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Vehicle export sales ‘decimated’ as a result of the three-week strike

18th October 2013

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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New-vehicle sales in South Africa decreased by 1.5% in September to 54 281 units, compared with the corresponding month last year.

Vehicle exports, however, were down 75.1% to 6 622 vehicles in September.

Commenting on the statistics, compiled by RGT Smart and issued by the Department of Trade and Industry, the National Association of Automobile Manufacturers of South Africa (Naamsa) says export sales “were decimated as a result of the three-week strike action experienced at seven major vehicle manufacturing plants, followed by industrial action in the automotive components industry”.

However, as roughly two-thirds of vehicles sold in South Africa were imported, the impact of the strike on the local market was muted.

During September, 39 792 new passenger cars left showroom floors – a 0.8% gain compared with the corresponding month last year.

Sales of new light commercial vehicles, bakkies and minibuses, at 12 014 units, were down 9.6%.

Sales of medium trucks and big vans were up 13.9% to 886 units, with heavy trucks, at 1 589 units, up 3%.

“The three-week strike in the vehicle manufacturing industry, with two manufacturers having endured a four-week stoppage, followed by the strike in the auto- motive components manufacturing industry, had a devastating effect on the industry, which accounts for approximately 30% of South Africa’s manufacturing output,” notes Naamsa.

“The strike action damaged South Africa’s status as a reliable supplier to international export markets and could well negatively affect future export contracts being awarded to South African automotive manufacturers.

“Labour stability was one of the most important considerations in the decisions by multnational corporations to allocate vehicles for production in South Africa.”

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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