Dr Norman Lamprecht
The value of new-vehicle and automotive component exports from South Africa increased by R31.8-billion, or 18.1%, to a record R207.5-billion in 2021, up from R175.7-billion in 2020.
Last year’s vehicle and automotive component exports comprised 12.5% of total South African exports, down from the 13.9% recorded in 2020.
This is according to the Automotive Industry Export Council’s newly released 2022 Automotive Export Manual.
The report is compiled by the council’s Dr Norman Lamprecht, who is also the trade, exports and research executive at Naamsa | The Automotive Business Council.
Lamprecht says the domestic automotive industry last year rebounded sharply from the Covid-19-affected numbers seen in 2020, despite continued supply-chain disruptions, such as the global semi-conductor shortage.
However, he adds that the growth experienced since the initial shock of the pandemic has not yet been sufficient to see a return to Covid-19 levels.
The 2022 Automotive Export Manual shows that vehicle exports from South Africa increased to 298 020 units in 2021, up from the 271 287 vehicles exported in 2020, while export value increased by R17.1-billion, to R138.3-billion.
Automotive component exports saw a substantial increase of R14.7-billion, to a record R69.2-billion in 2021, up from R54.5-billion in 2020.
This was largely the result of record catalytic converter exports of R34.9-billion, especially to European markets that had to meet increasingly strict emission regulations, notes Lamprecht.
Catalytic converters comprised 50.4% of the country’s total automotive component exports, followed by engine parts, tyres and engines.
The South African automotive industry’s export destinations increased to 152 countries in 2021, up from the 147 destinations in 2020.
Record Investment
Lamprecht notes that South Africa’s seven major vehicle manufacturers invested R8.8-billion in 2021, the second highest yearly figure on record, while the component sector invested a record R5.7-billion last year.
In 2021, the broader automotive industry’s contribution to South Africa’s gross domestic product comprised 4.3% – 2.4% manufacturing and 1.9% retail.
The trading environment in South Africa remains extremely competitive compared with global standards, says Lamprecht.
In 2021 there were 43 passenger car brands and 3 077 model derivatives available in the local market – the greatest market selection to size ratio found globally.
Similarly, in the light-commercial vehicle (LCV) segment, there were 23 brands and 746 model derivatives available to the South African consumer.
Out of the top-ten selling vehicles in 2021, eight were South African-built passenger cars and LCVs.
The South African car parc currently stands at 12.96-million vehicles. It is an aging one, at an average of 10 years and four months in 2021, with 71% being six years or older.
Europe Remains Top Market
In 2021, passenger car and LCV exports accounted for 63.1% of total domestic light vehicle production in South Africa, with the remainder sold locally.
Nearly four out of every five new vehicles exported from South Africa were destined for Europe in 2021, with the UK, Germany, France, Italy and Japan the top export destinations.
Volkswagen Group South Africa, with its Polo model, maintained its position as top exporter for the third consecutive year.
Total South African vehicle production increased by 11.8%, from 446 215 units produced in 2020, to 499 087 units produced in 2021.
Indian Imports Surging
The top country of origin, in volume terms, for passenger cars and LCVs imported into South Africa in 2021 was India, at 129 364 vehicles, accounting for 49.3% of the total light vehicles imported.
This is a significant jump from 2020, when South Africa imported 87 953 units from India – or 43.2% of total passenger car and LCV imports.
India is a global production hub for entry-level and small vehicles, with South Africa currently in a major buying-down cycle as many consumers are being forced to tighten their belts.
The 2022 Automotive Export Manual also notes that battery electric vehicle sales in South Africa increased marginally from 92 units in 2020, to 218 units in 2021.