South Africa leads global motor industry growth

ED RICHARDSON
SOUTH AFRICA was one of the “best performing markets internationally” for new vehicle sales in 2004, according to the National Association of Automobile Manufacturers of South Africa (Naamsa).
Total vehicle sales grew by 22%, to 449 603 vehicles compared to the 368 470 units sold during 2003. Taking account of sales of new vehicles not reported in detail through Naamsa, the industry achieved an all time record sales figure of over 481 000 vehicles.
This follows the best December sales on record in all categories – passenger cars, light commercials, and medium and heavy trucks and buses.
Exports were, however, down due to a combination of depressed world auto sales and the strong rand.
“However, South Africa’s role as a manufacturer and supplier of automotive components and vehicles has been firmly established and the momentum of vehicle exports in particular is expected to pick up substantially during 2005 as new export programmes are implemented,” says Naamsa.
There will be no easy ride for exporters, it adds. “In the longer term, the sustainability of the industry’s vehicle export growth performance in the context of global production over capacity and the strong rand will remain extremely challenging.”