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Africa|Automotive|Export
Africa|Automotive|Export
africa|automotive|export

Pace of imported-car sales slowed last year for first time since 1999

3rd April 2015

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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The percentage of imported passenger cars in the mix of new cars sold in South Africa last year dropped year-on-year for the first time since 1999.

According to KPMG data, in 1999, 25% of all new cars sold locally were imported, down from 26% in 1998. Imported sales then grew rapidly, to 50% of sales in 2005, 69% in 2011, and 75% in 2013.

Imported cars made up 72% of new-car sales in South Africa in 2014, says KPMG South Africa Automotive Sector head Gavin Maile.

He says imports dropped last year, owing to steep price increases from importers, compared with local manufacturers, largely brought about by the weak rand.

“I suspect that, with the rand weakening further, we will see similar pressures this year,” Maile notes.

Cars produced and sold locally excluding bakkies, reached 123 000 units in 2014, with imported cars totalling 318 000 units.

KPMG forecasts imported cars to reach a level of 325 000 units in 2015, and locally built cars to sell at a level of around 130 00 units.

Total new-vehicle production, including bakkies and vehicles for the export market, reached 566 083 units in 2014, with exports at 276 873 units.

The KPMG forecast for 2015 is for local production to number 627 500 units in 2015, with exports jumping to 321 500 units.

Maile says these figures are dependent on South African plants being open for around 50 weeks a year, and not closed down by load-shedding or labour action.

Toyota was the number one vehicle producer in 2014, at 142 739 units, followed by Volkswagen at 113 677 units and Ford at 76 373 units.

Toyota was also the country’s top exporter, at 64 789 units, followed by BMW at 60 234 units and Volkswagen at 54 618 units.

South Africa’s top export destination was the UK, at 57 739 units. In Africa, it was Algeria, at 15 356 units – almost half the 30 000 units exported to the North African country last year.

South Africa sold 644 523 new vehicles in 2014, with passenger car sales at 439 000 units, bakkies and minibuses at 174 000 units and the truck market at 32 000 units.

While Maile’s data shows sales for 2015 inching up to around 667 000 units, he says this does not take into account any drastic weakening of the rand, “which will have an impact”.

He believes the South African new- vehicle market may, in the end, be slightly down in 2015, compared with 2014.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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