Nissan South Africa has said it plans to increase annual vehicle production and expand its exports beyond the African continent, adding that a new government support programme had put a new focus on its business.
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Corporate and finance director Greg Field told South Africa’s Engineering News that the Automotive Production and Development Programme (APDP), to be introduced in 2013, puts an “export focus on our business”.
The APDP will replace the current Motor Industry Development Programme (MIDP) and will provide volume-based incentives to plants producing 50,000 units a year or more.
Field said Nissan SA has taken a firm decision to seek export markets outside Africa in order to achieve the 50,000 target. He added: “We can’t rely on Africa and the domestic market only.”
The Middle East and Europe had “high potential” as export markets for the Navara SUV replacement and NP300 pick-up, he added.
Field said the South African government’s industry support programmes had been a big positive for Nissan over recent years. “Without government support, would there really have been a plant here?”
On the downside are the logistical costs involved in building cars in the country. Nissan SA will produce fewer than 40,000 vehicles at its Rosslyn plant this year. It assembles the Tiida, Livina, NP300, NP200 and Renault Sandero.
