South Africa’s vehicle exports, crucial for the financial viability and sustainability of domestic Original Equipment Manufacturers (OEMs), remained robust and continued their upward momentum in 2023.
This was despite slowing global growth owing to geo-political tensions, supply chain disruptions, inflationary pressures and multi-year high interest rates in major export markets.
That’s according to the Automotive Business Council in its annual review of the sector’s performance.
“Although increased load-shedding and the logistical challenges at ports and the railway network left their mark on the industry’s performance in 2023, vehicle exports at 396 290 units in 2023 reflected a sound increase of 44 505 vehicles, or a gain of 12,7% compared to the 351 785 vehicles exported in 2022, exceeding the previous record of 387 092 units in 2019,” said Council CEO Mikel Mabasa.
Since two out of every three vehicles manufactured in South Africa are exported, vehicle exports remain imperative to support higher vehicle production volumes as well as higher employment levels, as employment in the vehicle manufacturing sector is generally linked to vehicle production, he added.
“The longer-term global economic outlook remains clouded by risks to the inflation trajectory, the recent Israeli conflict and the effects of climate change, but the vehicle export momentum is anticipated to remain upward for the year ahead,” Mabasa said.
Referring specifically to export sales in December 2023, the Council said the sector ended the year on a positive note and at 26 612 units reflected a gain of 317 vehicles or an increase of 1,2% compared to the 26 295 vehicles exported during December 2022.
As a result, 2023 ended on a record-high of 396 290 units.
