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Johannesburg - Nissan South Africa (NSA) has announced an ambitious growth plan, which will see the automotive manufacturer increase volumes to over 50 000 units next year and possibly phase out production of certain low-volume vehicles at its Rosslyn plant.
NSA is aiming to produce 44 000 units this year.
The company needs to ramp up production again in 2011 to qualify for incentives set out by government's Automotive Production and Development Programme (APDP), which kicks into gear in 2013. APDP is aligned with state goals of 1.2 million units produced in SA by 2020.
However, Nissan's challenge will be to find a market to sell these higher volume levels to.
The company controls just 8% of the local vehicle market. Director of manufacturing Neil Craddock said NSA hopes to capture about 5% more market share over the next two years.
However, Nissan's bigger competitors are also jostling for a larger slice of the pie. Volkswagen South Africa, for example, has announced plans to double production this year, which translates into 40 000 VW units released into the local market alone.
Meawnhile, strong contender Toyota has also hinted in media reports at plans to protect its space in the South African market. It will possibly do this through the introduction of an entry-level passenger vehicle, which will fill the gap left by the now-discontinued Tazz model.
"Each automotive manufacturer is increasing volumes and that will saturate the local market," said Craddock.
NSA's plan is to target more export opportunities in Africa and Europe, although Craddock told Fin24.com that the precise destinations or export volumes had not yet been finalised.
Nissan's plant in Rosslyn employs 1 300 people and manufactures Hardbody bakkies, Livina utility vehicles and Tiida passenger cars. The facility also makes Renault Sanderos vehicles.
Craddock said there is a possibility that Nissan may discontinue production of one of these models if volumes are too low and production elsewhere in the world is more profitable.
NSA will also increase the proportion of local content in South African-manufactured vehicles, which currently stands at about 60%.
Higher local content levels are another key objective of the APDP, due to the potential to create jobs in the component manufacturing sector. Earlier this year, NSA's general manager of purchasing Stefan Haasbroek said he would like this proportion to rise to 70%.
- Fin24.com
NSA is aiming to produce 44 000 units this year.
The company needs to ramp up production again in 2011 to qualify for incentives set out by government's Automotive Production and Development Programme (APDP), which kicks into gear in 2013. APDP is aligned with state goals of 1.2 million units produced in SA by 2020.
However, Nissan's challenge will be to find a market to sell these higher volume levels to.
The company controls just 8% of the local vehicle market. Director of manufacturing Neil Craddock said NSA hopes to capture about 5% more market share over the next two years.
However, Nissan's bigger competitors are also jostling for a larger slice of the pie. Volkswagen South Africa, for example, has announced plans to double production this year, which translates into 40 000 VW units released into the local market alone.
Meawnhile, strong contender Toyota has also hinted in media reports at plans to protect its space in the South African market. It will possibly do this through the introduction of an entry-level passenger vehicle, which will fill the gap left by the now-discontinued Tazz model.
"Each automotive manufacturer is increasing volumes and that will saturate the local market," said Craddock.
NSA's plan is to target more export opportunities in Africa and Europe, although Craddock told Fin24.com that the precise destinations or export volumes had not yet been finalised.
Nissan's plant in Rosslyn employs 1 300 people and manufactures Hardbody bakkies, Livina utility vehicles and Tiida passenger cars. The facility also makes Renault Sanderos vehicles.
Craddock said there is a possibility that Nissan may discontinue production of one of these models if volumes are too low and production elsewhere in the world is more profitable.
NSA will also increase the proportion of local content in South African-manufactured vehicles, which currently stands at about 60%.
Higher local content levels are another key objective of the APDP, due to the potential to create jobs in the component manufacturing sector. Earlier this year, NSA's general manager of purchasing Stefan Haasbroek said he would like this proportion to rise to 70%.
- Fin24.com
