Download - Johan cloete
Automechanica 2011
Overview of Investment Opportunities
Sales , Imports, Exports and Production Investments by OEMs Vision 2020 Automotive Production and Development
Programme Contact Details
Agenda
Sales, Exports,Imports,ProductionMarket dependant on GDP growthProduction dependant on Investment growth
Sales, Exports,Imports,ProductionMarket nearly doubled in 2006 before global crashProduction exceeded market only 4 times; forecast looks
good
Sales, Exports,Imports,ProductionImports increase rapidly when economy grows Exports took a decade to catch up with imports
Capital Expenditure by OEMsInvestment peaked in 2006 due to platform rationalisation A new OEM will require at least R 5 billion in fixed assets
VISION 2020Passenger & Light CVs
To produce over a million vehicles anualy This is 350 000 more than 2012 forecast Growth expected mainly from exports Potential for 1 or 2 new OEMs OEM volumes will drive more component
localisation New jobs to be expected Skills gap challenge
8
The APDP consists out of 4 pillars that will drive the programme: Import Tariff Protection . Vehicle Assembly Allowance (VAA). Production Incentive (PI). Automotive Investment Scheme (AIS).
APDP
Imp
ort
Ta
riff
s
Veh
icle
As
sem
bly
A
llo
wan
ce
Pro
du
ctio
n
Ince
nti
ve
Au
tom
oti
ve
Inve
stm
ent
Sch
eme
Background and Objectives of the APDP
Protection Rebates Support
36%
25%25% 25%
29%
24%
18%18%18%
10%
15%
20%
25%
30%
35%
40%
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
FBU Import Duty FBU Import Duty (EU Pref Rate)
20%
24%
20%20%
28%
10%
15%
20%
25%
30%
35%
40%
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
CKD Import Duty Rate
The New APDP will have stable, moderate import tariffs from 2012:
•25% for Completely Built Up Vehicles (CBUs).
•18% for CBU’s out of Europe via the EU preferential rate.
•20% for CKD components used by vehicle assemblers.
FBU Import Duty Rate CKD Import Duty Rate
Import Tariff Protection
MIDP APDP MIDP APDP
The Vehicle Assembly Allowance (VAA) will allow vehicle manufacturers
with a plant volume of at least 50,000 units per annum to import a
percentage of their components duty free.
• 20% reducing to 18% over 3 years.
• Introduction in 2013.
27% 27%
19%18%18%
20%
14%
16%
18%
20%
22%
24%
26%
28%
30%
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
DFA% of Domestic Turnover VAA% of Domestic and Export Turnover
Vehicle Assembly Allowance (VAA)
MIDP APDP
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The Production Incentive will be in the form of a duty credit aimed at
raising production value-added:
• 55% reducing to 50% over 5 years.
• Value-added = Sales minus Imported Components and
Non qualifying Raw materials.
• Additional 5% for vulnerable sub-sectors.
• Introduction in 2013.
55%
52%
50%50%51%
54%53%
45%
50%
55%
60%
'13 '14 '15 '16 '17 '18 '19 '20Production Incentive
Production Incentive (PI)
Qualifying Raw Materials25% Standard Value added on raw materials
• PGM’s (Sponge)• Leather (wet blue)• Aluminium (Ingot)• Steel ( Coil / bar)• Stainless steel (Coil)
Automotive Investment Scheme (AIS)
The Automotive Investment Scheme is a Direct Cash Grant to support
investments:
• 20% of a projects value paid over 3 years.
• 5% - 10% Additional support providing certain requirements are fulfilled.
• Limits to be placed to eliminate many small projects:
OEM Investments - project min value is R 30.0 Mio.
Supplier Investments - project min value is R 1.0 Mio.
• Introduction of the AIS 1st July 2010.
ASHLEY GARDENS OFFICE PARKMenlopark, PretoriaCorner Garsfontein & Matroosberg Street
Johan Cloete
[email protected] +27 82 550 7683
Brian Verwey
[email protected] +27 82 877 7263
Werner Pretorius
[email protected] +27 82 877 7842
Craig Verwey
[email protected] +27 83 603 0332
Rouan Cloete
[email protected] +27 82 875 0021
CONTACT DETAILS