This year is expected to be a challenging one for the South African automotive industry, says the National Association of Automobile Manufacturers in South Africa (Naamsa).
“The outlook for 2015 remains uninspiring with the best case scenario, at this stage, one of marginal volume growth in domestic sales.
“Naamsa projections are based on expectations of an improvement in South Africa’s economic growth rate to between 2 percent and 2.5 percent in 2015, relative stability in automotive industry industrial relations, stable interest rates and credit ratings as well as prospects for moderating consumer price inflation,” says Naamsa in its flash sales results of cars for sale in South Africa.
But, Naamsa cautioned, these positives factors were expected to be offset by higher than inflation new vehicle price increases as a result of the weakness in the Rand in 2013 and 201. This resulted in cost pressures in respect of imported content used to manufacture vehicles locally.
“Provided the expectations materialised, aggregate new vehicle sales volume growth during 2015 could improve by around 4 percent. This would represent a commendable performance in relation to the fairly high sales base established over the past few years.”
According to Naamsa, vehicle exports would remain connected to the performance of global markets.
“Signs were emerging of a modest improvement in the global economy led by a recovery in vehicle sales in the United States and continued growth in Asia.
“Demand for light commercial vehicles in African markets were also expected to show above average growth and these trends were expected to support 2015 Industry export sales.”
An improvement in exports was expected for this year with 600 000 vehicles to be produced this year, compared to the 542 000 produced in 2014.
“The projected higher levels of vehicle production are consistent with the official vision for the Industry which is to remain a premier supplier of high quality, competitive automotive original equipment parts and accessories and vehicles to international markets and, in the process, to achieve an annual domestic vehicle production figure of close to 1 million vehicles by 2020.”
One of the most important factors for the realisation of South Africa’s goal to produce more than 1 million cars per year is the stability of labour relations and close cooperation between employers and unions.
This after the automotive industry suffered crippling strikes last year and in 2013 over wages for workers.
The good news for consumers is there are plenty of specials and deals available as car salespeople are keen to secure deals.