SA vehicle exports powering up

New car exports from South Africa to the European market, in particular, are holding up strongly despite the ongoing recession in European Union countries. According to the National Association of Automobile Manufacturers of South Africa (Naamsa), South African original equipment manufacturers (OEMs) exported 27 338 vehicles in October – described as a “sharp increase of 6 387 units or an improvement of 30,5% compared to the 20 951 vehicles exported during October last year.” OEMs also accelerated production to catch up on lost volumes during the various strikes that affected the industry and exports showed a “massive increase of 118,1% or a gain of 14 804 vehicles over the month of September”. Naamsa is optimistic that exports will stay on track. “Above-average export sales should continue over the next few months,” it says. This success runs counter to the flow of vehicle sales in the European markets supplied by the likes of Volkswagen and Toyota South Africa. October was the sixth consecutive month in which new car sales in Western Europe dropped – examples being 17% in Germany and 19% in France year-on-year. Over 75% of all 3 Series BMWs produced at the Rosslyn plant are exported to the USA, Taiwan, Japan, Singapore, New Zealand, Hong Kong, Australia and Sub-Saharan Africa. Sales in many of these markets are in the slow lane. October new car sales in Japan are reported to have fallen to their lowest monthly level in 42 years – down 27% from October 2009. Australian sales are down, while those in New Zealand were boosted by a pending rise in General Sales Tax. Markets that continue to hold up include China, India, and the United States – an important market for Mercedes-Benz and BMW South Africa. India is showing the most consistent strong growth – leaving many Japanese, European and American auto manufacturers on the sidelines as they have not established a strong presence in what could be the fastestgrowing market over the next decade.