International Automotive Components Group is entering the auto market in South Africa through a joint venture that will supply parts to existing vehicle production.
IAC, with global operations based in Luxembourg, will work with Feltex Automotive of Durban, South Africa, in the venture. IAC will hold 51 percent of the venture and provide design, engineering and manufacturing expertise for interior components while Feltex will supply production and processing capacity, the companies said in a July 9 news release.
IAC-Feltex Pty Ltd. will initially begin at the Feltex plant in East London, South Africa, with production now supporting assembly plants making Ford, Mercedes-Benz, Toyota and Volkswagen cars. IAC will also bring additional equipment and capacity to the site.
South Africa is the biggest single source of auto production in Africa with 532,000 vehicles made in the country in 2012. Analysts with IHS Automotive estimate production will climb to 600,000 units by 2018, IAC said.
The South African government's Automotive Production and Development Programme calls for the country to support additional auto production in the coming years, with a target of 1.2 million vehicles made in South Africa by 2020.