Vehicle sales stuck in slow lane

Following a dispiriting end to 2008, many markets and car producers are expected to stay in the slow lane during 2009. The freight and transport industry in South Africa and the rest of the world will be affected by lower volumes of components and fully built up units. The direct implications for South Africa, according to the National Association of Automobile Manufacturers of South Africa (Naamsa), is that “the number of vehicles likely to be exported by the industry during calendar 2009 could decline by about 27.5% principally to the major export markets in the Euro zone, Japan and the United States. However, exports into African markets, which accounted for export sales of about 70 000 vehicles last year, are expected to show modest growth”. But there is light at the end of the tunnel: “Auto companies will be actively preparing for the upturn in the industry, which is expected in 2010. They will continue to invest in new product development and even new capacity where appropriate,” says Michael McKenzie, global automotive analyst, PricewaterhouseCoopers.