NAAMSA’s quarterly review of business conditions for the South African motor vehicle manufacturing industry
NAAMSA’s quarterly review of business conditions for the South African motor vehicle manufacturing industry, during the fourth quarter of 2019, as submitted to the Director-General, Department of Trade and Industry. Industry vehicle sales, export and import statistics for 2000 through 2019, together with current projections for 2020, are reflected on the attachment to the submission.
Key features: Fourth Quarter 2019
- Fourth quarter 2019 industry employment reflected an increase of 187 jobs to reach 30 666 positions at end December 2019;
- Industry capacity utilisation levels continue to reflect the prevailing business conditions in the various industry segments in terms of domestic and export sales with the passenger car’s capacity utilisation enhanced by higher production to accommodate record vehicle exports of 387 125 vehicles in 2019;
- Aggregate capital expenditure by the major vehicle manufacturers in 2019 recorded its second highest level on record at R7,274 billion;
- The high-volume passenger car and medium commercial vehicle segments increased during the quarter but year-on-year passenger cars, light commercial vehicles and heavy commercial vehicles reflected declines with only the low volume medium and extra heavy commercial vehicle segments reflecting some resilience with year-on-year increases; and
- Expectations for 2020 are for the declining trend in the new vehicle market to continue in close correlation with the weak macro-economic climate in the country, but for the upward momentum in export sales to continue.