Jul 27, 2012
Uncertainties about local vehicle exports remainBack
Africa|Engineering|Environment|Export|Ford|Technology|Africa|Europe|Algeria|Australia|France|Germany|Japan|South Africa|United Kingdom|United States|Automotive|Local Component Manufacturing|Manufacturing|Product|Service|Nico Vermeulen|Paul De Vantier|BMW 3 Series
© Reuse this
Naamsa director Nico Vermeulen tells Engineering News there is uncertainty regarding South Africa’s vehicle exports, owing to the impact of financial difficulties in Europe, as well as softer growth and uncertainty in international markets in general.
He notes the industry’s export performance will remain a function of the direction of the global economy.
As South Africa remains an export- orientated industry, global economic developments have been and will remain an important consideration that impacts on the local automotive industry’s performance.
Vermeulen notes, however, that any slowdown in exports to the eurozone could be offset by higher exports into the rest of Africa and Australia.
He adds that local vehicle export sales momentum should improve during the rest of the year, as several vehicle export programmes, such as the Ford Global Compact Vehicle Export Programme and the new BMW 3 Series export volumes, have been ramped up.
In June, 27 061 vehicles were exported, a 7% increase compared with the 25 294 vehicles exported in the same month last year.
The Automotive Industry Export Council (AIEC) expects more than 270 000 units to be exported and for automotive export levels to reach R100-billion in value this year.
Automotive Production Development Programme
The vision of the APDP, shared by government and industry, is to double vehicle production from about 600 000 units in 2006 to 1.2-million units by 2020.
The APDP will require substantial advances in terms of processes, competitiveness improvement, technologies and the scale on which the domestic industry currently operates.
The programme will emphasise local component manufacturing and seeks to shift the emphasis away from exports to achieving scale in the production of vehicles.
Further, government’s goal of creating five-million jobs by 2020 under the New Growth Path, as well as the National Planning Commission’s National Development Plan (NDP) aspiration to create 11-million jobs by 2030, will largely depend on the continuous successes of priority sectors, such as the local automotive sector, the AIEC’s Automotive Export Manual 2012 states.
The automotive sector is regarded as the leading manufacturing sector in South Africa, as it contributed 6.8% to the country’s gross domestic product last year.
The AIEC report highlights that the current global economic environment is dominated by intense competition for export markets, investments and technologies, making it important for South Africa to gain and maintain access to export markets.
Vermeulen says the industry exported vehicles to over 80 destinations in 2011. This figure will increase to more than 100 countries this year on the back of the Ford Global Compact Export Programme.
“The top markets were the US with 68 948 units, followed by the UK with 43 688 units, Algeria with 24 191 units, Japan with 22 475 units, France with 13 549 units and Germany with 8 362 units,” he notes.
In 2011, the 272 457 fully built vehicles exported from South Africa comprised 68.8% passenger cars, 30.9% light commercial vehicles and 0.3% medium and heavy commercial vehicles and buses.
Local new vehicle sales improved to 51 891 vehicles, an increase of 15.6% compared with the 44 876 units sold in June 2011.
Sales for the first half of 2012 remained 10.5% ahead of the comparable period in 2011.
Assisted by new model introductions, passenger car sales at 35 918 units, improved by 4 480 units, or 14.3% compared with the 31 438 new cars sold during June 2011.
Market intelligence provider for the automotive sector and Naamsa’s data processing service provider RGT Smart CEO Paul de Vantier says, while local vehicle growth levels are expected to taper off, single-digit growth is expected for the remainder of the year.
“We are forecasting growth of about 6% this year; however, some of the recent strong growth in the vehicle market could be the result of consumers buying ahead and taking advantage of the reduction in real car prices over the last few years,” he says.
Meanwhile, Naamsa says, despite indications that the local economy is slowing down even more, new vehicle sales continued to perform remarkably well under the influence of factors such as historically low interest rates, ongoing improvement in vehicle affordability, continual new model introductions, as well as improving demand for credit by households and businesses sup- porting the local market.
Edited by: Chanel de Bruyn© Reuse this
Creamer Media Senior Deputy Editor Online
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Automotive Industry News
Paperboard and corrugated pallet manufacturer Kimmo, which previously traded as CX Pallets, manufactures honeycomb paperboard, an extremely thick and sturdy material for use in protective transport packaging. Having invested in state-of-the-art honeycomb paperboard...
With the launch of a new child seat concept, Swedish vehicle manufacturer Volvo Cars’ design team has completely reimagined how children can travel safely in the future.
Updated 44 minutes ago President Jacob Zuma’s State of the Nation Address (Sona) showed a breakdown of trust between government and the population of South Africa, according to former Congress of South Africa Trade Union (Cosatu) general secretary Zwelinzima Vavi “Yesterday’s Sona address...
Updated 2 hours 4 minutes ago Atterbury Property Developments is developing a R850-million, 103 000 m2 industrial and business park at the intersection of the N3 highway and Rand Airport road, next to the Elandsfontein interchange. Atterbury designed the park on a site it acquired in Gosforth...
Updated 2 hours 23 minutes ago JSE-listed Pioneer Foods expects a muted first half, largely owing to an exceptional performance in the first half of the prior year, where adjusted headline earnings a share for continuing operations grew by 39%. The company was currently dealing with a weak rand...
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
This Week's Magazine
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.