Research on the performance of the manufacturing sector
The Automotive Components Sector
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The Automotive Components SectorWhile South Africa has a well-established automotive components industry, majority of the manufactured components are for export with almost R30 billion of components being exported in 2010, this was a marked increase of 12% from 2009. South Africa exports components to more than 70 countries including Japan, Australia, USA, and the United Kingdom. The automotive parts sub-sector has been identified by the IDC as a specialist field in which South Africa has a competitive edge. This sector has a strong reputation for producing products of excellent quality and this is supported by the success of the catalytic converter sector. What initially began as a start-up industry in the 1990’s has grown immensely, and now 14% of the world’s market for catalytic convertors is manufactured in South Africa. Other key automotive products produced in South Africa are:
Engine Silences Exhausts Radiators Wheels and tyres Stitched leather car interiors Car radios and axels To reduce warehousing space and costs, most manufacturers employ a ‘just in time’ system which means that the components are brought into the manufacturing plant only when required. Components are manufactured from a variety of raw materials, including steel, rubber and plastics. They are manufactured separately and sourced locally or imported. An automobile part may carry the designation Original Equipment Manufacturer (OEM) if the same manufacturer produces it and is the original part used when building and selling the finished products. Table 17: above indicates the automotive component sales by product type from 2006 to 2010. 
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