Exports keep automotive industry afloat

Vehicle exports for 2015 are not only on
target but are set to improve in coming
months, easing the pressure somewhat
on the strained automotive industry.
According to David Macrae, business
development manager for specialised
vehicle logistics company CAT-WWL,
whilst the automotive industry is
technically experiencing a recession
with month on month domestic sales
declining considerably since the first
quarter of the year, exports are
achieving new milestones and
holding the industry up.
“There is no denying that the industry
is facing some serious challenges which
impact all role players and stakeholders
across the board. But there is also the
bright side of the picture in that volumes
of export vehicles are doing extremely
well, with record numbers of exports
being achieved,” he said.
He told FTW there was a
definite shift by original equipment
manufacturers (OEM) to being more
export focused.
“This is where real growth in volumes
can be achieved, as the local new vehicle
market in the country is actually quite
limited compared to the production
capacity of the local manufacturers,” he
explained. “Another trend we are seeing
(as Transnet Freight Rail’s appointed
loading and offloading service provider),
is a positive increase in the utilisation of
rail as a viable means to transport new
vehicles. With additional rail capacity
being introduced and the continuous
push from all sectors to switch cargo
from road to rail, we anticipate that this
will continue to grow.”