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Freight & Trading Weekly

Growing demand for vehicle exports into Africa

09 Aug 2019 - by Ed Richardson
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South African vehicle exports to North America declined markedly in 2018 – a year before president Donald Trump started protecting the United States auto industry through tariffs. According to Michael Mabasa, executive director and chief executive officer of the National Association of Automobile Manufacturers of South Africa (Naamsa), the decline from 2017 to 2018 can be attributed to the same BMW and MercedesBenz model ranges being manufactured in the USA as in South Africa. For the previous model ranges, South Africa was the sole supplier of some BMW and Mercedes models. In contrast, vehicle exports into Europe, Africa, Central and South America reflected growth in 2018, with Europe continuing to be the biggest customer base. Growth in vehicle exports into Africa suggests that demand from the continent is starting to recover, albeit from a low base, says Mabasa in his review of business conditions in the first quarter of 2019.

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