The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced that it’s looking at expanding its market in Africa to lift localised sales figures, currently driven down by South Africa’s poor-performing GDP.
Speaking after Stats SA’s recent announcement that gross output had shrunk by R56 billion or 3.2% in the first quarter, Naamsa CEO Mike Mabasa said sales of cars in South Africa were expected to “remain flat” for the rest of the year.
He indicated that making locally manufactured cars cheaper in South Africa would be one way of driving sales higher.
Another stimulus would be to grow sales in markets elsewhere in Africa, in countries like Ethiopia, where upgraded logistical infrastructure on the back of strong economic momentum had become drawcards for exporters.
His sentiments are in line with those expressed by speakers at a recent Transport Forum meeting in Johannesburg, where local business representatives were encouraged to look at export options in Africa.
The continent’s eastern seaboard, bolstered by the economic progress of countries like Ethiopia, Kenya and the energy-sector momentum of countries like Uganda, were highlighted as green-shoot options that were ripe for investment.
However, Naamsa is also keenly monitoring the motoring prowess of Morocco whose 300 000 cars manufactured in 2018 is hot on the heels of SA’s 351 139 for the same year, when the local economy seemed stronger than it currently is.
Concerns are that Morocco, its proximity to Europe, and logistical issues in South Africa such as truck burning on the N3 and port congestion, could threaten the strides that have been made in automotive exports.
These challenges, Mabasa pointed out, were in addition to looming talks with relevant labour unions over wages in the motoring and tyre sector at a time when automotive manufacturers were already under pressure.
