In the wake of the recent announcement by President Cyril Ramaphosa of South Africa’s Economic Reconstruction and Recovery Plan, the National Association of Automobile Manufacturers of SA (Naamsa) has flagged cost and efficiency in transport and ports systems for export-oriented industries as a critical focus.
“Cost and efficiency improvements in logistics costs would enhance the automotive industry’s international competitiveness and is also one of the key pillars under the industry SA Automotive Masterplan 2021-2035 whose objective includes producing 1.4 million vehicles per annum by 2035, doubling manufacturing, and transforming the industry value chain, amongst others,” says the organisation.
It has expressed grave concern about the impact of grey imports where approximately 300 000 of the 12.7 million vehicles on South Africa’s roads are illegally operated, which could potentially result in the fiscus losing around R3.8 billion per annum in tax collection.
“New vehicle sales are linked to the strength of the economy and for the year to date new vehicle sales contracted by 33.4% or 132 878 units compared to the corresponding period last year owing to Covid-19 market contraction.”
According to a statement from the organisation, as part of Covid-19 mitigation strategies, Naamsa has commissioned a study aimed at exploring ways to stimulate new vehicle demand in South Africa.
“The Medium-Term Budget Policy statement, which has been postponed to the 28th October, should provide more directive on the plans for the priority programmes set out in the economic recovery strategy document and linkages to fiscal consolidation.”