despite this, local content in locally manufactured motor vehicles remains low. There appears to be a structural break between the domestic component industry and the vehicle· assembly industry. The South African component industry manufactures a large quantity of raw material intensive components that are targeted at foreign markets. In terms of the MIDP these exports can be used to offset import duties. The growing domestic vehicle production has to a significant effect been supplied by an increase of component imports. The major foreign owned component firms seem to be also involved in just-in-time assembling of these components for the carmakers. This is implied by the low levels of local content in their products.
format Thesis
id oai:open.uct.ac.za:11427/39171
institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:31:45.395Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2024
publishDateRange 2024
publishDateSort 2024
publisher School of Economics
publisherStr School of Economics
record_format dspace
source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/39171 The motor industry development programme and local content: has the MIDP's objective of increasing the local sourcing of components been achieved? Bhanisi, Sipho Black, Anthony. H. Economics The 1995 Motor Industry Development Programme (MIDP) was an attempt to transform the South African Automotive industry into a globally competitive industry. The import substitution policies, before the MIDP, which were characterised by high tariffs and local content requirements were ·replaced by an import-export complementation scheme, which encourages competitiveness by the introduction of foreign competition and assistance for exporting. This dissertation investigates whether the MIDP has increased value added or local content in locally manufactured motor vehicles, as anticipated by policy makers. The findings in this dissertation rely heavily on the limited data that is available in the industry. A dataset of component firms is used to establish the current trends with regard to local content in the domestic component industry. Export data is used to measure local content in both motor vehicles and component exports. Local content in the component purchases of the carmakers is also measured using a range of industry statistics. This dissertation shows that the domestic automotive industry has restructured and rationalised vehicle production, but despite this, local content in locally manufactured motor vehicles remains low. There appears to be a structural break between the domestic component industry and the vehicle· assembly industry. The South African component industry manufactures a large quantity of raw material intensive components that are targeted at foreign markets. In terms of the MIDP these exports can be used to offset import duties. The growing domestic vehicle production has to a significant effect been supplied by an increase of component imports. The major foreign owned component firms seem to be also involved in just-in-time assembling of these components for the carmakers. This is implied by the low levels of local content in their products. 2024-02-23T06:26:00Z 2024-02-23T06:26:00Z 2007 2024-02-23T06:25:31Z Thesis / Dissertation Masters Masters http://hdl.handle.net/11427/39171 eng application/pdf School of Economics Faculty of Commerce
spellingShingle Economics
Bhanisi, Sipho
The motor industry development programme and local content: has the MIDP's objective of increasing the local sourcing of components been achieved?
thesis_degree_str Master's
title The motor industry development programme and local content: has the MIDP's objective of increasing the local sourcing of components been achieved?
title_full The motor industry development programme and local content: has the MIDP's objective of increasing the local sourcing of components been achieved?
title_fullStr The motor industry development programme and local content: has the MIDP's objective of increasing the local sourcing of components been achieved?
title_full_unstemmed The motor industry development programme and local content: has the MIDP's objective of increasing the local sourcing of components been achieved?
title_short The motor industry development programme and local content: has the MIDP's objective of increasing the local sourcing of components been achieved?
title_sort motor industry development programme and local content has the midp s objective of increasing the local sourcing of components been achieved
topic Economics
url http://hdl.handle.net/11427/39171
work_keys_str_mv AT bhanisisipho themotorindustrydevelopmentprogrammeandlocalcontenthasthemidpsobjectiveofincreasingthelocalsourcingofcomponentsbeenachieved
AT bhanisisipho motorindustrydevelopmentprogrammeandlocalcontenthasthemidpsobjectiveofincreasingthelocalsourcingofcomponentsbeenachieved

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