‘Solid platform’ for growth of SA auto industry

South Africa’s automotive industry has driven into 2011 in a much more positive frame of mind, with plans to invest billions of rand. “The automotive industry’s performance in 2010 and the momentum carried over into 2011 represents a solid platform for the industry to build on this year,” says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its comment on the February sales. Total industry sales for the first two months of 2011 were 21.9% ahead of the corresponding two months in 2010. Naamsa expects total domestic sales in 2011 to grow by 10% to 15% in volume terms compared to 2010. Exports are expected to reach 300 000 units in 2011. The confidence of the motor industry is shared by the logistics chain. Medium and heavy truck sales in February were up by 271 units or 45.9% in the case of medium commercials, and 225 units or 19.3% in the case of Heavy Trucks and Buses compared to the corresponding month last year. Light commercial, bakkie and minibus sales were 11.3% up on February 2010. At an infrastructure level, Grindrod’s car terminal in the port of Maputo is set for continued expansion, with the company predicting in its annual report for 2010 that volumes are expected to grow as the local auto industry recovers. At least three original equipment manufacturers are evaluating Maputo as an export hub. This will move volumes mainly from the Durban car terminal. The motor industry itself is planning to invest nearly R4 billion in production facilities, land and buildings, and support infrastructure in 2011, and a further R4.5 billion in 2012. “The increase in capital expenditure during 2010 and planned for 2011 may be attributed to the finalisation of the Investment Guidelines and Investment Projects by manufacturers to gear up for the impending Automotive Production and Development Programme (APDP),” says Naamsa director Nico Vermeulen.