AIDC-EC Hosts Portfolio Committee to Future-Proof the Automotive Sector

Following a foundational briefing to Parliament in January 2026, the Automotive Industry Development Centre Eastern Cape (AIDC-EC) on 18 March 2026 hosted the Portfolio Committee on Trade, Industry, and Competition for a critical oversight visit.

Led by CEO Mr Thabo Shenxane and the AIDC-EC Board Chairperson Mr Phumzile Zitumane, the engagement served to provide insights on how component suppliers are supported, discuss key automotive policy issues, present projects in the electric vehicle space and explain how AIDC-EC is supporting SMMEs in the aftermarket industry.

While the Eastern Cape remains the heart of South African vehicle manufacturing, Mr Shenxane noted that the industry is currently "stagnant" rather than growing. To spark a new era of expansion, the AIDC-EC outlined a roadmap focused on four pillars:

• Engaging in automotive policy issues and the choices that need to be made by the country

• Transitioning from Internal Combustion Engines (ICE) to electric mobility.

• Empowering SMMEs in vehicle maintenance and repair.

• Strengthening the component suppliers who employ over 39,000 people in the province.

The AIDC-EC is proactively preparing the province for the global shift to EVs. A standout achievement highlighted was the establishment of 15 EV charging stations across the province, linking urban centres to rural areas like Libode, Tsolo and Silaka Nature Reserve in Port St John’s.

"You are not going to have a population of EVs coming and moving through our province if we do not invest in infrastructure, knowledge and skills," said Shenxane.

The electric vehicle roadmap also emphasises the need for "Awareness Programs" to educate government officials and the public on e-mobility, ensuring the Eastern Cape is not left behind.

A significant portion of the engagement with the Portfolio Committee focused on "lifting up" the challenges that hinder local growth of the automotive sector. The AIDC-EC presented several urgent recommendations to the Portfolio Committee, including:

• Promoting CKD manufacturing, managing the use of import duties and managing the increase of imports into the country

• Protect locally based OEMs through enabling policies, utilising government procurement to procure vehicles produced by locally based OEMs

• Encourage aftermarket incentivisation to support SMMEs in the aftermarket.

• A policy decision to fully utilise the East London Port to alleviate the chronic congestion at the Port of Durban.

• Addressing load shedding and energy security to stimulate more investments

• Deal with crime and criminal activities because they are major deterrents to foreign investors.

• A proposal to create a provincial fund to protect Tier 2 and Tier 3 suppliers from global tariff shocks (such as AGOA uncertainty) and geopolitical volatility.

• The war in the Middle East will eventually affect Europe in the not so near future. Europe is the biggest market for South Africa and by extension, our country will suffer in the medium to long term.

In a moving moment of the presentation, Mr Shenxane highlighted the Recognition of Prior Learning (RPL) project. This initiative helps veteran technicians, many of whom have been fixing vehicles for decades without any formal schooling, earn their Red Seal certificates. As of late, 55 candidates have passed certifications since June. This grants international recognition to local artisans and prepares them to maintain government vehicles, keeping the R260 million provincial maintenance budget within the Eastern Cape.

The Portfolio Committee, led by Chairperson Mr Mzwandile Masina, acknowledged the need for better coordination between national, provincial, and local government. The visit concluded with a commitment to explore a "working group" to tackle these issues with clear timeframes.

As we reflect on this oversight visit, the AIDC-EC remains committed to the SAAM 2035 goals, ensuring that every technician, supplier, and manufacturer in the Eastern Cape has a seat at the table in the new automotive economy.