New-vehicle exports from South Africa into the rest of Africa continued their steep decline in 2016, notes the National Association of Automobile Manufacturers of South Africa (Naamsa) in its newest quarterly business review.

Export sales of new vehicles declined from 78 787 units in 2013 to 61 839 units in 2014, 42 234 units in 2015 and 21 564 units in 2016.

In contrast, exports to Europe continue to grow, increasing from 79 819 units in 2013 to 195 764 units in 2016. Exports to Asia also jumped – from 36 482 units in 2013 to 47 616 units in 2015.

Naamsa notes that vehicle exports to Europe increased from a “high base” in 2016, while export sales to Asia showed “remarkable growth”.

The decline in vehicle exports to Africa has been spurred on by “a combination of factors, including ad hoc duty increases (Nigeria and Zimbabwe), regulatory restrictions (Algeria) and continued weak economic conditions in most African countries”.

Naamsa’s newest business review also notes that employment in the industry has been declining.

Industry employment as at December 31, 2016, totalled 29 489 people, which is 1 900 fewer, compared with the 31 389 people employed at the end of the third quarter of 2016.

Naamsa says fourth-quarter 2016 employment levels declined “owing to the layoff of temporary workers at three major industry plants”.

The average monthly industry employment number for 2016 was 30 953 people, compared with 2015’s 31 260 people.

Naamsa notes that South Africa’s seven major car and bakkie manufacturers, as well as various truck producers, are expected to have a capital expenditure budget of R8.1-billion in 2017, up from R6.4-billion in 2016.

Naamsa expects total domestic production to reach 640 200 units in 2017, up from 2016’s 599 004 units.

Exports are expected to grow from 344 859 units in 2016 to 375 200 units in 2017.