The Eastern Cape’s newly launched Automotive Industry Development Cluster (AIDC) aims to improve the image of the SA automotive industry abroad and make it more competitive.

The AIDC, which intends opening an office in East London amongst others, is a collaboration between the Gauteng provincial government, the Eastern Cape Development Corporation (ECDC) and the CSIR

The centre is mandated by government to help entrench the region as hub for the automotive industry. It will do so by providing cutting edge consulting services in areas such as logistics, production, process engineering, working towards shop floor improvement and human resources development.

The AIDC is already involved in several key projects including the feasibility study and project management of an automotive logistics and light industrial park in Uitenhage – a multi-million investment in the local industry.

While the importance of this industry is acknowledged – it contributes 5,8% to the gross domestic product – it does have its own set of challenges which includes the high cost of logistics and transport because of the long distance to markets.

The industry is even more significant for the Eastern Cape as it is home to four of Africa’s largest vehicle manufacturers and over 150 component manufacturers. It contributes to South Africa’s 0,9% share of total world vehicle output and 83% of Africa’s vehicle output.