Capital investment expected to reach R3,58bn
ED RICHARDSON
TRAFFIC THROUGH South Africa’s three vehicle terminals is expected to hit around 253 000 vehicles a year, according to the latest quarterly review of business conditions in the motor industry by the National Association of Automobile Manufacturers of South Africa (Naamsa).
The expected volume is eight times higher than the 31 281 vehicles imported and exported in 1995. Naamsa predicts that the industry will export 155 000 completely built up vehicles (CBUs) next year, which is 30000 more than the 125 000 expected in 2004.
Imports will grow from 92 000 to 98 000 vehicles over the next year.
The predictions are part of a generally positive outlook for the motor industry, which is expecting to have one of its best years since the early 1980s.
Capital investment is expected to grow to R3,58-billion, which is one of the highest levels in real terms in recent years.
The report says that, while the industry showed a decline in capital investment in rand terms last year, this should be seen in context of a strong rand, which resulted in lower costs of imported capital equipment.
