THE CAR import market - for completely built-up (CBU) units - is expected to grow at a slower pace this year, according to the latest motor industry economic report by the Standard Bank's economics division.
Last year, overall growth was 37.7%, but this is expected to ease back to a 6.2% increase this year.
Imports in 1997 by NAAMSA (National Association of Automobile Manufacturers of SA) members totalled 25 549 units (32.2% up on 1996's 19 323) and, by the other importers outside the association, an estimated total of 30 000 (up almost 43% on the previous year's 21 000 units).
The expectation for this year is: NAAMSA - 26 000; non-association - 33 000.
The report attributed the expected reduction in growth to the already weakening car market in SA - with CBU imports actually having slackened in the fourth quarter of last year.
Another factor comes into play in this declining growth rate. The largest of the non-NAAMSA car companies is Hyundai (with an estimated import total of 21 000 units in 1997, and an expected 24 000 this year). The bank highlighted the fact that this company is moving more production out of its Gaborone plant this year and next, and these units are not reflected as CBU imports. Component imports, however, will rise in line with this change.
The bigger performers in the NAAMSA stable were Daewoo (with 8 032 units imported in 1997) and Samcor (3 438).
Lower tariffs have enabled importers to compete directly against the motor manufacturers, said the report. The import duty on CBUs has fallen - as part of the motor industry development programme - from an effective 115% in 1995 to 54% currently. This will be reduced further to 40% by 2002.
The report also headlined the fact that SA is now fifth largest motor manufacturing country in the world - immediately after France in the manufacturing league.
Local manufacture further shrinks car imports
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