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South Africa’s auto exports rose strongly in 2015 to nearly R152bn

29th April 2016

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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Automotive exports from South Africa increased by R35.8-billion – or 30.9% – to R151.5-billion in 2015, up from the R115.7-billion recorded in 2014.

The 2015 numbers mean that auto exports accounted for 14.6% of South Africa’s total export earnings, says National Association of Automobile Manufacturers of South Africa executive manager Dr Norman Lamprecht.

Lamprecht is also director of the Automotive Industry Export Council (AIEC) and author of the AIEC’s yearly Automotive Export Manual.

He says the gains recorded in 2015 exports must not all be chalked up to the weak rand, as export volumes to Europe showed large gains last year, compared with 2014, during a year in which the rand strengthened against the euro from R14.40 in 2014, to R14.14 in 2015.

Exports to dollar-based countries may have, however, “had a small influence” on the positive numbers.

The rand weakened from R10.84 against the dollar in 2014 to R12.75 in 2015, according to the Automotive Export Manual.

Lamprecht says 2015 was the second time that the local automotive industry exceeded the R100-billion export level.

South Africa, in 2015, exported a record of 333 802 right- and left-hand-drive vehicles, along with a range of automotive components. Exports went to 140 countries, with the value of exports to 30 destinations more than doubling on a year-on-year basis.

The UK with 101 704 vehicles, followed by the US, Australia and Japan, were South Africa’s top destinations for light vehicle exports in 2015. European Union (EU) members received 173 796 vehicles.

Mercedes-Benz South Africa was the country’s number one vehicle exporter, moving 93 500 C-Class models from its East London plant to markets abroad. Toyota was the top exporter in 2011, 2012, 2013 and 2014.

Catalytic converters, which reduce harmful emissions from vehicles, remained the most popular export component, followed by engines and parts, tyres and automotive tooling.

The domestic automotive industry’s top export markets (for both vehicles and components) in value terms were Germany, at R35-billion – up from R21.6-billion in 2014 – followed by the US, at R20.9-billion.

The importance of the trade arrangements that South Africa enjoys with the EU, allowing for duty-free vehicle and automotive component exports to the 28 countries in the region, the 15-country Southern African Development Community free-trade area, as well as the African Growth and Opportunity Act trade arrangement with the US, all served to enhance exports to these countries, notes Lamprecht.

He adds that automotive exports from South Africa totalled a meagre R4.2-billion in 1995. This means that exports grew by a compound yearly rate of 19.6% from 1995 to 2015.

The automotive industry, as the largest manufacturing sector in South Africa’s economy, accounted for 33.5% of manufacturing output in 2015 (up from 30.2% in 2014), contributing 7.5% to the country’s gross domestic product.

Also, although South Africa accounted for 64% of Africa’s vehicle production in 2015 (down from 68% in 2014), the industry remains relatively small in a global context and was ranked twenty-first in respect of global vehicle manufacturing, with a market share of 0.68%.


The value of vehicle imports into South Africa reached R61.6-billion in 2015, compared with R101.9-billion in vehicle exports, states the Automotive Export Manual.

Although the volume leader in respect of imports was India, with 91 588 vehicles flowing to South Africa during 2015, the value of Indian imports was less than half of those imported from Germany.

German imports include a number of premium brands, such as BMW and Audi.

Almost all the high-volume, entry-level models available in South Africa are manufactured abroad, mainly in India, says Lamprecht.

Volkswagen’s Polo Vivo is a notable exception.

Imports of original-equipment components, used to manufacture vehicles in South Africa, reached R79.6-billion in 2015 (up from R70.2-billion in 2014) and originated mainly from Germany, Japan and Thailand.

South Africa’s automotive industry currently has one of the most competitive trading environments in the world, with 55 brands and 2 872 model derivatives made available to consumers in 2015, says Lamprecht.

“This offers car buyers the widest choice-to-market-size ratio anywhere in the world.”

Similarly, on the light commercial vehicle side, there were 31 brands with 625 model derivatives to choose from in 2015.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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