Export growth will offset declining local car demand – Naamsa

EXPORTS OF South African-made vehicles are expected to support the local manufacturing industry as local sales decline during 2008, according to the National Association of Automobile Manufacturers of South Africa (Naamsa). For 2008, industry export sales are projected to exceed 255 000 vehicles. This will boost the industry’s total domestic production from 542 000 vehicles in 2007 to about 620 000 in 2008. In contrast, 2007 industry exports at 171 260 vehicles reflected a decline of 8 599 vehicles or 4.8% compared to the 179 859 vehicles exported in 2006. The fall was primarily due to the fact that the Mercedes- Benz factory in East London had been refurbished during the year and as a result no vehicles had been produced for export for about five months during 2007, according to Naamsa.