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SA’s auto export earnings rose to record R115.7bn in 2014 as rand weakened

8th May 2015

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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The South African automotive industry’s export earnings for 2014 increased by 12.7% to a record R115.7-billion, compared with the R102.7-billion reported in 2013.

This is according to South Africa’s Automotive Export Manual (AEM) 2015, compiled by Dr Norman Lamprecht on behalf of the Automotive Industry Export Council, where he serves as director.

This was the second time the industry exceeded the R100-billion mark – the figure includes components and vehicles.

However, 2014 was also the year in which the rand continued to weaken significantly against a number of major currencies.

In 2013, the rand averaged R12.82 against the euro, declining to R14.40 in 2014. In a similar trend, the rand was valued at R9.65 against the dollar in 2013, but averaged R10.84 in 2014.

“The rand does have an effect on the numbers,” says Lamprecht.

“Exports to especially Europe improved as the top markets performed better, but the rand also helped the numbers. So 2014’s export result is a combination of more exports and a weak rand.”

The export manual shows that the local automotive industry exported vehicles and components to 148 countries in 2014, with the export value to more than 25 countries doubling on a year-to-year basis.

The industry’s top export markets, in value terms, were Germany, at R21.7-billion, followed by the US, at R17.1-billion.

The UK, with 57 739 units, was the top export market for South African manufactured vehicles.

Interesting parts and vehicle export markets include Mongolia, Guadeloupe, Martinique, Reunion, Iceland, St Helena, New Caledonia and Iran.

The import value of new vehicles into South Africa reached R57.2-billion in 2014, compared with R70-billion in vehicle exports.

Lamprecht believes vehicle import values and volumes declined in 2014 in line with the contracting domestic new-vehicle market.

The imported vehicle volume leader was India, with 95 940 units exported to South Africa. However, as most of the vehicles imported from this country are entry-level or small vehicles, the 2014, value of Indian imports was less than half the value of those imported from Germany.

Lamprecht highlights that South African consumers remain spoilt for choice when it comes to new vehicles.

In 2014, there were 55 brands in the market, and 4 406 model derivatives to choose from – the widest choice-to-market-size ratio anywhere in the world.

An interesting statistic from the AEM is that diesel vehicles made up 30.8% of all new cars and light commercial vehicles sold in South Africa in 2014, compared with 24.5% in 2010.

The catalytic converter, which reduces harmful emissions from vehicles, remains the most popular component exported from South Africa.

Catalytic converter exports were valued at R19.5-billion, or 42.7% the value of all parts exported in 2014, up from the R17.64-billion recorded in 2013.

Engine parts were second, at R3.73-billion.

Total automotive components exports from South Africa reached R45.68-billion in 2014, up from 2013’s R42.1-billion.

The AEM found that the automotive industry accounted for 30.2% of South Africa’s manufacturing output, also contributing 7.2% to the country’s gross domestic product.

South Africa built 68% of Africa’s vehicle production in 2014, but had a global vehicle manufacturing share of 0.63%.

 

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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