South African automotive-com-ponent manufacturers intent on exporting to the US should consider exporting products for which there is a growing demand.

This is the view expressed at the Autocluster Africa conference this month by Roger Pitot, automotive sector consultant and chair of the National Association of Automobile Manufacturers of South Africa motor industry development plan (MIDP) committee.

He outlined a number of products for which there is a growing demand which could be filled in part by South African manufacturers.

Pitot noted that South Africa could become a producer of fuel-cells and nickel metal hydride batteries.

Catalytic converter-coating com-pany Johnson Matthey, which is well established in South Africa, has indicated that it could become involved in the production of fuel-cells, he revealed.

In addition, the country would have a strategic advantage in fuel-cells and nickel metal hydride batteries, since the country produces platinum as well as nickel, a byproduct of platinum production, said Pitot.

Airbags are another potential source of future exports.

These are already starting to be made for the European market, and they could also be exported to the US, Pitot advised.

South Africa ranks as the US’s twenty-second-largest source of automotive components.

The country exports a range of metal, plastic and other products.

However, Pitot indicated that South African exports to the US could grow further as a result of the MIDP and duty savings of between 2,5% and 6,5% under the African Growth and Opportunity Act (Agoa).

The figures mentioned may not seem to amount to much, but Agoa duty savings combined with MIDP benefits could result in companies being able to cover their logistics costs, he said.

There are already some export success stories, with 72% of the axles and shocks and 46% of seatbelts that South Africa sells globally destined for the US.

Pitot argues that companies should consider exporting if they produce any of these products. South Africa’s share of some components which do not fall under the North American Free Trade Agreement (Nafta) is considerable.

The country takes a 35,1% share of the non-Nafta exports of catalytic converters to the US.

It also takes a 13,7% share of non-Nafta exports of seatbelts to the US.

This is considerable if one considers that South African components make up about 1% of total component exports to the US, argued Pitot.