Vehicle production on a roll

The freight industry will be given a boost by the powering up of South African vehicle production, which is expected to resume its climb, reaching 595 400 by 2012, according to projections by the National Association of Automobile Manufacturers of South Africa (Naamsa). Of these, 321 400 vehicles are expected to be exported, with a little more than that (around 340 000) imported. This will help balance the ro-ro traffic. Naamsa expects the total local market (cars, commercial vehicles and heavy trucks) to only reach the 2008 level of 533 387 vehicles in 2012, with projected sales of 589 000. This will make South Africa a net exporter of vehicles, as the projected production is 595 400 vehicles. Domestic sales are expected to accelerate this year from the 395 000 in 2009 to about 451 000 in 2010 – an increase of around 14,0%. “However, the improvement will be off a very low base,” says Naamsa director Nico Vermeulen. Original Equipment manufacturers are gearing up for the expected growth by investing over R4.5-billion this year in new plant and equipment.