Exporting

SA vehicle exports to rise sharply

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20 February 2006

South African vehicle exports in 2006 are projected to rise by 47% over 2005, following a record year for South African vehicle sales which analysts attribute to the growing strength of the economy.

The National Association of Automobile Manufacturers of SA (Naamsa) says it expects South Africa's auto manufacturers to export an estimated 205 500 vehicles in 2006 - up from 139 912 in 2005 - with this figure rising to 240 500 in 2007.

Vehicle production is the second-biggest industry in South Africa's manufacturing sector, with vehicles now accounting for nearly 7% of the country's exports.

Both vehicle exports and domestic sales in 2005 were driven by commercial vehicles - a good indicator, says McCarthy Motor Holdings chairman Brand Pretorius, of fixed investment in the economy.

Sales of light commercial vehicles in 2005 increased by 25.9% over 2004, of medium commercial vehicles by a massive 41.8%, and of heavy commercial vehicles by 24.5%.

Overall, domestic new vehicle sales in South Africa reached an all-time record of over 617 000 in 2005 - up from 480 879 units in 2004 and 381 456 units in 2003 - making the country one of the best performing automobile markets internationally.

Naamsa executive manager Norman Lamprecht says growing sales of heavy and medium commercial vehicles indicate the confidence shown in the South African economy, adding that Naamsa fully expects the growth trend to continue.

Pretorius attributes the growth in sales to a number of favourable macroeconomic factors, among them a projected 5% growth in gross domestic product (GDP) for 2005. "South Africa is currently in the longest upward business cycle since 1945, having experienced 28 consecutive quarters of positive growth," Pretorius says.

This has been accompanied by an increase in South Africans' disposable income in real terms - in particular, by an increase in the purchasing power of black South Africans.

SouthAfrica.info reporter