Auto industry growth forecast bodes well for SA

Ed Richardson WHILE MANY in the auto industry are focusing on over-capacity and tough competition, a British forecasting company predicts that the world is going to need more vehicle plants, not less. It should be good news for South African auto assemblers, as the next area of growth is expected to be the developing world, says Max Pemberton, editor of Autintelligence’s “Managing the Future Ð World Vehicle Forecasts and Strategies To 2020.” “Demand exists - and continues to grow - and the suppliers will continue to find ways to meet that demand. In the developed world, there is a place to discuss GDP, disposable income, the economic outlook and many more macro concerns, but the real driver of the vehicle market in this well-heeled region is, and will continue to be, the replacement cycle augmented by new, organic demand,” he says. In the developing world, the main drivers of demand are low ownership levels combined with rapidly growing personal incomes, the development of a used car market, the availability of finance, and exposure to the consumer activities of the people in the developed region.