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naamsa warns port, rail challenges will negatively impact on South Africa's automotive sector

1st December 2023

By: Creamer Media Reporter


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Industry organisation naamsa | The Automotive Business Council says the current logistical challenges at South Africa's ports and across the entire freight rail network in the country are impacting negatively on the vehicle production landscape and on new-vehicle sales in South Africa.

"The current challenges will soon have a devastating domino impact on the entire auto value chain. While supply chains are gradually stabilising globally and semiconductor shortages are anticipated to ease, our erratic logistical challenges will become the single biggest risk for the sector should we not urgently address many of the leadership and systemic structural challenges experienced by Transnet.

"The sector's productivity relies heavily on infrastructure investment, sustainable energy supply and the revitalisation of South Africa's ports, rail lines and roads. A conducive framework is crucial to support these critical elements," naamsa stresses.

Meanwhile, South Africa recorded its fourth consecutive monthly decline in new-vehicle sales in November, which naamsa CEO Mikel Mabasa attributed to the return of Stage 6 loadshedding and supply chain disruptions at Transnet.

All new vehicle market segments declined, with a boost coming from the export side. New-vehicle sales fell by 13.4% year-on-year to 43 281 units.

Aggregate export sales continued in line with general industry expectations and increased by 23.5% to 41 008 units in November.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



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