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Automotive Industry Export Council

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The Automotive Industry Export Council (AIEC) was established in 1999 as the official private sector export promotion body for the automotive industry in South Africa. Products addressed include passenger cars, trucks and buses, original equipment components, aftermarket parts and accessories.

The AIEC works closely with Trade and Investment South Africa (TISA), the trade promotion arm of the Department of Trade and Industry, in the following main activities:

- General promotion of South African automotive manufacturing capability
- Trade Missions of South African companies to potential export markets
- Investigations and research into new markets and additional opportunities in existing markets

Funding of the above activities is subsidised by TISA for approved projects and travel.

In addition, the AIEC assists members by providing information on a wide range of markets and export-related subjects through continually updated research and databases, as well as assisting with training programs. The costs of membership are nominal and provide substantial benefits.

Vision


The vision of the AIEC is to ensure improved international competitiveness and, for the automotive sector as the leading manufacturing sector in South Africa, to upgrade its own export value chain as well as cross cutting value chains to make a bigger contribution to the economic growth and employment levels of the country.

General

Exports of automotive products from South Africa have shown rapid growth over the past decade and it is critically important to ensure that ongoing measures are in place to maintain the growth momentum. Failure to establish new markets and products could result in the stagnation of exports. It is therefore essential that focused activities, both ongoing and by means of specific projects, be established and maintained.

The inaugural meeting of the Automotive Industry Export Council (AIEC) was held in Johannesburg on 22nd June, 1999 to consider the rationale for the establishment of an export council for the South African automotive and associated industries.

Arising from the discussions and presentations which included input from the Department of Trade and Industry representatives as well as the industry regarding the merits of a formal industry structure to coordinate and address matters of interest to South African manufacturers involved in exports of vehicles and automotive components—it was clear that there was broad support, in principle, for the establishment of an automotive industry export council (AIEC).

A broad range of challenges and problems facing South African exporters in the development of export opportunities and new export markets were highlighted and it was the consensus view that the role of the proposed AIEC would be particularly important in identifying problem areas and obstacles to South African companies becoming more competitive in the export field. It was also decided that the focus of activities of the council should be in the area of non-competitive generic export projects and issues.

Based on comments at the inaugural meeting by representatives of a broad range of exporting automotive companies, it was agreed that the council should, as part of its work, focus on the logistics of the entire supply chain and explore the benefits of the possible pooling of logistical resources, in Europe and other parts of the world—such as the sharing of warehousing facilities offshore by South African exporters.

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