Title: The South African auto industry in a world of GVCs: lead firm sourcing strategies and local supplier development

Authors: Lorenza Monaco; Tobias Wuttke

Addresses: GERPISA, École Normale Supérieure Paris-Saclay, 4, Avenue des Sciences, 91190 Gif-sur-Yvette, France; South African Research Chair in Industrial Development, University of Johannesburg, 31 Henley Road, Johannesburg, 2092, South Africa ' Roskilde University, Universitetsvej 1, 4000 Roskilde, Denmark

Abstract: This article aims to contribute to the theoretical debate on GVCs-driven industrialisation in emerging economies and to the South African policy debate by closely investigating the local manufacturing base in the South African auto industry and the prospects for its further expansion. For this purpose, it builds on more than 50 semi-structured interviews, conducted throughout 2021 with assemblers, large multinational component firms with subsidiaries in South Africa, local component manufacturers, policymakers and industry experts. The paper argues that only by combining an understanding of lead firms' sourcing strategies and local component suppliers' perspectives, an assessment of obstacles and opportunities for localisation is possible. In this regard, the paper provides an in-depth analysis of sourcing strategies of the assemblers and multinational component firms and a comprehensive picture of structural, policy-related, market-dependent, and capability-related issues that local component suppliers face with regards to deepening local value addition.

Keywords: automotive industry; sourcing strategies; localisation; global value chains; global production networks; assemblers; component suppliers; South Africa; industrialisation.

DOI: 10.1504/IJATM.2023.133352

International Journal of Automotive Technology and Management, 2023 Vol.23 No.2/3, pp.104 - 120

Received: 23 Aug 2022
Accepted: 30 Nov 2022
Published online: 13 Sep 2023 *

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