1. Presenter : Dr. David Masondo Date : 09 June 2016 STATE-AUTOMOTIVE INDUSTRY PARTNERSHIP

2. Presentation Structure 1.Who is the AIDC? 2.AIDC Flagship Projects. 3.Significance of state-&-business partnerships in the sector. 4.Economic Importance of the automotive sector. 5.Challenges facing Gauteng based automotive industry (incl. OEMs). 6.Role of the AIDC.

3. Who is the AIDC? Established in 2001 by Industry & Gov to support automotive industry. The AIDC is an implementation agency of provincial government Approx. 170 staff across multiple sites Asset Base approx. R850 mil.

4. Significance of State-&-Business partnerships in the sector The state needs business to invest in order to create employment and tax base. INDICATORNATIONALGAUTENG GDP 7% (R218BN) 14% Employment 500 thousands176 thousand Labour Income R83bn Tax and Import R43bn

5. Upstream & Downstream Linkages in the Sector UPSTREAMCORE AUTOMOTIVEDOWNSTREAM Primary Sector (Raw Materials)Manufacturers Tertiary (sales, after market etc.) Mining (E.G. Platinum) OEMs, Component Manufactures After market services (Repairs, auto parts etc.) Leather Finance & insurance Textile Car hire Rubber, Paint, Etc.

6. Products from Gauteng based OEMs OEMs Products (Excluding HCV and Bus) Source: AIDC’s Tshwane Auto-sector profiling

7. Products from Gauteng based components Manufacturers

8. Challenges Facing Automotive Sector in SA 1.Market size, 2.Distance from global market, 3.Logistics costs and infrastructure 4.Skills upgrading/training, 5.Transport cost for labour 6.Components Manufacturing in Tshwane opting for Botswana & Lesotho e.g. Euro-plasform, ALC &, Pasdec (Brits) 7.Global economic conditions

9. AIDC’s ROLE 1.Market share – looking into sub-Saharan Africa. 2.Own and operate the Automotive Supplier Park (ASP). 3.Production Efficiency Program (Lean Manufacturing etc.). 4.Skills Development Programme – Own and Operate the Gauteng Automotive Learning Center. 5.Developing Black Entrepreneurs through the Incubation Program (Ford) and another at BMW. 6.Build and support Township-based automotive entrepreneurs (Winterveldt Township Automotive Hub) 7.Tshwane Automotive City (TAC) – Master Plan

10. KEY TASKS 1.Deepening Localization 2.Increase Black-ownership or Transformation Agenda within the Industry 3.Lobby for key supporting infrastructure – Supply Chain

11. Thank You!CONTACTS Dr. David Masondo Tel. 012 564 5287 | Mobile. 072 889 9052 Email. dmasondo@aidc.co.za dmasondo@aidc.co.za