Vehicle export boom could create first surplus in years

THE SA vehicle export industry is in the pound seats, with the National Association of Automobile Manufacturers of SA (Naamsa) projecting that, during 2008, the automotive industry is on target to achieve a trade surplus for the first time since 1995. In fact, the association added, there could be a massive turnaround of close on R38-billion. According to its calculations, this would mean that the industry’s trade deficit of R34.6 billion in 2007 could be eliminated completely in 2008 – and a positive trade balance of R3 billion has been projected. This followed a record export month in July, when new vehicle exports hit a total of 28 269 units – a massive 85.4% improvement on the 13 022 units exported during July last year. And, for the first seven months of the year, export sales were up 59.5% year-on-year. Naamsa also assured FTW that this turnaround played a part in the strengthening of the currency, and cushioned SA vehicle and component producers from the severe downturn in the domestic market.