Prepare for a downturn in new vehicle exports

New vehicle exports, particularly to the developed markets, will experience pressure in 2009 and will probably be lower for the year as a whole compared to the 2008 expected total export figure of around 278 000 vehicles. “The volatility in global financial markets and the dramatic and extreme swings in the rand exchange rate render planning extremely difficult,” said Naamsa director Nico Vermeulen. “Bearing in mind that exports of automotive components by OEMs (original equipment manufacturers) and component suppliers have been growing recently at an annual compound rate of 30% by value, and taking account of the competitive exchange rate, Naamsa anticipates that component exports will continue to register growth in value terms, but also at a lower rate. New component export business could however change this scenario and boost future export business,” he said.