Air Freight News

South Africa car exports accelerate to record high in 2019

South African vehicle exports reached a record high in 2019, partially offsetting a decline in domestic vehicle sales.

Africa’s largest automaker shipped 386,863 units last year, up from just over 351,000 vehicles in 2018, data from the National Association of Automobile Manufacturers of South Africa show. Exports were bolstered by increased output by assemblers including Ford Motor Co., which introduced a third daily weekday shift at its Silverton assembly plant near the capital, Pretoria.

While vehicle manufacturing is supported by accommodative policy and production incentives under the Automotive Production and Development Programme, it has failed to achieve the government’s production target of 1.2 million units by 2020. The industry produces about 600,000 vehicles a year. A revised APDP will take effect in 2021 and run until 2035.

Improved export volumes offset the continued decline in domestic sales of new vehicles amid sluggish economic growth. The number of new cars sold locally fell 2.8% year on year, marking the fifth decline in six years, despite below-inflation price increases and aggressive discounting by retailers. South Africa’s economy is stuck in the longest downward cycle since 1945.

The automotive industry, which accounts for 14% of South Africa’s export value, is the largest component of the country’s manufacturing sector and employs more than 100,000 skilled workers.

Bloomberg
Bloomberg

{afn_job_title}

© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

US is asking allies to tighten servicing of chip gear in China

The US is asking allies to impose more restrictions on maintaining chipmaking equipment in China as the Biden administration seeks to further thwart Beijing’s ambition to build cutting-edge semiconductors.

View Article
France delays new EU-Canada trade deal vote after Senate setback

The French government will delay holding another vote on the European Union’s free-trade deal with Canada, after an embarrassing setback in the Senate.

View Article
China ‘very close’ to ending Australia wine tariffs, business chief says

The Chinese government is “very close” to lifting the heavy tariffs on Australian wine imports, a business lobby said, while tempering expectations about all producers returning to the market after…

View Article
https://www.ajot.com/images/uploads/article/China_soybean_chart.jpg
Gap in China’s soybean trade casts doubt on data reliability
View Article
https://www.ajot.com/images/uploads/article/White_corn.jpg
El Nino may see first S. Africa white-corn import since 2017
View Article
https://www.ajot.com/images/uploads/article/Russian_oil_tanker.jpg
Sanctions “Yet to curtail Russia with any compelling effect.”
View Article