SA increases share of world market by 7.6%

SOUTH AFRICA’S share of global new vehicle production has grown from 0.61% in 2 000 to 0.85% in 2 006, according to the South African Automotive Yearbook. The country made most of the nearly 600 000 new vehicles produced in Africa during 2 006. South Africa increased its share of the world market by 7.6% through higher growth than the world average. Vehicle production in South Africa grew by 11.9% between 2 005 and 2 006, while world growth was 4%. Locally assembled vehicles and manufactured automotive components were exported to over 100 countries in 2 006. Major markets, in order of importance, are Europe, Japan, the United States, the United Kingdom and Australia. Almost 70% of component exports in terms of value – the majority being catalytic converters – are sent to the European Union. Germany, Spain, the UK, the US, France, and sub-Saharan Africa are the leading destinations for automotive components. The US, Japan and Australia are the top three destinations for passenger cars. South Africa is competing in an exceedingly tough market. According to the Paris-based International Organisation of Motor Vehicle Manufacturers (OICA),69 million cars, vans, trucks and buses were made in 2006. This represents an increase of 2 661 708 units produced compared with the 66 551 047 new vehicles produced globally during 2 005. Of the new vehicles, 46 008 847 were passenger cars, 17 2 19 185 light commercial vehicles, heavy trucks 2 980 619 and buses 2 56 758. The biggest markets are in North America, Europe and Japan, which represent more than 70% of demand, 85% of industry revenues and 90% of SA increases share of world market by 7.6% Fast Facts ● 70% of component exports sent to EU ● US, Japan, Australia the top markets for passenger cars ● Locally assembled vechicles and components exported to over 100 countries in 2 006 ● SA made most of nearly 600 000 new vechicles produced in Africa in 2 006 industry profits. The balance is changing, however. The Asia- Oceania region produced 2 8.2 million vehicles in 2006 compared with 2 5.8 million in 2 005 – a 9.3% growth.