Consolidation in the
MIDP has opened untapped
sectors of the market
Ed Richardson
SHIPPING LINE Hual has become an integral part of the Port Elizabeth-based Delta Motor Corporation's plans to reposition itself in the local passenger car market.
The shipping line, which has been carrying Delta products to the Indian Ocean islands for the past four years, has secured the contract to transport new-generation Opels from Europe.
"In recent years Delta has concentrated on
supplying locally manufactured Opel Corsa
and Astra models to South African buyers," says Ian Nicholls, director of sales and marketing.
"This has limited us to competing in just over 50% of the passenger car market in South Africa and denied us access to the medium to large saloon car segment and to the fast-growing MPV segment," he says.
The first big consignment of the new range was recently offloaded from the Hual Trident in Port Elizabeth.
Delta will be offsetting the import duties through export credits earned on both components and fully built up vehicles.
"The process of consolidation in the MIDP has seen new opportunities open up for all manufacturers and distributors to expand into untapped sectors of the market, provided that there is access to a source of export credits to support these imports without attracting severe duty penalties," says Nicholls.
"The impact of this can best be illustrated by the fact that in 1995 the mix of fully imported to locally manufactured new vehicles was 7,2% to 92,8%.
This year that mix is a projected 28% fully imported to 72% locally manufactured.
"At Delta we have reached a situation where our component export programmes generate the required import duty credits to support a sustainable imported vehicle programme. This has enabled us to begin importing a range of five new models in the Opel product range.
