A 13% surge in exports helped the South African motor industry slash its trade deficit by more than one-third last year. The deficit — the value gap between exports and imports — fell from R24bn in 2013 to R15.8bn.Having breached the R100bn export barrier for the first time in 2013, at R102.7bn, the industry shipped out R115.7bn in vehicles and components last year.A market recovery in the European Union (EU), the local industry’s biggest trading partner, was a major stimulus for growth.Imports also grew but only at 3.8%, from R126.7bn to R131.5bn.The main reason for the modest rate was the fall in local sales for the first time in five years. With imports accounting for two-thirds of new car sales in SA, a slowdown in foreign currency spending was inevitable.But it’s too early to crack open the champagne. Since the automotive production and development programme (APDP) replaced the 18-year-old motor industry development programme in 2013, a new Treasury formula for assessing trade ...
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