Earlier this week President Cyril Ramaphosa was at Nissan South Africa, where the company announced its plans to invest R3 billion in its South African plant to prepare for the production of the latest version of the Navara pickup.
Fin 24 says that Nissan’s investment is the first significant commitment by an automaker since international firms agreed with government late last year to extend a manufacturing incentive programme through to 2035.
The publication further adds that Nissan may add 30 000 units to the plants current annual volume of 35 000. The plan has also seen the likes of Toyota, Volkswagen and BMW operate plants in the country in return for generous tax breaks, with the majority of vehicles produced for export.
“Automotive is already the largest part of South Africa’s manufacturing sector, contributing around 7 percent of gross domestic product annually and accounting for a third of manufacturing output,” added the President.
According to Nissan, the plans for the production of its new Navara model will begin in 2020, with the carmaker hoping that this will in turn create jobs for South Africans. The company adds that it plans to double its industrial reach in the Middle East, Africa and India by 2022, by adding more factories.