SA vehicle makers get boost from Africa sales

Vehicle exports from South Africa into the rest of Africa grew almost 20% last year, more than making up for a decline in sales to traditional, recession-hit markets in the European Union and the U.S. This bodes well for motor manufacturing and demonstrates that South Africa remains a gateway for trade in Africa.

Despite the European woes, the South African car making  industry is, according to the RGT Smart data, in an upward swing this year. Its figures suggest that a combination of good growth in certain African markets and the introduction of the Automotive Production and Development Programme this year have combined to shelter the industry from poor consumer spending in austerity-hit Europe.

Naamsa director Nico Vermeulen said on Monday it was likely that South Africa would export more than 100,000 vehicles a year into the rest of Africa “within two years”.