Johannesburg – South Africa’s automobile sector is banking on economic recovery to drive growth in the sector.
Total vehicle sales fell 13.9% year on year to 34 784 units last month, as the pandemic continued to weigh on the South African car market.
On a monthly basis, vehicle sales declined 7.2%. Mikel Mabasa, the CEO of the National Association of Automobile Manufacturers of South Africa, said all the automotive key performance indicators for 2020 were undoubtedly under pressure due to the most turbulent year in the history of the motor industry globally and for SA.
“Our sector was shaken to its very roots as new vehicle sales in 2020 declined by 29.2% and vehicle exports by 29.9%. Considering that the automotive sector contributes 6.4% to the country’s economy, accounts for 27.6% of manufacturing output and accounts for 15.5% of total South African exports, the impact of Covid-19 on the industry contributed a further devastating blow to the country’s already recessionary climate in the country,” Mabasa said.
It was expected that the Automotive Masterplan 2035, which is due for implementation from July 2021, will create a framework to secure even higher investment and production levels, and will continue to provide multinational vehicle and component companies the consistency they need to invest confidently in the country.
In his State of the Nation Address on Thursday, President Cyril Ramaphosa said one of his administration’s focus areas would be getting the industry back to full production, implementing the black industrialist fund and working on a new platform for expanded auto trade with the rest of the continent.
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