Germany has been the leading destination for exports of South African-built vehicles since 2016, with the numbers holding steady, while other markets have been in decline.
Europe accounted for R147.1 billion, or 54.3%, of the total automotive exports of R270.8bn in 2023 – or three out of every four vehicles exported.
According to the International Organisation of Motor Vehicle Manufacturers, vehicle exports to Europe grew by 19%, from 15 079 901 in 2022 to 17 898 967 in 2023.
The next-largest destination is the United States of America, followed by Japan, according to a study by TIPS (Trade & Industry Policy Strategies) senior economist Lesego Moshikaro-Amani and TIPS intern Nothembi Mahlangu.
South Africa has advantageous access to Europe and the United Kingdom markets through free trade agreements.Within the European Union (EU), Germany was the biggest exporter of vehicles to SA, followed by Spain and then the United Kingdom in 2022.
The German share is, however, declining, with India showing the biggest growth.
German exports of components to SA have decreased from a 47% share of the total in 2015 to 34% in 2022, according to TIPS.
SA exports of components for internal combustion engines are declining as Europe goes electric.
The EU is the main destination for a number of South African automotive component categories, including catalytic converters, radiators/parts, and clutches/shaft couplings
- Read the rest of this article in our Freight Features edition on "Europe".
