LONDON, Feb. 23, 2016 /PRNewswire/ -- Motor Vehicle Industry: This report focuses on the motor vehicle industry, which incorporates the manufacture, distribution, servicing and maintenance of motor vehicles as well as the manufacture of components.
The South African automotive industry contributed 7.2% to the economy in 2014 and accounted for approximately one-third of all manufacturing activities. Although the total number of industry sales decreased marginally in 2014, export earnings for the year increased by 12.7%, to a record R115.7bn which helped reduce the industry's overall trade deficit. In this competitive sector more than 52 brands and 2,595 models in the new car and light commercial vehicle sectors compete for a share of the domestic market, which is becoming increasingly more competitive in light of the current economic conditions. ;
Government Support: The Automotive Production Development Programme (APDP), designed to help the South African automotive industry expand its manufacturing capability and become globally competitive, attracted R25bn in investments from vehicle and components producers between 2013 and the end of 2014. Despite a review of the APDP indicating that the target of the manufacture of 1.2 million cars by 2020 was unrealistic, many stakeholders have expressed optimism regarding the adjusted incentives and the development of a post-APDP support framework scheduled to take place during the course of 2016. Some however, predict that the domestic sector will find it difficult to manufacture even 650,000 vehicles by 2020 while local manufacturers of components and sub-assemblies, which have to compete with OEM component imports valued at R70.2bn, are struggling to survive. Presently the subject of a government review is the request by the National Association of Automotive Component and Allied Manufacturers (NAACAM) for a 75% tooling subsidy to boost the sector.;
Report Coverage: The report on the South African motor vehicle sector describes the current state of the industry, current developments and factors influencing the success of the industry. Also included in this detailed and informative report are profiles for more than 130 companies, including 31 locally-based vehicle manufacturers and importers, nine body repair companies, 37 component manufacturers and 13 auto salvage companies.
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