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9588 Autolive 84.Indd 15 000 SUBSCRIBERS www.autolive.co.za Issue No. 84 | 29 April 2016 MOTOR INDUSTRY EXPORTS EXCEL Dr. Norman Lamprecht, Executive Manager of the South Africa National Association of Automobile Manufacturers of Automotive SA (NAAMSA) as well as Director of the Automotive Industry Export Council (AIEC) has provided AutoLive with a special preview of the information contained Export in his annual Automotive Export Manual publication, which he produces on behalf of the AIEC. Manual Th e Automotive Export Manual – 2016 – South Africa is an annual publication produced and compiled by the Automotive Industry Export Council (AIEC) – the recognised source of South African automotive trade data. Th e 2016 publication, as well as the previous nine publications since 2007, provides a comprehensive guide on the export and import performance of the South African automotive industry under the previ- 2016 ous Motor Industry Development Programme (MIDP) and current Automotive Production Development Programme (APDP). Th e aim of the manual is to identify and report on the major automotive export destinations, the major countries of origin, the main automotive export trade blocs, the most important automotive products being exported and imported, the top growth markets and products as well as the impact of the trade arrangements enjoyed by South Africa on automotive trade patterns. For 2015, total automotive industry exports in- creased by R35,8 billion or 30,9% to R151,5 billion from the R115,7 billion in 2014 and comprised a signifi cant 14,6% of South Africa’s total export earnings. Th is is the second time that the industry exceeded the R100 billion export level. A record of 333 802 right- as well as left -hand drive vehicles, along with a diverse range of automotive components, were exported to 140 coun- tries with the export value to 30 destinations more than doubling on a year-on-year basis. Th e UK with 101 704 vehicles, followed by the US, Australia and Japan were South Africa’s top destinations for light vehicle exports continued on page 2 Page 5 Page 10 Page 23 Car prices in KPMG predicts tough Festival of the 1960s times ahead Motoring update Subscribe for free @ www.autolive.co.za Page 2 Editor and General Manager continued from previous page Russia, India and China, also feature Liana Reiners in the publication. [email protected] in 2015. Mercedes-Benz, with its new Lamprecht stated that the total 083 407 4600 C-Class model, was the pace-setter value of automotive exports in 1995 in terms of exported vehicles in amounted to meagre R4,2 billion Contributors 2015. Catalytic converters, the main compared to the R151,5 billion in purpose to reduce harmful emis- 2015, growing by a compounded Roger Houghton sions from vehicles, remained the annual rate of 19,6% between 1995 [email protected] most popular component exported to 2015. Th e automotive industry, as 082 371 9097 followed by engines and parts, tyres the largest manufacturing sector in and automotive tooling. the country’s economy, accounted for Stuart Johnston Th e domestic automotive 33,5% of manufacturing output and [email protected] industry’s top export markets in 7,5% to the country’s GDP in 2015. 083 450 9255 value terms were Germany with Although South Africa R35,0 billion followed by the USA Dr Norman Lamprecht. produced 64% of Africa’s vehicle Advertising Sales with R20,9 billion. Th e importance production in 2015, the indus- Liana Reiners of the trade arrangements that South there were 31 brands with 625 model try remains relatively small in a st [email protected] Africa enjoys with the European derivatives to choose from in 2015. global context and was ranked 21 in Union, allowing for duty free vehicle Imports of original equipment respect of global vehicle manu- 083 407 4600 and automotive component exports components, used to manufacture facturing with a market share of to the 28 countries in the region, the vehicles, amounted to R79,6 0,68%. Currency volatility, logistics Address the 15-country Southern African billion and originated mainly from costs and international economic 237 Rigel Avenue Development Community (SADC) Germany, Japan and Th ailand. developments are challenges the Waterkloof Ridge free trade area as well as the AGOA Capital intensive and complex com- industry has to confront on a daily Pretoria trade arrangement with the USA, ponents such as engines, gear boxes basis and which fall outside of the PO Box 914 005 enhanced exports to these countries. and electronic interiors components control of the automotive policy Th e import value of vehicle are mainly imported where the regime. Th e automotive indus- Wingate Park imports amounted to R61,6 billion in relatively low volumes at present try’s signifi cance is premised on 0153 2015 compared to the R101,9 billion do make the projects economi- its export earnings, investments, 012 460 4448 of vehicle exports. Although the cally viable in the domestic market. employment, contribution to the volume leader in respect of imports However, signifi cant value adding economy and multiplier eff ect. Th e Website was India with 91 588 units, the processes take place in South Africa vision under the Automotive pro- www.autolive.co.za value of Indian imports, however, where aft er the vehicles are subse- duction Development Programme was less than half of those imported quently manufactured on behalf of (APDP), implemented in January Facebook from Germany, which included the parent companies abroad and ex- 2013, is to double vehicle produc- www.facebook.com/pages/AutoLive premium brands. Almost all of the ported to global markets. Exchange tion in the country to around one high-volume entry-level models rate weakness supported exports million units per annum by 2020 © 2015 WCM Media CC available in South Africa are manu- but placed signifi cant pressure on with an associated broadening and factured overseas, mainly in India. imported vehicles and imported deepening of the component basket Production Volkswagen’s Polo Vivo and General content during 2015. in the country as well. Th is will Marketing Support Services Motor’s Chevrolet Spark, which are ensure that South Africa’s market +27 (0)12 346 2168 manufactured in South Africa, are Signifi cant value adding share would increase to around [email protected] the two exceptions. Th e industry in processes take place 1% of global vehicle production, South Africa currently has one of the which would assist the industry in in South Africa. Disclaimer most competitive trading environ- being considered for ongoing and While reasonable precautions have ments in the world with no fewer expanding future investments in been taken to ensure the accuracy than 55 brands and 2 872 model Potential opportunities for the country. Lamprecht stated that of the advice and information given derivatives for consumers to select the domestic automotive industry close collaboration and alignment to readers, neither the editor, the from in 2015. Th is off ers car buyers relating to trade arrangements such between all industry stakeholders proprietors, nor the publishers the widest choice to market size ratio as the “Cape to Cairo” free trade are imperative to ensure that the can accept any responsibility for anywhere in the world. Similarly area, including 26 African countries, APDP’s 2020 vision realises. any damages or injury which may on the light commercial vehicle side as well as South Africa joining the Th e publication is available from arise therefrom. BRICS coalition along with Brazil, the NAAMSA offi ces. ■ MONTHLY SALES STATISTICS The growing amount of advertising in AutoLive has made it necessary to relocate the four pages of detailed monthly vehicle sales analysis to the website www.autolive.co.za. CLICK HERE to access Subscribe for free @ www.autolive.co.za Page 3 Economy and Political Upheavel Editor’s Note Hit New Vehicle Sales BY ROGER HOUGHTON Exports of built-up units from SA in I came across an interesting March were 18.5% below the fi gure for the article on the Automobile same month last year, with much of this Association of SA’s website Th e continuing slide in the local economy, drop due to the fact that Toyota’s Hilux recently. It addresses an issue political upheaval and a weak Rand are export volumes were comparatively low I oft en wonder about, namely aff ecting business and consumer confi dence at 1 484 units. Th is is due to the fact that a breakdown of how the fuel adversely. All these factors had a nega- exports into African countries are still being price is set. tive impact on new vehicle sales in March. ramped up, while exports to Europe only At the beginning of April, Admittedly this was a month with Easter start in the second half of the year. the cost of a litre of fuel went holidays too, but few industry commenta- However, NAAMSA is confi dent that up by between 81 and 98 cents a litre, depending on the fuel tors would have expected a month-on- the exports will increase suffi ciently in you use. Th e 30 cents/litre increase to the Fuel Levy, announced month fall of 14% in the total with only the remainder of the year to reach a pro- by Finance Minister Pravin Gordhan during his budget speech 47 631 units retailed. jected new record total of 376 000 units in February, was also added. Dealer sales were strong at 84.4%, but for 2016. Th is additional 30 cents/litre moved the Fuel Levy – a tax by contrast government sales were weak Th is is what NAAMSA had to say about collected on every litre of fuel sold – from R2.55 to R2.85 a li- at only 3.3%.
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