Feast and famine for motor industry
While motor manufacturers are predicting growth on all fronts for the local industry, no-one knows for sure when or where the turnaround will happen. But exports continue to look good
There’s a recovery out there ... somewhere. But no-one knows exactly where to find it. SA motor companies are confidently forecasting steady growth in demand for their vehicles. The problem is, they’re not sure when or where it will happen. After decades of feast or famine driven by extremes of market demand, the SA motor industry has set a new standard: simultaneous feast and famine. While bemoaning the collapse of domestic new-vehicle sales, the industry is celebrating booming production. It is a feature of the SA environment that while more than 50% of vehicles sold here are imported, SA motor companies export more than 50% of what they build. So increased export demand in 2016 more than compensated for the loss of production caused by an overall 11.4% drop in local sales compared with 2015. Imported vehicles were hardest hit by that decline. The trading environment is tough enough without complications like this. GMSA says continued rand volatility, subdued business and consumer...
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