CAPE TOWN: South Africa plans to extend its auto industry incentive scheme to include commercial vehicles and motorbikes when the current support programme ends in 2020, the trade minister said on Monday. Under the current plan, manufacturers such as Toyota and Volkswagen benefit from incentives such as tax rebates aimed at doubling local vehicle production to 1.2 million by 2020. Trade and Industries Minister Rob Davies said in a statement the new plan will include light, medium and heavy vehicles and motorcycles.
The auto industry, which contributes more than 7 percent to gross domestic product and accounts for around 12 percent of exports, is a major employer with about 30,000 jobs. Other companies with factories in South Africa are Ford Motor Co, General Motors and BMW.
