Rand revs up motor industry exports

Ed Richardson MOTOR INDUSTRY export revenues are expected to grow by 33% in 2002. According to the annual report of the National Association of Automobile Manufacturers of South Africa, exports will reach R40 billion Ð up from R29.98 billion in 200l. This year's export projections exceed domestic sales turnover of about R38,7-billion in 2001. This is made up of motor component exports of about R24,5 billion and vehicle exports of about R15,5 billion. Motor component exports include catalytic converters, stitched leather components and seat covers, engines and engine parts, tyres, road wheels, motor tooling, wiring harnesses, silencers and exhausts and safety glass. The report emphasised the expected growth in exports was "with the assistance of an extremely competitive rand exchange rate". But it added: "The automotive industry in South Africa has developed into one of the most impressive business success stories in our country since 1994 and the industry can look forward with a degree of optimism". Improved domestic and export sales volumes contributed to a substantial recovery in industry profitability in 2001 and 2000, according to Naamsa. It points out that South Africa's export successes are being achieved despite a world slow-down. Global automotive production declined by 3.5% to reach 56,3 million units in 2001. In contrast, South Africa's automotive production Ð including vehicles produced for export Ð expanded by 13,9% during 2001 to reach 407 036 vehicles, placing the country in 18th place in international vehicle production ranking. South Africa accounts for 0.72% of global vehicle production. Europe remains the largest destination for SA automotive components, while vehicles were supplied to Europe, the US, Japan, Australia and the Far East. Naamsa reports that exports of South African produced cars and commercial vehicles, in aggregate terms, are projected to maintain strong upward momentum and should rise by about 24% in volume terms during 2002 to over 133 000 units from the 108 000 export sales of 2001. For 2003 exports of SA vehicles are projected to rise to about 163 000 units.