The major players in South Africa's automotive industry must guard against fragmentation within the sector and should instead co-operate with each other to face the real competitors overseas, says Economic Affairs MEC Andre de Wet.

De Wet, who spoke at the first launch of the Automotive Industry Development Centre (AIDC) here, said to be globally competitive and to stay ahead was a tall order for the auto industry but it had to be done.

"The real competitors in this sector are not in South Africa but overseas. South Africa is not really where the market growth is," he said.

AIDC MD Paulo Fernandes echoed De Wet's warning and said co-operation was needed in the automotive industry. He said the AIDC programme for East London - known by the Sotho word Tirisano (working together) - would help the industry to work together.

Acting Eastern Cape Development Corporation CEO Kevin Wakefield said teamwork was needed to face up to challenges within the industry.

"I don't believe that, if we examine the activities within the sector, there is team work.

"We have to increase our 0,7 percent global market share."

Wakefield called for the progressive intervention of the state, co-operation from the trade unions and a role for the private sector as the answers to a united front.

DTI automotive director Gustav Meyer said his department would look at further market access as one of the issues it will address in the future.