Photo by: Duane Daws
The National Association of Automobile Manufacturers of South Africa (Naamsa) believes it is still possible for the new-vehicle market to grow in 2017, despite “prevailing political and economic uncertainties”.
The sales projections for 2017 and 2018, put forward by the association in its newest quarterly report, are, however, only “Naamsa’s best estimates”, and premised on a number of assumptions.
These assumptions include the hope that South Africa will avoid further credit rating downgrades; that interest rates will not increase over the short to medium term; that economic growth for 2017 and 2018 will show some improvement, albeit off a low base; and that the rand will not depreciate markedly.
Naamsa states that South Africa’s new-vehicle sales market may inch up to 548 500 units in 2017, compared with 2016’s 547 174 units. The market could expand to 569 00 units in 2018.
The truck market may grow to 27 500 unit in 2017, up from the 26 997 units recorded last year. Sales may reach 28 000 units in 2018.
Domestic vehicle production may grow from 600 007 units in 2016, to 600 600 this year, and 633 200 units in 2018, despite the departure of General Motors from South Africa.
Naamsa believes it is possible for new-vehicle exports from South Africa to grow from 344 822 units in 2016, to 351 600 units in 2017, and 366 200 units in 2018.