Car Exports Motor To Record Highs
The latest statistics released by the National Association of Automobile Manufacturers in South Africa (Naamsa) revealed a record 45.5% improvement on vehicle exports for the first four months of 2008 when compared to the same period in 2007. Executive Manager of Naamsa Norman Lamprecht says that much of the growth seen over the first few months of 2008 can be attributed to export programmes implemented by local manufacturers such as Toyota and Mercedez Benz.
“The Toyota Corolla export programme commits to exporting 147 000 vehicles this year – and that’s just one manufacturer,” says Lamprecht. “We can expect to see exports reaching record highs every month this year.”
Lamprecht emphasises that while a weaker Rand may help exports, it is not as big a contributing factor as it is often made out to be.
“A weaker rand certainly gives us a little more breathing space with regards to things like logistics costs and productivity, but you can’t base competition on fluctuating currencies.”
“Investment decisions are based on commitments to export programmes made six or seven years in advance,” he adds.
Last year, the South African motor industry exported 171 238 vehicles. Lamprecht’s forecast for 2008 is in the region of 285 000 vehicle exports. “And we are perhaps being a bit modest,” he adds.
The motor industry remains one of South Africa’s biggest business and foreign trade success stories.
According to Naamsa’s 2007 Annual Report, exports of South African-produced motor cars have grown from 8 976 vehicles exported in 1995 to over 170 000 in 2007.
The industry’s success has primarily been driven by the Motor Industry Development Programme (MIDP). Since its inception in 1995 the MIDP has effectively improved the motor industry’s international competitiveness partly through a series of investment incentives. Due to expire in 2012, the MIDP is currently under review.
“The purpose of this review is to look beyond 2012,” says Lamprecht. “In light of the steep competition, South Africa’s motor industry needs a programme that will support a fight for investment and see us reach our goal of doubling our new vehicle sales to 1 million by 2020.”
“This review is critical for the industry in that it must speak to the industry’s 2020 vision,” he adds.
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