Latest figures from the Eastern Cape provincial department of economic affairs show the importance of high value vehicle exports for the national and provincial economy, and especially for East London port.
The figures balance out the impact on local auto assemblers of the poor South African sales of passenger cars last month. But they also point to a deficit on the province’s exports versus its imports.
The auto industry remains the largest manufacturing section in the South African economy, contributing 7.2% to the GDP.
The entire market in new vehicles dropped badly last month, due to a number of factors, including the spate of public holidays, slow ramp up of new models by some manufacturers and caution on the part of buyers.
The year-on-year drop was 14%, from 55389 in March last year to 47631 last month. But with exports showing an improvement of 12% for the year-to-date compared to last year, the Eastern Cape’s motor industry-dependent economy suffered less than other parts of the country, as local assemblers pushed production targets to meet export orders.
Volkswagen SA general manager for communications Matt Gennrich, said that his company predicted a 10% drop in new car sales in South Africa this year. However, the impact on the company would be offset by a slight increase in exports of the VW Polo.
VW produced 120000 vehicles in Uitenhage last year, of which 66 000 Polos were exported to right hand drive markets.
The company also made 112000 engines.
This year the company expects to export 67500 Polo cars and 86000 engines.
Mercedes Benz SA in East London was invited to contribute comment for this article but failed to respond at the time of going to print. However, the company reported last month that its total sales in SA last year totaled 24608 passenger cars, with the bulk of the 102200 C-class cars produced being exported. Figures released by the EC provincial department of economic affairs, environment and tourism, for the third quarter of last year show that automotive exports made up 96% of exports through East London port.
Some R6.6-billion or 68% of that – a big chunk emanating from MBSA and its local supplier base – was shipped to Europe, with Asia being the next biggest target market for local vehicles and parts.
MBSA’s biggest export market for the previous version of the C-class was the US, on the back of Africa Growth and Opportunities Act concessions.
However, that market was only reinstated for the new model in October last year and would only be reflected in final quarter export data.
The bulk of imports through the local port emanated from Europe, with almost two-thirds being automotive components, 28% fully built up vehicles and the remainder comprising machinery, electronics, minerals and metals.
Some 91% of imported goods through EL originated in Germany, pointing to the region’s dependence on economic ties with that country.
East London port exported R1.2-billion of goods less than it imported in the quarter, while the trade deficit based on goods moving through Port Elizabeth and Ngqura ports was just over R2-billion.
New vehicle market commentators said that last month’s sales figures could be improved as production of new models was ramped up at Toyota’s assembly plant.
Figures show car exports vital
The figures balance out the impact on local auto assemblers of the poor South African sales of passenger cars last month. But they also point to a deficit on the province’s exports versus its imports.
The auto industry remains the largest manufacturing section in the South African economy, contributing 7.2% to the GDP.
The entire market in new vehicles dropped badly last month, due to a number of factors, including the spate of public holidays, slow ramp up of new models by some manufacturers and caution on the part of buyers.
The year-on-year drop was 14%, from 55389 in March last year to 47631 last month. But with exports showing an improvement of 12% for the year-to-date compared to last year, the Eastern Cape’s motor industry-dependent economy suffered less than other parts of the country, as local assemblers pushed production targets to meet export orders.
Volkswagen SA general manager for communications Matt Gennrich, said that his company predicted a 10% drop in new car sales in South Africa this year. However, the impact on the company would be offset by a slight increase in exports of the VW Polo.
VW produced 120000 vehicles in Uitenhage last year, of which 66 000 Polos were exported to right hand drive markets.
The company also made 112000 engines.
This year the company expects to export 67500 Polo cars and 86000 engines.
Mercedes Benz SA in East London was invited to contribute comment for this article but failed to respond at the time of going to print. However, the company reported last month that its total sales in SA last year totaled 24608 passenger cars, with the bulk of the 102200 C-class cars produced being exported. Figures released by the EC provincial department of economic affairs, environment and tourism, for the third quarter of last year show that automotive exports made up 96% of exports through East London port.
Some R6.6-billion or 68% of that – a big chunk emanating from MBSA and its local supplier base – was shipped to Europe, with Asia being the next biggest target market for local vehicles and parts.
MBSA’s biggest export market for the previous version of the C-class was the US, on the back of Africa Growth and Opportunities Act concessions.
However, that market was only reinstated for the new model in October last year and would only be reflected in final quarter export data.
The bulk of imports through the local port emanated from Europe, with almost two-thirds being automotive components, 28% fully built up vehicles and the remainder comprising machinery, electronics, minerals and metals.
Some 91% of imported goods through EL originated in Germany, pointing to the region’s dependence on economic ties with that country.
East London port exported R1.2-billion of goods less than it imported in the quarter, while the trade deficit based on goods moving through Port Elizabeth and Ngqura ports was just over R2-billion.
New vehicle market commentators said that last month’s sales figures could be improved as production of new models was ramped up at Toyota’s assembly plant.
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