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A supply chain is made up of all the businesses and persons involved in the manufacture of goods, from raw materials to finished items. Logistics include shipment, storage, delivery services, transportation, and commercial shipping.
The thorough planning and execution of a complex automobile transportation operation is referred to as automotive logistics.
It includes all forms of transportation, including rail, truck, and maritime. Automotive logistics refers to the transportation of auto components, replacement parts, and entire vehicles from supplier to customer, including transport, warehousing, unloading, loading, distribution, and data processing as the key functions.
Its goal is to give the highest possible quality of service at the lowest feasible operating cost, and it is distinguished by its complexity, competency, and major infrastructure and labour investment.
The automotive logistics sector is typically regarded as the largest, most advanced, and professional logistics industry. Logistics includes production logistics, manufacturing and distribution logistics, automobile sales logistics, supply logistics, and recycling logistics.
The automotive supply chain includes all entering and exiting items, products, and equipment related to your company activity. This means that the dependability and stability of vehicle manufacturing logistics are vital to the success of your organisation.
The South Africa Automotive logistics market accounted for $XX Billion in 2022 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2023 to 2030.
SA’s auto industry faces a big threat from the global shift towards EVs.A turning point in the development of the global car manufacturing industry occurred when the European Parliament authorised the ban on all internal combustion vehicles.
With Europe accounting for more than 70% of local industry exports last year, this poses a serious concern as South Africa’s main market for exporting vehicles.
It has been extremely difficult for traditional OEMs (or original equipment manufacturers) like Ford, GM, Mercedes or Volkswagen to fundamentally alter their way of thinking about producing cars, despite the fact that leading car manufacturers like Mercedes-Benz, Volkswagen, and BMW report being on track to phase out internal combustion engine (ICE) vehicles.
According to Mark Lacey, head of resource equities at multinational asset management Schroders, the supply chain has fundamentally changed for these industries.
International automakers will be under pressure to change as a result of demand from the investor and regulatory communities, and as one of their suppliers, South Africa will need to soon follow suit.However, the journey will be challenging. Local regulatory restrictions are one barrier.
