Govt aims to revive motor vehicle assembly industry

CLOUDINE MATOLA

The government is actively working to revive the once-thriving motor vehicle assembly industry as part of a broader strategy to promote local production, reduce imports, and stimulate economic growth.

This development was revealed by the Minister of Finance, Economic Development, and Investment Promotion, Professor Mthuli Ncube, during a recent interview on the sidelines of a tour of Glytime Foods’ food processing production line at Sunway City.

Professor Ncube explained that the initiative aims to reduce dependency on imported vehicles, boost domestic manufacturing, and create employment opportunities.

“We have introduced various incentives to support the revival of motor vehicle assembly plants such as Willowvale, Quest Motors, and David Engineering. One of these measures is allowing the duty-free importation of knockdown kits for local assembly. This will significantly contribute to job creation and help resuscitate the sector,” he said.

He further stated:“To promote local production, we have reimposed duties on fully assembled buses and other vehicles. These policies are designed to support the local manufacturing sector, enhance economic resilience, and drive the transformation of the economy.”

Efforts to rejuvenate the industry include offering investment financing and additional support services to encourage local production. By fostering a robust automotive industry, the government aims to strengthen the country’s industrial capabilities and contribute to sustainable economic development.

This move aligns with global trends, where governments are implementing policies to support their automotive sectors. It is estimated that the country has spent close to US$3 billion on imported vehicles, putting immense pressure on local vehicle assemblers.

In addition to revitalizing the automotive sector, the government has implemented measures to support a greener economy. These include removing value-added tax (VAT) on liquefied petroleum gas (LPG) and incentivizing the importation and infrastructure development for electric vehicles (EVs).

“We removed VAT on LPG to support citizens who rely on gas for cooking, especially in light of power challenges. This measure will significantly ease the burden on households,” Professor Ncube noted.

He added, “We have also reduced import duties on EVs from 40% to 25% to encourage the adoption of greener transportation. Furthermore, we are incentivizing the development of EV charging infrastructure to support this transition to a green economy.”

These initiatives reflect the government’s commitment to economic growth, industrial revitalization, and environmental sustainability.

Related Articles

Leave a Reply

Back to top button