India’s auto industry to boost investment in Africa amid global trade shifts

India's auto sector is expected to grow in Africa as a number of businesses intend to establish new plants and transform their current assembly lines into fully functional manufacturing facilities.

According to News Africa, the action coincides with Africa's efforts to get large international automakers to invest and boost its domestic auto industry.
 
Indian and Chinese automakers have shown a desire to increase their investments in Africa, according to Parks Tau, the country's minister of trade, industry, and competition.
 
As part of the government's plan to boost the local auto sector, which is beset by a number of problems like declining export demand, increased competition from lower-priced imports, and infrastructure problems, Tau has been in discussions with a number of manufacturers.
 
According to Minister Tau, Chinese and Indian investors are eager to work with Africa's current automakers, both by setting up new facilities and by utilizing excess manufacturing capacity.
 
He pointed out that businesses that are now using the semi-knocked-down (SKD) model have made a commitment to switch to full-scale local production, or complete-knocked-down (CKD) manufacture.
 
To secure the future of its automotive sector, the Africa government is also negotiating with international automakers such as Ford and Toyota.
 
Concerns including diminishing production levels, Chinese competition, tariff uncertainty, and the expensive switch to electric vehicles are the main topics of discussion.
 
Mahindra, one of the Indian companies, has stated that it intends to switch from SKD to CKD production in Africa in order to increase domestic production and establish a regional center for the export of automobiles.
 
With the help of the Africa government's efforts to develop a robust manufacturing base, the corporation has also expressed interest in setting up electric vehicle (EV) assembly facilities in Durban.
 
By partnering with Motus Holdings Limited, the biggest passenger vehicle retailer in Africa, to distribute its cars, Tata Motors, which had stopped exporting to the African market in 2017, is making a resurgence.

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