automotive export manual

Transcription

South Africa
Automotive
Export
Manual
2016
AUTOMOTIVE EXPORT MANUAL – 2016 –
SOUTH AFRICA PUBLICATION
The Automotive Export Manual – 2016 – South Africa publication is an annual publication produced and
compiled by the Automotive Industry Export Council (AIEC) – the recognised source of South African
automotive trade data. The 2016 publication, as well as the previous nine publications since 2007, provides
a comprehensive guide on the export and import performance of the South African automotive industry
under the previous Motor Industry Development Programme (MIDP) and current Automotive Production
Development Programme (APDP). The aim of the manual is to identify and report on the major automotive
export destinations, the major countries of origin, the main automotive export trade blocs, the most
important automotive products being exported and imported, the top growth markets and products as
well as the impact of the trade arrangements enjoyed by South Africa on automotive trade patterns.
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ACKNOWLEDGEMENTS
The information and analysis in this report were produced and compiled by Dr Norman Lamprecht on behalf
of the Automotive Industry Export Council. The contributions and assistance by NAAMSA, NAACAM and the
Department of Trade and Industry are hereby gratefully acknowledged. The data processing and editing by
Dr Alet Tolmay and design and outlay of the publication by Dr Selma Schiller are also acknowledged with
appreciation.
AIEC
P O Box 40611
Arcadia
0007
Tel: +27 12 807 0086
Fax: +27 12 807 0481
Website: www.aiec.co.za
2
CONTENTS
South Africa – key performance indicators............................................................................................................................ 5
The Automotive Industry Export Council................................................................................................................................ 7
South African new vehicle market features............................................................................................................................ 9
South Africa and its automotive clusters...............................................................................................................................13
Operating environment of the South African automotive industry............................................................................18
South Africa’s automotive policy regime...............................................................................................................................20
Methodology – automotive export and import data.......................................................................................................25
Exports to countries......................................................................................................................................................................26
Exports to regions..........................................................................................................................................................................31
Exports of vehicles.........................................................................................................................................................................48
Automotive components – exports by country..................................................................................................................51
Automotive components – exports by product.................................................................................................................61
Imports by country of origin......................................................................................................................................................70
Imports of vehicles........................................................................................................................................................................72
Automotive parts and components – imports....................................................................................................................74
Main automotive trading partners..........................................................................................................................................76
The automotive industry’s trade balance..............................................................................................................................80
Potential opportunities via trade and co-operation arrangements............................................................................83
South African automotive industry growth prospects.....................................................................................................87
Key motor industry contact details.........................................................................................................................................89
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ABBREVIATIONS
AGOA African Growth and Opportunity Act
AIEC Automotive Industry Export Council
AIS Automotive Investment Scheme
APDP Automotive Production Development Programme
BLNS Botswana, Lesotho, Namibia and Swaziland
BRICS Brazil, Russia, India, China and South Africa
CBU Completely Built-up
CKD Completely Knocked Down
COMESA Common Market for Eastern and Southern Africa
CPI Consumer Price Index
DTI The Department of Trade and Industry
EAC East African Community
EU European Union
FDI Foreign Direct Investment
FOB Free on Board
FTA Free Trade Agreement
GDP Gross Domestic Product
IDZ Industrial Development Zone
MERCOSUR Mercado Común del Sur – Common Market of South America
MIDP Motor Industry Development Programme
NAACAM National Association of Automotive Component and Allied Manufacturers
NAAMSA National Association of Automobile Manufacturers of South Africa
NAFTA North American Free Trade Area
OEM Original Equipment Manufacturer (Vehicle Manufacturer)
OICA International Organisation of Motor Vehicle Manufacturers
SA South Africa
SACU Southern African Customs Union
SADC Southern African Development Community
SARS South African Revenue Service
WTO World Trade Organisation
4
SOUTH AFRICA – KEY
PERFORMANCE INDICATORS
The following table highlights the significant social and economic contribution by the domestic automotive
industry in the context of the South African economy for 2015 versus 2014.
Key performance indicators – 2015 vs 2014
Indicator
Performance
2014
Consumer Price Index (CPI)
2015
6,1%
4,6%
R3 797,1 billion
R3 991,0 billion
Broader automotive industry contribution to GDP
7,2%
7,5%
Vehicle and component production as % of South Africa’s manufacturing output
30,2%
33,5%
Average monthly employment by vehicle manufacturers
29 715
31 260
Automotive component sector employment
82 790
82 100
Capital expenditure – vehicle manufacturers
R6,9 billion
R6,6 billion
Capital expenditure – component sector
R2,7 billion
R2,8 billion
Total South African new vehicle sales
644 259 units
617 749 units
Total South African vehicle production
566 131 units
615 658 units
South Africa’s vehicle production as % of Africa’s vehicle production
68%
64%
South Africa’s global vehicle production ranking
24th
21st
South Africa’s global vehicle production market share
0,63%
0,68%
176
180
R115,7 billion
R151,5 billion
11,7%
14,6%
Number of export destinations
148
140
Number of export destinations with export values more than doubling year-on-year
25
30
Germany
Germany
Total South African vehicle exports
276 936 units
333 802 units
Total value of vehicle exports
R70,0 billion
R101,9 billion
Top vehicle export destination in volume terms
UK
UK
Total value of automotive component exports
R45,7 billion
R49,6 billion
Catalytic converters
Top automotive trading partner in rand value terms
Germany
Germany
Top automotive trading region in rand value terms
EU
EU
Germany
Germany
India
India
South Africa’s Gross Domestic Product (GDP)
Vehicle ownership ratio per 1 000 persons
Total automotive export earnings
Automotive export value as % of total South African export value
Top automotive country export destination in rand value terms
Top automotive export component category in rand value terms
Top country of origin for total automotive imports in rand value terms
Top country of origin for vehicle imports
Source: AIEC, Econometrix, NAACAM, NAAMSA/Lightstone Auto, OICA, SARS
South Africa represents a globally integrated market-oriented economy with a Gross Domestic Product
(GDP) of R3 991,0 billion, at current prices, in 2015. The manufacturing sector is important to support
sustainable growth in the country and it possesses the highest growth and employment multipliers of
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all the country’s economic sectors. The automotive industry is the biggest contributor to manufacturing
output and is one of the most dynamic parts of the segment. The broader automotive industry, through
its well-integrated value chain from downstream to upstream activities, contributed 7,5% to the country’s
GDP in 2015. The vehicle and automotive component manufacturing industries accounted for 33,5% of the
country’s total manufacturing output, while record automotive export earnings of R151,5 billion in 2015,
up substantially by 30,9% from the R115,7 billion in 2014, comprised a significant 14,6% of South Africa’s
total export earnings.
In contrast to many other industries, South African automotive firms have proven to be resilient against
adverse economic conditions due to the high level of integration with domestic component suppliers, a
stable policy framework and export diversification. Despite a number of macro-economic headwinds faced
in the domestic economy, exports of automotive products constitute the major economic success in the
country. In 2015 automotive exports expanded whilst domestic vehicle demand declined by 4,1% on a
year-on-year basis. China’s economic slowdown and the associated decline in commodity prices, together
with the country’s worst drought in 20 years, will continue to exact a heavy toll on the domestic economy
in 2016, and automotive exports will become even more pertinent. The South African automotive industry,
however, is well placed geographically to benefit from the growth in Africa and well positioned to gain
momentum as the world economy recovers.
For currency comparison purposes, the following table reveals the movements of the rand against the
currencies of the South African automotive industry’s main trading partners, namely, the EU, the US and
Japan, from 2011 through to 2015.
Currency indices for the rand versus major trading partners
(Foreign currency: rand – annual averages)
Currency
2011
2012
2013
2014
2015
Euro
10,08
10,55
12,82
14,40
14,14
Index 2011
100
105
127
143
140
US$
7,25
8,21
9,65
10,84
12,75
Index 2011
100
113
133
150
176
Japan (100 Yen)
9,12
10,29
9,87
10,26
10,53
Index 2011
100
113
108
113
115
Source: South African Reserve Bank
The exchange rate of the rand against the US dollar has depreciated significantly during 2015. Pricing
pressures exerted on vehicle manufacturers sourcing products out of Japan and Europe would have been
less over the 2015 period than those sourcing products from the US or those financing their imports in US
dollars. The South African Reserve Bank (SARB) is responsible for formulating and implementing monetary
policy. Its primary objectives are keeping inflation within a targeted range of 3% to 6% and maintaining a
stable, competitive currency. CPI for 2015 was 4,6%. The SARB’s Monetary Policy Committee increased the
repo rate by a further 25 basis points in November 2015 following a 25 basis points increase in July 2015.
This brought the prime lending rate to 9,75% in 2015. The announcement came against the background
of expected inflationary pressures due to the lagged effect of the severe drought in the country on food
prices and a weakening rand exchange rate.
6
THE AUTOMOTIVE INDUSTRY
EXPORT COUNCIL
The Automotive Industry Export Council (AIEC) serves as the umbrella body for the South African automotive
industry’s export promotion and development activities and represents an important link between the
industry and the Department of Trade and Industry (Dti). The AIEC represents the interests of seven major
motor vehicle manufacturers/exporters, namely BMW, Ford, General Motors, Mercedes-Benz, Nissan,
Toyota and Volkswagen as well as manufacturers/exporters of trucks and buses, and about 500 automotive
component suppliers in South Africa. Importantly, the AIEC is the only means of access available to about
300 small enterprises that are not part of the main stream, in respect of trade enquiries, invitations to
events and other service offerings, amongst others. Membership of the AIEC is free.
The AIEC is administered by the NAAMSA offices in Pretoria and the activities and administration are
coordinated by the AIEC Board. The AIEC Board of Directors consists of Mr Roger Pitot (Advisor – NAACAM
– Chairperson), Mr Nico Vermeulen (Director – NAAMSA), Dr Norman Lamprecht (Executive Manager –
NAAMSA) as well as two ex-officio members from the Department of Trade and Industry, Mr Mzwakhe
Mbatha and Mr Adriaan Adams.
Mr Roger Pitot
Advisor
NAACAM - Chairperson
Dr Norman Lamprecht
Executive Manager
NAAMSA
Mr Mzwakhe Mbatha
Ex-officio Member
DTI
Mr Adriaan Adams
Ex-officio Member
DTI
7
Mr Nico Vermeulen
Director
NAAMSA
One of the AIEC’s key service offerings to stimulate export growth and deepen the export base is to
facilitate participation in major automotive events abroad. National Pavilions at international events are
regarded as the flagship tool utilised for the promotion of the domestic automotive industry’s world class
capabilities. During 2015, financial assistance under the Dti’s Export Marketing and Investment Assistance
(EMIA) scheme allowed automotive manufacturing exhibitors to participate in the Automechanika Middle
East, United Arab Emirates (UAE) National Pavilion from 2 to 4 June 2015, as well as facilitating participation
in the South African National Pavilion at Midest, France which ran from 17 to 20 November 2015.
The automotive National Pavilions approved for the 2016/2017 financial year include the Automechanika
Middle East National Pavilion in the UAE from 8 to 10 May 2016 (www.automechanikadubai.com),
the Automechanika Frankfurt National Pavilion in Germany from 13 to 17 September 2016 (www.
automechanikafrankfurt.com), as well as the South African National Pavilion at Midest, France from 6 to 9
December 2016 (www.midest.com). The South African automotive events in the 2016/2017 financial year
include the South African Festival of Motoring from 31 August to 4 September 2016 at the Kyalami Grand
Prix Circuit and International Convention Centre, Johannesburg (www. safestivalofmotoring.com) and the
South African Automotive Week from 11 to 13 October 2016 at Gallagher Estate, Johannesburg (www.saaw.
co.za). More information on the Automotive Industry Export Council can be accessed at www.aiec.co.za.
The industry associations representing and providing a host of services to the manufacturing and retail side
of the automotive industry in South Africa include the National Association of Automobile Manufacturers
of South Africa (NAAMSA), the National Association of Automotive Component and Allied Manufacturers
(NAACAM) and the Retail Motor Industry Organisation (RMI).
NAAMSA represents the collective, non-competitive interests of the new vehicle manufacturing industry
in South Africa and comprises 22 companies involved in the production of passenger cars and commercial
vehicles which collectively employ over 31 000 people. NAAMSA also represents the interests of a further
21 companies involved in the importation and distribution of new motor vehicles in South Africa. More
information on NAAMSA and its activities can be accessed at www.naamsa.co.za.
NAACAM represents the interests of the automotive component manufacturers in the country. The
association has 125 members, of which 100 first-tier suppliers, with 220 regional manufacturing sites, in
addition to 23 associate members who provide mainly logistics, information technology and financial
services to members. Employment in the component sector, including the enterprises not members of
NAACAM, comprised 82 100 people in 2015. More information on NAACAM, including the profiles and
contact details of the major automotive component suppliers in South Africa, can be accessed at www.
naacam.co.za.
The RMI represents the retail motor trade side of the automotive industry, which includes 7 500 members
across 14 trade associations that are serviced out of six offices around the country. South Africa had a
vehicle parc (number of registered vehicles) of 11,71 million at the end of December, 2015, of which 6,85
million or 58,5% comprised passenger cars. More information on the RMI can be accessed at www.rmi.org.za.
8
SOUTH AFRICAN NEW VEHICLE
MARKET FEATURES
South Africa produces a broad range of vehicles, including passenger cars, light commercial vehicles,
medium commercial vehicles, heavy commercial vehicles, extra heavy commercial vehicles and buses. The
industry in South Africa currently has one of the most competitive trading environments in the world and
in 2015 offered no fewer than 55 brands and 2 872 passenger car model derivatives for consumers to select
from. This affords car buyers the widest choice to market-size ratio anywhere in the world. Similarly, on the
light commercial vehicle side, for the same period, there were 31 brands with 625 model derivatives to
choose from. The vehicle-ownership ratio in South Africa is in the order of 180 vehicles per 1 000 persons.
Year-on-year new vehicle sales in South Africa declined for the second successive year in 2015, with a
drop of 4,1% in the overall market compared to 2014. Total sales for the year amounted to 617 749 units
compared to the 644 259 units retailed in 2014. In 2015 the passenger car segment reflected the biggest
decline with a fall of 6,0%, while there was a decrease of 3,2% in sales of trucks and buses. Light commercial
vehicles showed a modest increase of 0,5% over 2014. The downturn in domestic new vehicle sales could
be attributed to various factors, such as a slowdown in the economy, increases in interest rates, pressure
on consumers’ disposable income and inflationary pressures brought on by a deteriorating rand resulting
in increasing retail prices above inflation. Sales via dealer networks comprised 79,7% of sales in 2015, while
the rental industry was again a major contributor and accounted for 12,5% of total new vehicle sales.
The motor industry’s sales-related turnover grew by only 3,6% in 2015, to reach R235 billion for the year.
The outlook for 2016 is unfavourable and the underlying negative economic circumstances are likely to
suppress demand for new cars and commercial vehicles. The consumer demand-sensitive new car market,
which is the most responsive barometer of changes to growth in the economy, is anticipated to decline by
around 9% in volume terms. New commercial vehicle sales are expected to perform slightly better with
expected declines of between 3% and 5% in volume terms.
Toyota SA Motors has maintained its overall market leadership in 2015 for the thirty-sixth year running,
with a market share of 19,9%, followed by Volkswagen Group of SA, Ford Motor Company of Southern
Africa and Associated Motor Holdings. The following graph reveals the market shares of the top 10 OEMs
or importers in the country in 2015.
Honda, 1,8%
Renault, 3,2%
Other, 10,5%
Toyota, 19,9%
BMW Group, 3,8%
Mercedes-Benz,
5,3%
Nissan, 7,8%
VW/Audi, 15,9%
GM, 9,5%
Ford Motor
Company, 12,7%
AMH, 9,6%
Overall new vehicle market share – 2015
Source: NAAMSA/Lightstone Auto
9
In 2015, the Toyota Hilux sold 35 684 units and was the top-selling vehicle model range overall in South
Africa. The VW Vivo headed the passenger car market, ahead of its Polo stablemate. Light commercial
vehicles and more affordable cars dominated South Africa’s new vehicle market in 2015. Nine of 2015’s
top 10 selling passenger car and light commercial vehicle models were manufactured locally. The top 10
most popular models sold in 2015 included five locally manufactured light commercial vehicle models,
namely the Toyota Hilux, Ford Ranger, Nissan NP200, Chevrolet Utility and the Isuzu KB, and four locally
manufactured passenger cars, namely the VW Polo Vivo, VW Polo, Toyota Corolla/Corolla Quest and the
Mercedes-Benz C-Class, with the budget Toyota Etios, imported from India, being the only exception.
The popularity of diesel engine models has been increasing steadily over recent years and in 2015, the
market share for new diesel passenger car and light commercial vehicle sales accounted for 32,1% of total
light vehicle sales, up from 30,8% in 2014. Hybrid petrol and diesel vehicle sales comprised 502 units in
2015 while electric car sales, including the Nissan Leaf, BMW i3 and BMW i8, showed a substantial increase,
albeit off a low base, to 79 units in 2015. The following table reveals the split between sales of new petrol
and diesel light vehicles in South Africa from 2011 through to 2015.
Petrol versus diesel passenger cars and light commercial vehicles – 2011 to
2015
Diesel cars & diesel light commercials
2011
2012
2013
2014
2015
133 240
156 512
182 833
188 890
188 077
Petrol cars & petrol light commercials
418 389
445 499
435 425
424 049
398 492
Total cars & light commercials
551 629
602 011
618 258
612 939
586 569
Diesel vehicles as % of total
24,2%
26,0%
29,6%
30,8%
32,1%
In contrast to the challenging domestic trading environment, vehicle production remains on a firm footing
and substantially higher new vehicle exports should continue to support the industry’s production levels
and South Africa’s balance of payments through 2016 and beyond. The following table reveals the number
of passenger cars and light commercial vehicles manufactured over the past five years.
Production of passenger cars and light commercial vehicles – 2011 to 2015
PASSENGER CARS
Market
LIGHT COMMERCIAL VEHICLES
Market
Domestic
Exports
Total
Exports as a %
of total
Domestic
Export
Total
Exports as a %
of total
2011
124 736
187 529
312 265
60,1
108 704
84 125
192 829
43,6
2012
120 417
151 659
272 076
55,7
121 638
123 443
245 081
50,4
2013
113 356
151 893
265 249
57,3
127 051
121 345
248 396
48,9
2014
122 610
154 920
277 530
55,8
137 044
118 585
255 629
46,4
2015
112 566
228 459
341 025
67,0
140 310
102 664
242 974
42,3
Total domestic production, largely due to increased vehicle exports, is anticipated to rise by over 4,0% in
volume terms, from the 615 658 units produced in 2015, to about 640 000 vehicles in 2016. South Africa
exported 56,7% of its light vehicle (passenger cars and light commercial vehicles) production in 2015. The
performance of exports will remain a function of the performance and direction of global markets, as well
as OEM policies which will continue to support South African vehicle production as long as it remains
10
competitive. Signs are emerging of an improvement in the global economy. Recovering sales in the US and
the EU, and continued growth in Asia represent the main drivers behind global sales. Demand for vehicles
in African markets, although declining in 2015 mainly due to regulatory changes in some countries, is
expected to show above-average growth in future.
Passenger car models manufactured in South Africa in 2015 included the following:
BMW General Motors
Mercedes-Benz Toyota Volkswagen 3-Series 4-door
Chevrolet Spark
C-Class 4-door
Corolla 4-door new and previous series
(designated Quest) and Fortuner
Polo new and previous series (designated Vivo)
Light commercial vehicle models manufactured in South Africa in 2015 included the following:
Ford General Motors Nissan Toyota Ranger
Chevrolet Utility and Isuzu KB
NP200, NP300 Hardbody
Hilux and Quantum
Truck and bus volumes at 30 535 units, when seen against the total industry volume of 617 749 units,
represent only a small percentage, which nevertheless is vital to the domestic economy, as the bulk of
transport in the country is by road. A combination of macro-economic factors, which include a weak
exchange rate, pressure of inflation and interest rates, as well as low business confidence levels, contributed
to a decline in local truck sales during 2015. The bus market showed the biggest percentage decline when
comparing the 1 119 units sold in 2015 to the 1 253 units sold in 2014, which represents a decrease of
10,7%, however, this does not represent a big unit volume. The biggest 2015 loser in volume terms, by 559
units, from 11 017 units in 2014 to 10 458 units in 2015, was the medium truck segment, indicating that
small businesses are taking strain. The heavy commercial vehicle market gained a modest 2,8% up from
the 5 441 units in 2014 to 5 593 units in 2015, while extra heavy commercial vehicle sales dropped by 3,4%
from 13 840 units in 2014 compared to 13 365 units in 2015, declining by 475 units.
With the South African economy predicted to grow by less than 1% during 2016, it is anticipated that the
domestic truck market is in for another challenging year. Aspects such as fuel efficiency, uptime, payload
productivity and the overall lifecycle costs of trucks are becoming more crucial for cost-conscious fleet
owners. New truck and bus exports also declined by 20,5% from the 1 414 units exported in 2014 to exports
of 1 124 units in 2015. As the main export region, African markets are experiencing significant distress,
especially as oil revenue and commodity prices continue to decline. Notwithstanding this, one of the top
priorities for the truck and bus sector is to continue expanding into Africa.
11
The following table reveals the number of medium, heavy, extra heavy commercial vehicles and buses
assembled over the past five years.
Assembly of medium and heavy commercial vehicles and buses – 2011 to
2015
MEDIUM AND HEAVY COMMERCIALS
Market
Exports as a % of total
Domestic
Exports
Total
2011
26 656
803
27 459
2,9
2012
27 841
1 076
28 917
3,7
2013
30 924
1 206
32 130
3,8
2014
31 558
1 414
32 972
4,3
2015
30 535
1 124
31 659
3,6
In 2015, the following medium, heavy and extra heavy commercial vehicle companies were represented in
South Africa:
Associated Motor Holdings (AMH) Babcock
Bell Equipment
Busmark
FAW Trucks
Fiat Group
Ford Motor Company
Freightliner
Fuso
GMSA/Isuzu Trucks
HinoIveco
JMCMAN
MarcoPolo
Mercedes-Benz SA
NC2 Trucks Southern Africa
Peugeot Citroen SA
Powerstar
Renault Trucks
ScaniaTATA
Toyota Volkswagen Group SA
Volvo Group Southern Africa
In 2015, the following bus companies were represented in South Africa:
GMSA/Isuzu Trucks
Iveco
MANMercedes-Benz
ScaniaTATA
VDL Bus & Coach
Volvo Group Southern Africa
Medium and heavy commercial vehicles are regarded as productive assets and essential capital inputs in
the economy. Therefore, the level of protection on these vehicles has been set at 20% ad valorem, which is
lower than the level on light commercial vehicles and passenger cars which attract an import duty of 25%
ad valorem. Assembly operations of trucks and buses are characterised by the duty-free importation of all
the drive-line components, which include the engines, transmissions, drive-axles and gearboxes. However,
tyres, which are manufactured domestically, attract a 15% import duty.
12
SOUTH AFRICA AND ITS
AUTOMOTIVE CLUSTERS
13
South Africa’s established infrastructure and its sophisticated accounting, banking, medical and legal
environments leverage the country as the ideal platform for foreign businesses to establish a presence and
venture into the rest of Africa. The country is already home to the headquarters of a number of major multinationals in the industrial, energy and financial sectors. South Africa has 11 official languages but English is
the preferred language of business. The country and its nine very diverse provinces are well positioned to
play a leading role in harnessing the full potential of African economies. South African government policies
seek, amongst others, to increase the country’s role in regional development and economic integration
of the African continent through industrialisation and trade. The country’s increasing manufacturing
competencies will increase the diverse export trade with the rest of Africa and the world.
In respect of the South African automotive industry, support exists at two levels. National support, in the
form of the APDP and the Automotive Supply Chain Competitiveness Initiative (ASCCI), plays an important
role in addressing common industry challenges in the context of the national economy. Focus and support
to the industry are provided via mechanisms that are effected at national level, such as duties, tax incentives,
competitiveness issues and national engagements, amongst others. Regional support mechanisms, by
contrast, offer the opportunity to address the specific needs of the industry residing in specific geographic
areas, and have the advantage of leveraging the benefits of geographical proximity.
South Africa’s automotive industry clusters are located mainly in three provinces, namely Gauteng,
KwaZulu-Natal and the Eastern Cape, although there has been some migration over provincial borders
to other provinces. The provinces vary substantially in size, wealth, geography, ethnicity, population and
performance. Per capita GDP is highest in Gauteng and lowest in the Eastern Cape. The OEMs are at the
centre of the clusters and, along with their suppliers, are supported across the economic landscape at
national, provincial and municipal levels.
Gauteng
Gauteng is South Africa’s economic powerhouse and is regarded as the natural destination for international
investors wishing to establish a springboard into Africa. The province is the smallest of the country’s nine
provinces but is the country’s financial and industrial economic centre and home to 13,2 million or 24,0%
of the country’s population of 54,96 million people. Johannesburg is the provincial capital and the main
point of entry for the country, as most overseas visitors enter South Africa through OR Tambo International
Airport. Pretoria is the administrative capital of South Africa and houses most of the foreign embassies in
the country. The province produces around a third of the national GDP, generates the highest per capita
income, and accounts for 40% of South Africa’s manufacturing output, construction activity and financial
services. Gauteng houses three OEMs and the highest number of the country’s automotive component
suppliers.
The Gauteng Growth and Development Agency (GGDA) is responsible for the promotion of trade and
investment and project implementation in the province, and via its two automotive specific subsidiaries, the
Automotive Industry Development Centre (AIDC) and the Automotive Supplier Park (ASP), provides support
to the automotive industry. The Gauteng Investment Centre (GIC), housed in Sandton and managed by the
GGDA, represents a one-stop business services facility to domestic and foreign investors, and provides
access to investment services and support from various tiers and agencies of government. The province
also hosts various national government departments, the Council for Scientific and Industrial Research
(CSIR) - one of the largest scientific and technology, research and development (R&D) and implementation
organisations in Africa - as well as the City Deep logistics hub - the premier container depot in the country,
the largest inland port in Africa and the fifth-largest in the world.
14
Gauteng – key automotive features – 2015
Key automotive features
Gauteng
OEMs (manufacturing plants)
BMW SA
Nissan SA
Ford Motor Company of Southern Africa
Medium, heavy, extra heavy commercial vehicle and bus companies
Associated Motor Holdings (AMH), Babcock, Busmark 2000, Fiat Group,
Ford, Freightliner, Fuso, Iveco SA, JMC SA, MAN Truck & Bus, MarcoPolo, NC
2 Trucks Southern Africa, Peugeot Citroen SA, Powerstar SA, Renault Trucks,
Scania, TATA Motors, VDL Bus & Coach and Volvo Group Southern Africa
Number of automotive component companies
200
Motor vehicle parc as % of South Africa’s total vehicle parc of 11,71
million vehicles
38,6%
Passenger car sales as % of total 2015 passenger car sales of 412 670
units
35,3%
LCV sales as % of total 2015 LCV sales of 174 544 units
31,2%
MCV/HCV sales as % of total 2015 MCV/HCV sales of 30 535 units
36,2%
Light vehicle production by OEMs in the province as % of total 2015
light vehicle production of 583 999 units
30,9%
Light vehicle exports by OEMs in the province as % of total 2015
exports of 333 802 units
33,3%
Source: NAACAM, NAAMSA/Lightstone Auto
KwaZulu-Natal
KwaZulu-Natal, with its capital Mzunduzi (Pietermaritzburg) and a population of 10,9 million people,
represents the second largest economy in the country after Gauteng, and is one of the country’s most
popular holiday destinations. Durban is South Africa’s second-largest city and the country’s busiest port.
Richards Bay is South Africa’s busiest bulk port, with at its centre, the Richards Bay Industrial Development
Zone (IDZ), a purpose-built and secure industrial estate. The ports of Durban and Richards Bay handle
about three-quarters of the country’s tonnage. The province benefits from its diversification efforts across
various sectors. Manufacturing – dominated by pulp and paper, chemicals, automotive and food and
beverages – is the largest sector in the province, followed by finance, trade, tourism and agriculture. The
King Shaka International Airport and the Dube TradePort at La Mercy provide easy access to Durban and
also to international markets. The Dube TradePort has been earmarked for the development of a Special
Economic Zone (SEZ) and is Africa’s first purpose-built aerotropolis. It is the only facility in Africa that brings
together an international airport, a cargo terminal, warehousing, offices, a retail sector, hotels, and an
agricultural area. Located 30 km north of Durban, Dube TradePort is positioned between the two biggest
sea ports in southern Africa and is linked to the rest of Africa by road and rail. The province, hence enjoys
the strategic and competitive advantage of being a global gateway for trade into Africa and to the world.
Trade and Investment KwaZulu-Natal and Tourism KwaZulu-Natal are responsible for promoting trade,
investment and tourism in the province, with Durban Investment Promotion Agency (DIPA) concentrating
on Durban. These institutions are supplemented by the new Durban KwaZulu-Natal Convention Bureau
which has been established to promote both the city and province as top conference destinations in Africa.
15
KwaZulu-Natal – key automotive features – 2015
KwaZulu-Natal
Toyota SA Motors
Bell Equipment Co SA, Hino, MAN Truck & Bus and Toyota SA Motors
80
million vehicles
13,5%
units
12,9%
12,2%
16,3%
22,9%
17,1%
Eastern Cape
With its capital Bisho, the Eastern Cape, comprising 6,9 million or 12,6% of the country’s population, is
well served logistically with airports situated in Port Elizabeth, East London, Mthatha and Bisho, and with
ports situated in Port Elizabeth, Coega and East London. The province has been earmarked as a key growth
area for economic development. The automotive sector remains the province’s leading exporter. There has,
however, been steady growth in sectors such as agro-processing, energy, and general manufacturing. The
allocation of two of South Africa’s five industrial development zones (IDZs) to the province is confirmation
of the potential generated by the shipping traffic that operates between Europe, Asia and the Far East.
The Coega IDZ is the largest IDZ in the country and is the main catalyst for Eastern-Cape socio-economic
development and the gateway to global markets. The East London IDZ, one of the country’s leading
specialised industrial parks, is located in Buffalo City, the municipal area which also incorporates Bisho,
the province’s capital. The East London IDZ has also established an Automotive Supplier Park. Its location
provides investors with connections to major markets, both domestically and across the globe. A new R2
billion state-of-the-art container terminal has been opened at the new port of Ngqura, forming part of the
Coega IDZ, near Port Elizabeth.
The Automotive Industry Development Centre (AIDC), the Eastern Cape Development Corporation (ECDC),
the Nelson Mandela Bay Metropolitan Municipality and the Cacadu District Municipality are among the
several organisations promoting the Eastern Cape as a preferred destination for trade and investment.
Three Spatial Development Initiatives (SDIs) – Fish River, Wild Coast and East London/Coega – are also
located in the Eastern Cape.
16
Eastern Cape – key automotive features – 2015
Eastern Cape
Volkswagen Group SA
Mercedes-Benz SA
General Motors Southern Africa
Ford Motor Company of Southern Africa engine plant
FAW Trucks, General Motors/Isuzu, Mercedes-Benz SA and Volkswagen
Group SA
150
million vehicles
6,6%
units
3,8%
4,7%
4,2%
45,9%
48,8%
17
OPERATING ENVIRONMENT OF THE SOUTH
AFRICAN AUTOMOTIVE INDUSTRY
Global vehicle production in 2015 rose by 1,1% to reach a record of 90,88 million vehicles, up from the 89,78
million units produced in 2014. Nineteen countries topped the one million mark in 2015, which is regarded
as an internationally significant vehicle production level. South African vehicle production increased to a
record 615 658 vehicles in 2015, up from the 566 131 units produced in 2014 – a gain of 49 527 vehicles
or 8,7%. The country subsequently improved its global ranking to 21st (24th in 2014) in the world with a
market share of 0,68%. In respect of LCVs South Africa was ranked 14th with a market share of 1,3% in terms
of global LCV production, and in respect of passenger cars the country was ranked 24th with a market share
of 0,5% in terms of global passenger car production. With regards to OEMs’ performance globally, Toyota
maintained its market leadership position in 2015 ahead of VW and GM. Global vehicle sales increased by
2,0% to 89,68 million vehicles in 2015 compared to the 87,92 million units sold in 2014. South Africa, with
617 749 new vehicles sold in 2015, was ranked 22nd in the world in terms of global vehicle sales with a
market share of 0,69%. Despite the decline in the pace of growth in Chinese vehicle production and sales in
2015, at 24,6 million units produced and 24,5 million units sold, China still produced and sold more vehicles
than the US and Japan combined. This trend is clearly emphasising the shift from the traditional west to the
emerging east in terms of vehicle production and consumption.
It is the norm globally for governments to offer both financial and non-financial support to their
automotive industries, with most countries offering a range of support measures to vehicle manufacturers.
Governments actively attempt to attract automotive investments via policy and support measures because
of the huge investment required to set up a plant, as well as in recognition of the benefits that automotive
investments generate in terms of economic growth, employment, fiscal contributions, technology transfer
and the multiplier effect on the broader economy. The South African automotive industry has become
increasingly integrated into the global automotive environment and is now playing in the international
league. The MIDP, implemented in 1995, and its successor, the APDP, implemented in 2013, represent
some of the most innovative and successful programmes to retain a domestic vehicle and component
manufacturing industry, which has continued to contribute positively to the South African economy and
society. In South Africa, the automotive sector is the mainstay of the national industrial base. Accounting
for 7,5% of GDP (breakdown – 4,8% manufacturing and 2,7% retail), 33,5% of manufacturing output and
14,6% of all South African exports in 2015, the industry demonstrates what can be accomplished when
constructive collaboration between stakeholders takes place.
However, competitiveness remains the biggest challenge for the automotive industry in South Africa.
Strong global linkages, along with supplier development and competitiveness improvements, remain
critically important to support the sustainable future development of the South African automotive
industry. The domestic market is generally not large enough to generate sufficient economies of scale for
world-class competitiveness/production, consequently exporting needs to be viewed as a necessary step
towards international competitiveness. Competitiveness improvement is the key driver to unlock growth
opportunities in the domestic automotive industry, based on the shift towards vehicle manufacturing in
low-cost countries. Many of the challenges confronting the South African supplier industry are a reflection of
difficult conditions in the global automotive industry, characterised by a relentless focus on cost reductions
and efficiency improvements. The only way to address these issues is through the extension of world-class
manufacturing standards and improved competitiveness to all suppliers in South Africa.
In this regard, the Automotive Supply Chain Competitiveness Initiative (ASCCI), established in December
2013, has as its ultimate objective to build a successful and sustainable domestic automotive industry by
18
actively developing supply chain competitiveness at a national level. The creation of ASCCI was initiated
jointly by the Dti, OEMs (represented by NAAMSA), suppliers (represented by NAACAM), and organised
labour (represented by NUMSA) in the industry. ASCCI is an important programme that complements
the APDP in supporting this strategic manufacturing sector. Where the APDP is intended to incentivise
production and investment in the domestic automotive industry, the purpose of ASCCI is to support the
development of a sustainable local value chain by upgrading competitiveness and building greater levels
of local value addition. One main objective is to implement the national strategic imperative of sustained
and progressive competitiveness improvement, while other key focus areas of the initiative include
improving component supplier operational capabilities, increasing levels of localisation and achieving
increased levels of manufacturing value addition in the country. The initiative is in support of the APDP’s
vision to manufacture around one million vehicles per annum by 2020 and should have a positive impact
on employment creation, enabling supplier capabilities and an increase in value addition, thus ensuring
the long-term sustainability of the South African automotive industry. ASCCI highlights not only the need
for focused interventions, but also the value of co-operation between stakeholders in the industry in
making these initiatives a success.
South Africa’s strategic location and the potential of Africa as a future market for exports, as well as the
security that the APDP provides for investors, all combine to offer an attractive proposition to global OEMs
so that ongoing investments in the country’s vehicle-manufacturing base continue. Furthermore, with
OEMs announcing plans to manufacture new models in South Africa, it creates opportunities for multinational component suppliers to follow these investments. In line with the APDP’s vision of deepening and
broadening the component supply base in the country, domestic component manufacturers also stand to
benefit and ASCCI may play a role in developing domestic suppliers in areas that involve technologies that
are not currently available in the country.
South Africa’s strategic location
and the potential of Africa as a
future market for exports, as well
as the security that the APDP
provides for investors, all combine
to offer an attractive proposition
to global OEMs so that ongoing
investments in the country’s
vehicle-manufacturing base
continue.
19
SOUTH AFRICA’S AUTOMOTIVE
POLICY REGIME
Governments need business to invest in order to realise their economic goals. On the other hand, business
needs governments to provide a conducive environment for investment. This requires, inter alia, structured
engagements between government and business. The partnership between government and the
automotive sector in South Africa has a long and productive history. Certainty and stability in the official
policy regime, over the past 20 years, have contributed to a number of noteworthy achievements by the
vehicle manufacturing and associated industries, including higher levels of vehicle production and vehicle
exports, massive investments by multi-national automotive companies in manufacturing facilities in South
Africa, significant model rationalisation, employment stability, and an increasingly positive contribution by
the industry to South Africa’s balance of payments.
The APDP underpins the vision that the long-term development of the sector will be best served through
significant increases in production volumes and accelerated growth of the domestic component industry.
At the same time, enhancing firm-level competitiveness must remain a key objective. The APDP was
formulated on the basis of extensive consultation with industry stakeholders and represents a carefully
structured set of provisions to support the future growth and development of the industry by balancing
the interests of consumers, the broader automotive industry and government’s objectives. The APDP was
fully implemented by January 2013 with a view to steer the automotive industry towards producing in
excess of one million vehicles per annum by 2020 with the attendant expansion of the domestic supplier
base.
Since the development of the original APDP framework in 2008, there have been dramatic changes in the
global and domestic economy, raising a concern that there could be limitations in the programme that may
lead to failure to achieve the objectives set for the industry. An early review of the programme commenced
in 2014 and the recommendations on the outcome of the APDP Review were announced in November
2015. The most notable changes to the programme included that OEMs may qualify for incentives under
the programme based on reduced volumes of 10 000 units per plant per annum, instead of the original 50
000 units per annum, as well as a freezing of catalytic converter incentives in 2017, instead of a continuing
reduction. The original framework of the APDP will be outlined below, followed by a summary of the key
findings and proposals of the 2014 Review.
The APDP consists of four pillars that drive the programme:
1.
Import Duty
2.
Vehicle Assembly Allowance (VAA) (rebate mechanism)
3.
Production Incentive (PI) (rebate mechanism)
4.Automotive Investment Scheme (AIS) (cash grant)
The four key elements of the APDP may be described as follows:
Tariffs: Import duties on vehicles and automotive components will remain at 2012 levels (25% on light
vehicles and 20% on original equipment components) through to 2020. A preferential agreement will
result in imported vehicles from the EU paying only 18% duty. These tariffs are meant to provide protection
to justify continued domestic vehicle manufacturing.
20
Vehicle Assembly Allowance (VAA): This support is in the form of duty-free import credits issued to
vehicle manufacturers based on 20% (2013) of the ex-factory vehicle price, reducing to 19% in 2014 and in
2015 to 18% for all light motor vehicles produced domestically. The equivalent value of this to the OEMs
is the allowance multiplied by the duty rate. This represented 4% of the ex-factory vehicle price in 2013
to be reduced to 3,6% in 2015. This support is effectively providing a lower duty rate for domestic vehicle
manufacturers’ import requirements and should provide enough encouragement for high volume vehicle
production in line with the target of doubling domestic production.
Production Incentive (PI): In 2013 this support started at 55% of the designated local value addition,
reducing progressively by 1% annually to 50%, in the form of duty-free import credits. The equivalent
value will be the incentive multiplied by the component/vehicle duty rate, so this represents 11% (on
components) of value-added in 2013, and will reduce to 10% by 2018. There will be an additional amount
for “vulnerable products” which will earn a PI of 80% in 2013 and 2014, reducing thereafter by 5% annually
to 50% in 2020. Value-added has been defined in simple terms as the manufacturer’s selling price less the
value of non-qualifying material and components. For OEM supply, the incentive will flow through the
supply chain to the OEM and, in the case of component exports or replacement parts, to the component
manufacturer. The value-add support is planned to encourage increasing levels of local value addition
along the automotive value chain with positive spin-offs for employment creation. A 25% standard value
is regarded as local value-added on the following qualifying raw materials originating in the Southern
African Customs Union (SACU) which have been beneficiated to suit automotive specifications:
•
•
•
•
•
•
Aluminium
Brass
Leather
Platinum Group Metals (PGMs)
Stainless steel
Steel
With regard to vulnerable products, these high material content products will receive additional support to
avoid a sudden and significant loss of export business. In this regard, 40% of the standard material(s) listed
above and applicable to the following list of products will be regarded as local value-added:
•
•
•
•
•
•
•
•
Alloy wheels
Aluminium products (engine and transmission components, heat exchangers and tubes, suspension
components and heat shields)
Cast iron components (engine/axle/brake/transmission and related types of components)
Flexible couplings
Leather interiors
Machined brass components
Steel jacks
The 40% level will be reduced by 5 percentage points per annum from 1 January 2015 to reach 25% from
1 January 2017 onwards.
Automotive Investment Scheme (AIS): The AIS represents the only industry support that is of physical
cost to the fiscus in the form of a non-taxable cash grant. The total investment approved since inception
of the AIS amounts to R28,5 billion, while the sum total of incentives approved since inception amounts to
R7,8 billion. Since inception, 276 projects have been approved under the AIS, creating 11 953 jobs.
Effective July 2009, this investment scheme replaced the Productive Asset Allowance (PAA). The amended
AIS guidelines, including the People-Carrier AIS, effective from July 2014, provide clarity on the non-
21
taxability of the grant, as well as on the eligibility of automotive tooling companies to apply for the same
benefits as those enjoyed by component manufacturers under the scheme. The AIS provides for a nontaxable cash grant of 20% of the value of qualifying investment in productive assets by light motor vehicle
manufacturers, and increased support of 25% of the value of qualifying investment in productive assets
by component manufacturers and tooling companies, as approved by the Dti. In addition, by achieving
certain performance objectives, companies will be able to earn an additional 5% or 10%. This support is
available to encourage investments by OEMs and component manufacturers in a manner that supports
productive capacity upgrading. A competitiveness improvement cost grant of 20% of qualifying costs will
also be available for automotive component manufacturers. The objective of this benefit is to enhance the
competitiveness of component manufacturers through the improvement of processes, products, quality
standards and related skills development through the use of business development services. The grant is a
function of expenditure incurred by component suppliers to improve competitiveness and must be linked
to a new or replacement model of a light vehicle manufacturer.
In February 2014, the Dti commissioned a review of the APDP with a mandate to make recommendations
to secure optimal outcomes to the sector and economy whilst retaining long-term policy certainty for
investment. The review was aimed at considering the effectiveness of current support measures for
the industry, identifying shortcomings and recommending possible changes or enhancements to the
programme. The final proposals were arrived at after several interactions with industry stakeholders
at various levels, culminating in a consideration by Cabinet. The findings and key proposals may be
summarised as follows:
Findings: The 2020 target of producing 1,2 million vehicles per year is unlikely to be achieved due to a
variety of reasons, such as the fact that the global economy is still recovering from the effects of the 2008/9
financial crisis. Secondly, it will also be extremely difficult to achieve significant expansion and deepening
of the domestic supplier base under the prevailing conditions.
Key proposals: In an effort to sustain and grow the industry whilst steering it towards the APDP vision of
high volume vehicle production, the following proposals will be implemented:
a)
b)
c)
d)
e)
f )
g)
A post-APDP support framework will be developed during the course of 2016 in order to provide a
certain policy environment for automotive manufacturing in South Africa after 2020.
The volume threshold for vehicle production will be reduced from 50 000 units to 10 000 units per
plant per annum in order to allow new entrants into the domestic industry.
The Volume Assembly Allowance (VAA) will be offered on a sliding scale based on volume commencing
at 10% for 10 000 units to 18% at 50 000 units from January 2016.
A suitable capital incentive (AIS) level will be provided for new entrants at the less than 50 000 per
annum threshold.
The production incentive for catalytic converters will be frozen at the 2017 level of 65% rather than
continue the phase down.
The qualification for component suppliers to earn APDP benefits will be tightened in order to avoid
these being earned on non-core automotive products, and priority afforded to those products that
add value in the value chain.
Lastly, Cabinet has mandated an approach to National Treasury for higher investment support for
automotive tooling as a means of encouraging further component localisation. Overall national
budget constraints are noted in this context.
Strategic direction: Government remains committed to the further development of the automotive
industry in line with the National Industrial Policy Framework (NIPF) and the Industrial Policy Action Plan
(IPAP). Long-term development of the sector will be achieved through high vehicle production volumes
and associated local value addition.
22
Other policy imperatives: A post-APDP automotive master plan will be developed and will also seek to
promote meaningful transformation of the industry through the inclusion of previously excluded groups
in the entire automotive value chain. The current situation is characterised by extremely low participation
of black persons in the automotive industry. This is prevalent through all parts of the sector’s value chain
including distribution, retail and after sales/service. It is government’s view that the levels of support
afforded to the industry in South Africa need to be reflected through an appropriately transformed sector.
Implementation plan: The necessary regulatory amendments and administration system for the
programme will be set up and will be in line with the need for a strong monitoring and evaluation system,
but will not be unduly burdensome to stakeholders.
Amendment
Date
Regulatory amendments
On or before April 2016
It is recognised that the APDP on its own will not be able to achieve the 2020 vision of the APDP without
the support and co-ordination of a number of distinct factors, including the alignment between all
stakeholders. NAAMSA compiled a “Roadmap to automotive industry sustainability” which includes and
outlines the following building blocks or key strategic interventions, amongst others, needed to deliver on
the APDP objectives:
SUCCESSFUL REALISATION OF 2020 APDP VISION:
BUILDING BLOCKS / REQUIREMENTS
APDP VISION 2020: PRODUCTION OF 1 MILLION VEHICLES
Stability in official
automotive policy
Progressive, sustained
Reductions in
Introduction of
supplier competitiveness
infrastructure,
Euro V fuel
improvement
logistics and
Stable industrial
quality
other input costs
relations
Effective
environment
Market growth
beneficiation
through review
strategy
of vehicle taxes
Preferential
procurement
Support for
strategic sectors
Incentives
for low / zero
emission
vehicles
Development
finance at
preferential
rates
The global nature of the automotive industry requires the profitable and timely delivery of quality products
at competitive international prices. Failure to do so will ultimately force multi-national automotive
corporations to locate elsewhere. As part of the industry’s Roadmap to 2020, and in support of the
APDP vision, industry initiatives and pro-active activities are taking place in many areas to address these
challenges. Close collaboration and active participation by all role-players in the industry are of the utmost
importance, particularly the Dti, which should champion a number of the building blocks.
The APDP applies to light vehicles (passenger cars and light commercial vehicles) only, although components
produced for heavy commercial vehicles also qualify for the Production Incentive (PI). In parallel with the
launch of the APDP, other significant developments on other complementary fronts include the design of
the Electric Vehicle Roadmap and the medium and heavy commercial vehicle (MCV/HCV) development
strategy. The medium and heavy commercial vehicle sector and bus sector have also received increased
attention. The rationale behind this is the fact that the MCV/HCV sector is labour intensive in terms of
23
assembly, while a more active sector could also broaden South Africa’s component manufacturing
industry. It is believed that this could be an opportunity for the component sector to grow its base and
create additional employment. Recent progress includes the Automotive Investment Scheme (AIS) for this
sector which was published in November 2014 and was backdated to April 2014. The intention is to use AIS
support to drive the future growth and development of the MCV/HCV sector and to promote additional
localisation and employment creation. A number of opportunities are also being exploited to revitalise and
grow bus production in the country through the roll-out of the Bus Rapid Transport Systems in the metros
and the implementation of the revised state preferential procurement framework.
The intention is to use AIS
support to drive the future
growth and development
of the MCV/HCV sector
and to promote additional
localisation and employment
creation.
24
METHODOLOGY – AUTOMOTIVE
EXPORT AND IMPORT DATA
The methodology utilised and applied in the 2016 publication remains unchanged from the previous
publications in order to enable meaningful comparisons. All values are presented in nominal prices. The
trade data in this publication is reflected for South Africa. A significant change in the South African trade
statistics, as approved by the Minister of Finance on 14 November 2013, was that South African trade with
member countries of the Southern African Customs Union (SACU), comprising of Botswana, Lesotho,
Namibia and Swaziland (BLNS), would now be included in South Africa’s trade data to provide a more
accurate reflection of the country’s trade. BLNS country trade data had previously not been included in
the country’s trade statistics because of the free interchange of goods between member countries from a
customs point of view within SACU. The automotive industry’s trade performance has subsequently been
revised with BLNS country data, with retrospective effect, where applicable, in the 2014, 2015, as well as in
the 2016 publication.
The trade data in the Automotive Export Manual – 2016 – South Africa publication is based on the detailed
Customs and Excise statistics for products eligible under the APDP, obtained from the South African Revenue
Service (SARS). The Customs and Excise export values reflect free on board (FOB) values in nominal terms.
The export values of the latest year (2015) are used to rank the countries in order of priority, from the most
to the least important export country destination. The same principle is applied so as to prioritise the export
data regarding regions, vehicles and component categories. There are 263 country export destinations
listed by SARS. For purposes of relevance, one million rand (R1 million) is used in the Automotive Export
Manual – 2016 – South Africa publication as a cut-off level (measure) to determine the top 140 South African
export country destinations. For ease of reference and for comparison purposes, the data with respect to
the component categories, where applicable, is placed in alphabetical order. Percentages are rounded off.
The main purpose of this publication is to discern and highlight export and import trends, to prioritise export
country destinations, to prioritise countries of origin, to identify opportunities via potential growth country
and region destinations, to measure the impact of the country’s trade arrangements on automotive trade
patterns, as well as to identify growth in products exported to specific country destinations. The publication
also serves as a guide to track the export and import performance of the South African automotive industry
under the new APDP. Due to certain limitations, Customs and Excise statistics cannot always distinguish
between automotive components eligible in terms of the APDP and non-APDP components, therefore
certain categories, such as automotive tooling, may contain a small percentage of non-APDP components.
25
EXPORTS TO COUNTRIES
South Africa’s track record as a reliable manufacturer and supplier of high-quality vehicles and automotive
components to world markets is well established. Transformation of trade through global value chains is
bringing far-reaching change to companies and economies worldwide. From an automotive perspective,
the South African automotive industry forms an important part of international supply chains by being
increasingly integrated into the global automotive environment. The focus of the domestic automotive
industry is to build on existing exports and to escalate the importance of exploring and exploiting new
export opportunities. The South African automotive industry’s traditional trading partners have been
Europe, Japan and North America, which remain important as they are long-standing relationships that
come with technology, knowledge transfer and they offer markets that are not without further possibilities.
However, in recent years, Africa and Asia have become important destinations for South African automotive
products, as these economies have grown and trade ties have strengthened. The wider geographical
exposure also mitigates the impact of domestic or regional cyclical economic conditions by diversifying
risk.
The following table reveals that the South African automotive industry is strengthening its global export
footprint with the export values to 30 countries more than doubling on a year-on-year basis in 2015. The
reach in respect of the number of destinations of total automotive exports (vehicles and automotive
components) from South Africa remain high. The number of export destinations, for values in excess of R1
million, reached 140 in 2015, with 24 countries recording export values in excess of R1 billion and 64 countries
recording export values in excess of R100 million. First-world markets remain the main destinations for
South African vehicles and automotive components. However, diversification into new emerging markets
is a continuing trend and underlines the automotive industry’s competitiveness drive and a widening of
the country’s traditional trading base. The latter is highlighted by new export destinations appearing in the
industry’s export list of countries every year, as well as the specific destinations to which the export values
more than doubled on a year-on-year basis. From 2014 to 2015, the total export values more than doubled
in the case of 30 countries, which include: Brazil, India, United Arab Emirates, Hong Kong China, Ethiopia,
Qatar, Estonia, Ireland, Slovenia, Lebanon, Pakistan, Philippines, Bahrain, Togo, Iceland, Eritrea, Panama,
Bolivia, St Helena, Sri Lanka, Nicaragua, Dominican Republic, Cyprus, Guatemala, Belize, Yemen, Bosnia &
Herzegovina, Netherlands Antilles, Maldives and Kyrgyzstan.
26
EXPORTS
Total automotive export value and ranking by country – 2014 vs 2015
Country
2014
R million
2014
Ranking
2015
R million
2015
Ranking
Germany
21 651,5
1
34 992,1
1
USA
17 145,0
2
20 946,9
2
Belgium
8 157,9
4
13 162,2
3
Namibia
8 322,1
3
9 440,0
4
Japan
6 616,8
5
7 809,5
5
UK
5 497,4
6
7 436,0
6
Australia
3 939,3
8
5 257,1
7
Botswana
4 386,1
7
4 815,7
8
Spain
2 338,0
11
4 073,4
9
France
1 543,5
16
2 696,2
10
Mozambique
2 937,6
9
2 639,2
11
Zambia
2 541,4
10
2 485,3
12
Brazil*
1 091,8
18
2 430,3
13
Zimbabwe
1 959,7
12
2 208,0
14
Thailand
1 025,0
22
1 648,7
15
Kenya
909,4
25
1 451,5
16
India*
561,0
30
1 416,8
17
Canada
1 324,8
17
1 400,2
18
Nigeria
1 766,9
14
1 385,8
19
Swaziland
1 547,6
15
1 280,7
20
United Arab Emirates*
495,7
35
1 203,6
21
Democratic Republic of Congo
1 035,4
21
1 140,4
22
Saudi Arabia
635,8
29
1 139,8
23
Algeria
923,3
24
1 047,2
24
24 COUNTRIES ABOVE R1 BILLION
Argentina
1 056,2
19
990,8
25
Lesotho
823,8
27
960,6
26
Ghana
494,2
36
871,1
27
Hungary
520,4
33
851,9
28
Singapore
1 813,9
13
829,7
29
Czech Republic
864,0
26
783,7
30
Angola
1 047,9
20
700,5
31
Tanzania
531,4
31
653,7
32
Taiwan
522,2
32
611,6
33
Korea Republic South
508,0
34
566,1
34
Turkey
438,6
39
534,1
35
Malawi
448,4
38
530,3
36
Netherlands
936,3
23
515,2
37
Hong Kong, China*
208,1
45
506,4
38
Poland
789,2
28
441,9
39
Mexico
224,6
44
413,9
40
27
EXPORTS
Ethiopia*
101,6
60
389,4
41
Uganda
186,6
48
344,8
42
Sweden
178,7
51
339,7
43
Mauritius
256,8
43
303,7
44
Malaysia
271,1
42
302,5
45
New Zealand
375,2
40
293,0
46
Romania
170,2
53
271,2
47
Gibraltar
182,5
50
270,0
48
Italy
204,1
46
236,0
49
Russia
467,7
37
230,6
50
Qatar*
88,3
64
218,7
51
Portugal
142,5
56
209,0
52
China
354,8
41
208,1
53
Gabon
186,0
49
203,9
54
Kuwait
102,0
59
194,6
55
Austria
173,1
52
188,1
56
Estonia*
73,4
67
179,9
57
Greece
98,4
61
154,5
58
Madagascar
188,3
47
136,7
59
Sudan
78,7
65
133,9
60
Djibouti
67,3
68
132,0
61
Norway
95,1
62
128,6
62
Switzerland
91,0
63
127,6
63
Ireland*
39,3
79
123,9
64
64 COUNTRIES ABOVE R100 MILLION
Ivory Coast
151,4
55
99,0
65
Tunisia
45,0
74
89,7
66
Senegal
60,6
71
87,1
67
Rwanda
63,0
69
79,1
68
Oman
108,5
58
72,9
69
Slovenia*
20,7
93
71,0
70
Lebanon*
25,4
88
68,8
71
Pakistan*
5,5
118
60,4
72
Chile
120,2
57
59,6
73
Philippines*
14,9
97
54,9
74
Finland
31,0
85
52,1
75
Guadeloupe
36,0
82
51,1
76
Republic of Congo
36,8
81
50,2
77
Israel
31,2
84
46,7
78
Cameroon
46,7
73
46,5
79
Bahrain*
11,9
103
42,4
80
Togo*
9,9
107
41,2
81
Mali
42,5
76
40,6
82
Indonesia
42,0
77
39,2
83
28
EXPORTS
Egypt
60,0
Iceland*
Eritrea*
72
38,5
84
12,2
102
37,3
85
4,7
121
35,3
86
Seychelles
37,8
80
33,9
87
Denmark
29,6
87
33,9
88
Burkina Faso
25,0
89
33,7
89
Martinique
23,6
90
33,2
90
Panama*
13,1
101
32,6
91
French Guiana
18,5
95
31,9
92
Reunion
23,4
91
31,2
93
Trinidad & Tobago
32,1
83
30,2
94
Bolivia*
-
-
26,9
95
Bulgaria
156,2
54
26,5
96
Sierra Leone
61,6
70
24,0
97
St Helena*
8,6
109
21,5
98
Sri Lanka*
6,1
113
20,5
99
Liberia
76,4
66
19,7
100
Guinea
22,8
92
18,8
101
Ecuador
30,0
86
15,5
102
Nicaragua*
0,2
-
14,5
103
Kazakhstan
8,8
108
13,5
104
Benin
10,3
105
12,5
105
Colombia
9,9
106
12,2
106
Dominican Republic*
4,6
124
12,1
107
Mauritania
43,5
75
12,0
108
Cyprus*
4,1
126
9,7
109
Jamaica
7,6
110
9,4
110
Peru
7,5
111
9,2
111
Vietnam Republic
4,6
123
8,8
112
Burundi
13,4
98
8,4
113
Guatemala*
2,0
134
8,4
114
Belize*
1,0
145
7,8
115
Jordan
11,7
104
5,5
116
Barbados
4,4
125
5,2
117
Morocco
13,4
99
4,7
118
Brunei
19,5
94
4,5
119
Fiji
2,1
133
3,9
120
New Caledonia
2,3
131
3,2
121
Central African Republic
5,9
114
3,2
122
Somalia
13,3
100
2,8
123
Equatorial Guinea
5,1
119
2,8
124
Comoros
5,5
117
2,6
125
Yemen*
0,3
-
2,3
126
Bangladesh
1,8
136
2,3
127
29
EXPORTS
Bosnia & Herzegovina*
-
-
2,2
128
Gambia
2,2
132
1,9
129
Mayotte
1,0
146
1,8
130
Netherlands Antilles*
0,2
-
1,8
131
Maldives*
0,2
-
1,5
132
Iran
1,5
138
1,5
133
Chad
1,2
142
1,4
134
Cape Verde Islands
1,1
144
1,4
135
Honduras
1,8
137
1,3
136
Grenada
1,0
147
1,2
137
Kyrgyzstan*
-
-
1,1
138
Luxembourg
6,4
112
1,1
139
Niger
3,3
127
1,0
140
Source: AIEC, SARS
*Countries with export values more than doubling year-on-year
30
EXPORTS
EXPORTS TO REGIONS
South Africa is an active member of the World Trade Organisation (WTO) and has strong bilateral ties with
a substantial number of the world’s largest economies. The country benefits from a strong network of
trade agreements with a number of major partners and blocs, both within the region and further afield.
The country continues to seek beneficial trade arrangements with individual countries and trading blocs.
In light of the current trade arrangements enjoyed by South Africa, the country is extremely open to many
of its largest import partners, in particular from the EU, the domestic automotive industry’s main trading
partner. Automotive trade with the EU amounted to R146 billion or 49% of South Africa’s total automotive
trade of R297,7 billion in 2015. However, new trade and business links in Africa, Asia, the Middle East, South
America and, importantly, the new emerging automotive giants, China and India, both members of BRICS
along with South Africa, are being forged. Regional integration is an African priority and South Africa is
well positioned to capitalise on opportunities on the continent as Africa is the fastest-growing continent
after Asia. Currently, only R34,6 billion or 11,6% of South Africa’s total automotive trade is conducted with
partners on the continent. However, Africa is where most opportunities lie, due primarily to demographic
pay-offs, technological innovations and energy developments. There are still strategic barriers to greater
penetration of South African exporters in the rest of the continent, including infrastructure and trade
barriers, but these would be easing over time.
The tables on the following pages reveal the South African automotive industry’s trade patterns with major
trading blocs, including the European Union (EU), the North American Free Trade Area (NAFTA), Africa, the
Southern African Development Community (SADC) and the Common Market of South America (Mercosur).
Regional integration
is an African priority
and South Africa
is well positioned
to capitalise on
opportunities on the
continent as Africa is
the fastest-growing
continent after Asia.
31
EXPORTS
European Union
Europe remains the South African automotive industry’s most important trading partner, accounting for
R67,1 billion or 44,3% of total automotive exports of R151,5 billion and R78,9 billion or 54,0% of total vehicle
and automotive component imports of R146,2 billion in 2015. Since the EU also accounts for more than half
of the country’s vehicle exports in volume terms, developments in the region have a direct and measurable
impact on the domestic automotive industry’s overall performance. The trade framework between
South Africa and the EU is well entrenched and will be further enhanced in 2016 with the ratification and
implementation of the Economic Partnership Agreement (EPA) between the EU and SADC group.
South Africa’s trade relations with the EU have been governed by the Trade, Development and Co-operation
Agreement (TDCA) which became effective on 1 January 2000. The agreement is based on preferential
import duty rates for certain products having been deemed to originate in the partner country. South
Africa had granted duty-free status to 86% of its EU imports by 1 January 2012, while the EU had provided
duty-free status to 95% of South Africa’s exports since 1 January 2010. The automotive part of the TDCA was
only concluded on 15 December 2006. As a result, the 3% import duty on original equipment components
and the 4,5% duty on aftermarket parts were reduced to duty-free on 15 December 2006, while the 10%
import duty on passenger cars was reduced to 3,5% on 15 December 2006, to 1,5% on 1 January 2007
and fell away completely in January 2008. As far as commercial vehicles were concerned, South African
commercial vehicle exports to the EU were already duty-free and unaffected by the agreement.
South Africa returned the compliment with a 7% preference to the EU on passenger cars and light
commercial vehicles and an 8% preference on medium and heavy commercial vehicles and buses. Original
equipment components received no preference, but a large number of aftermarket automotive parts
qualified for lower import duties. In order to qualify for zero tariffs into the EU, South African vehicles and
components must contain at least 60% local content in respect of the rules of origin. The definition of
local content includes South African raw materials, labour, parts, transport, manufacturing costs and profit
margins, as well as the value of components and sub-components originally sourced from Europe.
On 15 July 2014, the Southern African Development Community (SADC) and the EU initialled the European
Partnership Agreement (EPA), which is a reciprocal trade arrangement, and once ratified, will replace the
trade components of the current TDCA which has governed relations between the EU and the Southern
African Customs Union (SACU). The six countries making up the Southern African Development Community
(SADC) EPA group comprise Botswana, Lesotho, Mozambique, Namibia, Swaziland and South Africa. In
future Angola may join too. Overall the EPA represents a commercial improvement over the TDCA, and will
translate into better trade performance. South Africa opted to enter the EPA negotiations in a bid to seek
improvements in the TDCA and to further harmonise trade relations within the region as well as further
African integration, given that there are also EPA discussions under way with regional blocs in West, East
and Central Africa. The new deal preserves coherence within SACU, particularly with regard to maintaining
the common external tariff, and improves the country’s access to the EU market.
The following table reveals that total automotive exports (vehicles and components) to the EU amounted
to R67,1 billion in 2015, a substantial improvement of R23,3 billion or 53,2% compared to the R43,8 billion
export value in 2014. Exports in Euro terms also increased by a significant 55,8% year-on-year. Rising
demand by the region’s top five markets, Germany, UK, France, Italy and Spain benefitted vehicle exports to
the EU, which increased from 116 077 units in 2014 to 173 796 units in 2015. Exports to the 13 new member
countries forming part of the expanded EU comprised R2,64 billion or 3,9% of the R67,1 billion export value
in 2015 compared to the R2,6 billion export value in 2014.
32
EXPORTS
Exports to the EU by product category – 2011 to 2015
Component
2011
2012
2013
2014
2015
TOTAL (R million)
38 577,4
34 030,7
35 096,2
43 801,2
67 113,9
TOTAL (average Euro million)
3 827,1
3 225,7
2 737,6
3 041,8
4 746,4
Air conditioners
17,7
22,1
22,1
31,2
38,9
Alarm systems
35,0
29,6
39,0
22,2
14,2
Automotive tooling
104,0
160,6
161,5
202,3
229,1
Axles
125,7
92,5
186,6
146,0
195,2
Batteries
35,5
28,7
68,8
103,0
70,2
Body parts / panels
25,8
22,1
30,9
59,4
91,1
Brake parts
37,4
21,7
21,7
33,2
29,3
Car radios
30,0
36,1
0,5
1,1
1,1
16 013,7
12 389,9
13 288,6
14 124,0
13 904,5
143,8
140,1
169,8
196,9
221,5
6,1
16,3
7,5
9,2
75,2
Engine parts
741,0
834,0
1 019,3
1 366,8
1 109,5
Filters
165,3
131,7
157,0
164,3
171,3
Gaskets
29,6
34,2
42,7
41,7
41,3
Gauges / instruments / parts
45,2
42,9
44,7
94,9
62,3
Gear boxes
68,8
14,8
4,5
18,3
4,7
Automotive glass
256,0
210,6
324,9
380,4
307,2
Ignition / starting equipment
22,2
15,4
21,7
35,6
19,5
Jacks
14,2
22,8
10,6
0,9
5,8
Lighting equipment
139,2
131,4
154,7
145,0
136,8
Radiators / parts
642,3
577,3
672,6
690,3
685,4
Road wheels / parts
401,4
251,5
123,7
81,7
121,8
Seats
0,6
0,3
0,5
1,6
3,7
Seat belts
1,1
0,7
0,4
1,3
0,6
Stitched leather seats / parts
2 157,3
1 693,4
1 499,3
1 244,1
916,6
Shock absorbers / suspension parts
373,8
366,5
386,6
388,6
324,6
Silencers / exhausts
1 790,4
1 326,8
839,7
214,3
236,8
Springs
21,5
7,8
7,3
6,3
3,3
Steering wheels / columns / boxes
110,0
123,9
131,8
13,1
11,1
Transmission shafts
230,5
247,0
217,1
286,0
194,1
Tyres
624,3
392,5
274,4
443,6
425,5
Wiring harnesses
61,1
63,9
75,9
94,5
92,0
Other parts
1 423,5
1 250,0
1 240,7
1 472,5
1 983,1
Light vehicles
12 619,2
13 327,2
13 841,6
21 653,5
45 376,1
64,2
4,4
7,5
33,4
10,5
Clutches / shaft couplings
Engines
Medium / Heavy vehicles
Source: AIEC, SARS
33
EXPORTS
Top export destinations in the EU
with export value – 2015
34
EXPORTS
NAFTA (North American Free Trade Area)
The North American Free Trade Area consists of the USA, Canada and Mexico and represented South
Africa’s second largest trading region in 2015. Exports to NAFTA amounted to R22,76 billion or 15,0% of
total automotive exports of R151,5 billion in 2015.
South Africa is a beneficiary of the USA’s Generalized System of Preferences (GSP), which was instituted on
1 January 1976 and grants duty-free status to some goods. Since 2001, trade with the US has significantly
increased due to the African Growth and Opportunity Act (AGOA), which is an extension of the GSP and
allows duty-free access of additional products into the US. The cornerstone of AGOA is the expansion of
development and trade with Africa, providing diverse opportunities to grow and integrate the continent
into the global economy. South Africa, together with 38 other sub-Saharan African countries, has been
designated as eligible countries in terms of the Act. Under AGOA, 98% of South African exports to the
US enter the country without tariffs or quotas. A major portion of the country’s exports to the US are
manufactured goods, such as vehicles, which have assisted in enhancing manufacturing in South Africa.
Duty rates into the US normally range from 2,5% on passenger cars to 25% in respect of commercial
vehicles. The effective commencement date of the duty-free access provisions in terms of AGOA was 1
January 2001 to last until 30 September 2008, which was subsequently extended until 30 September 2015.
A 10-year extension to the African Growth and Opportunity Act (AGOA) was passed which was due to
expire at the end of September 2015. AGOA had been the foundation of America’s trade relationship
with Africa for 15 years. Its renewal for a 10-year period represented the longest-ever extension in the
programme’s history. South Africa, however, faced an out-of-cycle review which assessed the country’s
continued eligibility under Section 104 (a) of the Act which deals with a beneficiary’s progress towards
being a market-based economy with open, rules-based trading and minimal government interference.
The out-of-cycle review, owed primarily to concerns over restrictions on American poultry exports as well
as health and safety restrictions on other meat products, has subsequently been concluded. South Africa’s
AGOA eligibility, along with the eligibility of all other beneficiaries, would remain subject to a yearly review
over the 10-year extension period for AGOA to mid-2025. It is important to note that the AGOA legislation
has always included an annual eligibility review for beneficiary countries.
There are considerable mutual benefits to be derived from two-way trade in vehicles and components,
for both the US and South Africa. Moreover, growing two-way trade contributes positively to sustaining
employment in the US supplier and vehicle manufacturing industries, as well as that in South Africa and
sub-Saharan African countries. The South African automotive industry is increasingly involved in regional
integration and the building of capacity in other African countries. Both the US and countries involved
under AGOA have the potential of generating significant economic benefits from trade as AGOA countries
continue to develop, modernise and industrialise.
The following table reveals that in 2015, exports to NAFTA, at R22,76 billion, increased by 21,8% compared
to the R18,69 billion exported in 2014. Despite the substantial weakening of the rand against the US dollar
in 2015, exports to NAFTA in US dollar terms also increased by 3,4%. Vehicle production and sales in NAFTA,
dominated by the US, increased by 3% and 6,2% year-on-year, respectively. The domestic automotive
industry benefitted from this upward trend and the increase in the export value could mainly be attributed
to the increase in light vehicle exports to the US from 42 230 units in 2014 to 48 669 units in 2015. Vehicle
exports to the US in 2015 comprised mainly of the left-hand drive BMW 3-series as well as the new
generation Mercedes-Benz C-Class models. The 35,4% year-on-year increase in automotive component
exports to NAFTA could mainly be attributed to expanded catalytic converter exports to the region.
35
EXPORTS
Exports to NAFTA by product category – 2011 to 2015
Component
2011
2012
2013
2014
2015
TOTAL (R million)
20 912,1
20 900,7
19 138,2
18 691,1
22 756,9
TOTAL (average US$ million)
2 884,4
2 545,8
1 983,2
1 724,3
1 784,9
Air conditioners
0,2
0,1
0,1
3,1
6,5
Alarm systems
1,9
2,8
2,9
1,5
3,3
Automotive tooling
77,4
36,9
46,5
45,4
140,9
Axles
119,3
80,9
40,6
125,0
80,9
-
0,3
0,1
0,6
0,1
Body parts / panels
3,0
3,4
1,3
3,4
0,5
Brake parts
1,6
3,7
2,6
2,0
2,6
2 263,0
2 416,1
2 399,7
3 241,0
4 355,2
14,6
19,9
26,2
35,2
35,1
Engines
44,2
13,4
6,5
3,5
15,4
Engine parts
807,0
791,9
675,1
814,7
924,0
Filters
20,1
39,5
25,0
3,5
1,9
Gaskets
1,5
1,9
2,9
6,6
9,8
50,4
54,1
18,7
30,8
55,0
Gear boxes
31,0
41,4
33,7
49,4
59,6
Automotive glass
1,3
0,5
0,1
0,4
0,8
2,9
10,2
4,0
4,1
4,6
Jacks
39,4
34,0
17,3
1,4
1,5
Lighting equipment
19,7
12,9
24,6
8,7
3,0
Radiators / parts
199,9
163,4
194,4
248,4
300,3
Road wheels / parts
13,3
5,7
5,5
19,4
48,2
Seats
0,4
4,8
0,1
0,5
0,8
Seat belts
0,3
-
-
-
-
16,0
16,7
16,1
11,2
8,9
9,0
22,5
3,6
43,7
57,6
221,9
257,8
262,2
165,0
179,3
Springs
0,5
0,8
0,4
0,3
0,5
27,5
31,7
47,5
14,2
2,9
Transmission shafts
20,4
28,0
9,9
20,8
24,3
Tyres
106,7
128,9
58,5
48,4
136,5
5,1
7,4
2,1
6,5
10,3
339,6
736,9
258,9
260,5
598,0
16 336,9
15 928,8
14 951,1
13 471,2
15 684,9
116,1
3,4
-
0,7
3,7
Batteries
Wiring harnesses
Other parts
Light vehicles
Source: AIEC, SARS
36
EXPORTS
Top export destinations in NAFTA
37
EXPORTS
Africa
Africa remains a priority focus for the South African automotive industry and the continent accounted for
R34,1 billion or 22,5% of South Africa’s total automotive exports in 2015, up by R2,5 billion or 7,8% from the
R31,6 billion in 2014.
According to the International Organisation of Motor Vehicle Manufacturers (OICA), vehicle production in
Africa grew by 14,0% from 842 368 units in 2014 to 960 527 units in 2015, with the continent’s market share
comprising 1,1% of global vehicle production in 2015. South Africa, with 615 658 units, accounted for 64%
of Africa’s total vehicle production, while mainly Morocco, with 288 329 units, and Egypt, with 36 000 units,
accounted for the balance. Total new vehicle sales in Africa declined by 8,8% from the peak of 1,7 million
units recorded in 2014 to 1,55 million units in 2015. New passenger car sales totalled 1,126 million units and
commercial vehicle sales 425 000 units. South Africa and northern African countries constituted the main
markets. Used car imports are not allowed in South Africa and in northern African countries but comprise
the bulk of sales in the rest of the countries on the continent.
Africa’s inadequate infrastructure is one of the main factors inhibiting trade, integration and economic
development. Within sub-Saharan Africa there are 15 landlocked countries, with an average distance of
1 000km to the sea. This means that these countries are reliant on infrastructure networks to conduct
trade and grow their industries and economies. The current poor state of transport links between African
countries continues to stifle trade and expansion opportunities on the continent. In addition, the slowdown
in China’s economy and the associated ending of the commodity super cycle are having a major influence
on the immediate growth prospects for Africa. However, Africa’s youthful population, rapid urbanisation
and vast natural resources continue to make it an attractive destination. The vehicle ownership ratio in
Africa at present is only in the order of 44 vehicles per 1 000 persons. Demand for vehicles is highly income
elastic and the continent therefore represents huge opportunities in terms of consumption, as the buying
power of the African consumer is on the rise and the continent’s middle class is increasing exponentially.
The following table reveals the top 10 new vehicle markets in Africa in 2015 versus 2014.
Top 10 new vehicle markets in Africa – 2014 vs 2015
Countries and 2015 ranking
Total new vehicle sales Total new vehicle sales
2014
2015
Passenger cars
2015
Commercial vehicles
2015
1. South Africa
644 259
617 749
412 670
205 079
2. Egypt
349 100
332 100
258 400
73 700
3. Algeria
246 400
181 400
134 100
47 300
4. Morocco
122 060
131 910
120 875
11 035
5. Libya
45 000
54 100
38 500
15 600
6. Tunisia
50 900
48 500
36 100
12 400
7. Reunion
25 757
27 697
22 288
5 409
8. Nigeria
53 900
26 400
18 800
7 600
9. Kenya
13 500
14 100
2 900
11 200
10. Mauritius
10 600
10 700
6 400
4 300
1 699 621
1 550 256
1 125 533
424 723
Total new vehicle sales
Source: NAAMSA/Lightstone Auto, OICA
38
EXPORTS
It is important for the South African automotive industry to forge close links with automotive programmes
currently under development in Africa. Strong regional industrial economies would enhance manufacturing
opportunities in the relevant countries, providing a platform for intra-regional trade and economic
partnerships of mutual benefit. Such industrial partnerships in the automotive industry are the norm rather
than the exception, such as in South-East Asia, NAFTA, as well as Mexico and Brazil. It is likely that an Africa
automotive industry-wide initiative could emerge in the near future. Such an initiative will make it possible
for African countries to supply each other with original equipment components, as well as aftermarket parts
and vehicles, while also exporting these to other regions. This should undoubtedly be Africa’s ambition.
South Africa, with its know-how and built-for-Africa vehicles is ideally placed to benefit from the increased
demand for vehicles, assembly kits and automotive components on the continent. South Africa’s proximity
compared to other emerging markets and its understanding of business conditions and practices in other
African countries places it in the favourable position of being the ideal partner for assistance in establishing
a vehicle assembly operation, in return for some kind of preferential treatment while the component sector
is being developed there. The wealth of management experience in the country and understanding of the
issues that an African production site entails could ensure the optimising of operations and costs in both
countries.
The following table reveals South African automotive exports to the African continent. Annual comparisons
should take account of the following – the 2013, 2014 and 2015 total automotive export data to Africa
provides two comparisons: one comparison includes exports to Botswana, Lesotho, Namibia and Swaziland
(BLNS countries) in line with the new publishing format of South African trade data provided by SARS, and
the other comparison excludes exports to BLNS countries in order to facilitate historical comparisons. Total
automotive exports to Africa, excluding BLNS country data, increased by 6,3% from the R16,56 billion in
2014 to R17,60 billion in 2015, while total automotive exports, including BLNS country data, increased by
7,8% from the R31,62 billion in 2014 to R34,09 billion in 2015. Although the export values to sub-Saharan
countries reflected year-on-year increases, vehicle exports of the domestic industry’s top destinations in
Africa, namely to Algeria and Nigeria, reflected a substantial decline due to new vehicle import regulatory
changes being implemented on new vehicle imports since 2014. Vehicle exports to 40 African countries
declined from 61 839 units in 2014 to 42 594 units in 2015.
South Africa’s proximity compared to other
emerging markets and its understanding of
business conditions and practices in other African
countries places it in the favourable position
of being the ideal partner for assistance in
establishing a vehicle assembly operation, in return
for some kind of preferential treatment while the
component sector is being developed there.
39
EXPORTS
Exports to Africa by product category – 2011 to 2015
Component
2011
2012
2013*
2014*
2015*
2013**
2014**
2015**
TOTAL (R million)
Including BLNS country data
19 997,2** 25 862,2**
TOTAL (R million)
Excluding BLNS country data
11 588,9*
17 796,9*
17 887,9*
16 562,5*
17 598,8*
Air conditioners
12,6
18,6
18,1
36,4
23,5
30,1
45,6
42,3
Alarm systems
14,7
21,4
21,6
51,8
45,2
36,6
85,3
77,7
Automotive tooling
99,7
314,8
291,1
283,7
540,3
396,8
442,1
688,6
Axles
20,9
42,9
61,4
57,9
51,3
87,3
87,0
128,3
Batteries
106,3
146,7
166,6
203,7
190,2
209,8
278,3
285,2
Body parts / panels
23,6
80,8
77,6
22,8
38,2
144,9
122,5
126,7
Brake parts
33,6
54,4
70,6
75,4
79,2
145,7
165,9
182,1
Car radios
5,8
9,9
8,2
9,7
7,5
24,2
20,4
22,1
63,8
90,2
86,1
88,3
99,5
107,0
104,3
118,3
20,9
31,9
29,6
39,4
36,7
72,5
85,9
95,6
Engines
104,7
194,2
187,3
238,8
333,2
238,8
319,9
443,0
Engine parts
182,5
339,5
334,1
469,1
475,7
585,0
732,4
791,5
Filters
110,4
162,4
154,7
202,5
179,3
207,7
294,5
273,6
Gaskets
33,1
59,1
79,1
83,4
90,4
106,7
114,8
133,7
164,6
210,5
244,7
311,2
358,9
312,8
403,8
480,0
Gear boxes
19,3
31,6
41,2
25,8
35,8
74,3
82,6
79,0
Automotive glass
11,9
13,4
15,7
17,9
17,2
54,6
64,1
73,4
61,1
73,3
64,5
105,3
96,6
136,2
192,2
207,1
Jacks
14,3
15,0
24,0
31,7
23,1
26,9
36,3
28,0
Lighting equipment
25,6
34,5
42,6
44,4
47,8
53,8
71,6
89,6
Radiators / parts
22,2
32,4
29,5
26,7
28,8
58,4
59,8
73,5
Road wheels / parts
21,3
70,8
68,3
30,4
36,8
110,3
68,9
82,4
Seats
2,0
3,7
4,3
8,9
8,4
9,7
16,1
18,1
Seat belts
1,5
1,5
1,7
2,5
2,8
4,2
4,9
5,9
10,0
2,4
4,7
7,2
4,3
11,0
17,0
54,1
31,7
33,1
33,8
37,3
45,8
58,5
63,9
79,3
4,6
8,7
5,7
8,3
5,4
15,5
16,6
14,5
Springs
4,7
6,8
10,2
6,8
7,8
16,9
13,4
13,6
5,9
11,0
12,1
10,8
11,0
20,1
22,9
23,8
Transmission shafts
219,7
267,2
322,9
426,8
389,6
448,6
573,8
542,7
Tyres
685,6
810,8
725,3
941,8
762,6
1 352,6
1 616,3
1 455,0
2,8
12,3
12,2
17,4
21,5
33,2
159,2
139,4
Other parts
1 768,4
2 517,2
2 846,8
3 385,8
3 204,5
5 325,8
6 384,6
6 273,4
Light vehicles
6 917,7
10 857,2
10 598,9
7 555,5
8 487,9
16 958,1
15 176,8
17 091,8
761,4
1 216,7
1 192,7
1 697,1
1 812,0
2 719,9
3 677,5
3 856,9
Wiring harnesses
30 194,5** 31 621,2** 34 090,2**
Source: AIEC, SARS
* Comparison excluding BLNS (Botswana, Lesotho, Namibia and Swaziland) country exports
** Comparison including BLNS (Botswana, Lesotho, Namibia and Swaziland) country exports
40
EXPORTS
Top export destinations in Africa
41
EXPORTS
Southern African Development
Community (SADC)
South Africa’s automotive exports to SADC comprised 80,1% or R27,3 billion of its R34,1 billion automotive
exports to the African continent. Contributing factors to the significant trade with the country’s neighbours
include the geographical proximity of these markets, which are relatively easily accessible by road or by rail,
as well as the establishment of a free trade area within SADC.
South Africa’s participation in SADC, comprising 15 sub-Saharan African countries, allows access to a market
of approximately 300 million people and an estimated regional GDP of US$600 billion. SADC operates as a
free trade area. The 15 SADC countries include: Angola, Botswana, Democratic Republic of Congo, Lesotho,
Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania,
Zambia and Zimbabwe. South Africa joined the SADC in August 1994. The SADC Protocol on Trade was
signed on 24 August 1996 and came into force on 25 January 2000. Currently, Angola and the Democratic
Republic of Congo remain outside the agreement.
The SADC FTA was launched in 2008 when 85% of tariff lines became duty-free. The remaining 15% of
tariff lines were deemed sensitive and were accorded a longer liberalisation timeframe up to 2012, except
for Mozambique, which would have completed its tariff phase-down with respect to imports from South
Africa by 2015. The intention is that the agreement encourages economies of scale, creating competitive
SADC-wide industries and thereby increasing intra-regional trade and enhancing foreign investment into
the region. By 2012, about 98% of SADC merchandise trade was subject to zero tariffs. The phase-down
offers are country-specific on the principle of reciprocity, for example, tariff preferences will be extended
only to member states that have submitted their instruments of implementation.
In advancing integration in both SACU and SADC, it is clear that trade integration must be combined with
determined efforts to build diversified production capacity in the region. A strong departure point for all
member states in SADC to increase trade and value integration would be to address challenges relating
to cross-border road transport, including inadequate infrastructure, inefficient regulatory and corridor
management systems as well as delays impacting on the cost of products being traded in the region.
Potential significant logistics costs savings could be realised with focused cross-border road transport and
trade facilitation initiatives that have the potential to reduce delays on regional corridors. A reduction in
delays would result in increased trade volumes and earnings per corridor, as well as the improved facilitation
of trade, regional integration and economic development. In SADC, the focus currently is on consolidating
the achievements of the free trade area, and working to extend African integration through the pursuit of
the tripartite FTA including SADC, the East African Community (EAC) and the Common Market for Eastern
and Southern Africa (COMESA).
The following table reveals South Africa’s automotive exports to SADC. Annual comparisons should take
account of the following – the 2013, 2014 and 2015 total automotive export data to SADC provides two
comparisons: one comparison includes exports to Botswana, Lesotho, Namibia and Swaziland (BLNS
countries) in line with the new publishing format of South African trade data provided by SARS, and the
other comparison excludes exports to BLNS countries in order to facilitate historical comparisons. Total
automotive exports to SADC, excluding BLNS country data, increased by only 0,2% from the R10,80 billion
in 2014 to R10,83 billion in 2015. Total automotive exports, including BLNS country data, increased by 5,6%
from R25,86 billion in 2014 to R27,32 billion in 2015. Several SADC countries have consistently remained
amongst the South African automotive industry’s top export destinations over the past two decades,
and the increase in export sales of commercial vehicles and aftermarket replacement parts reflects this
continuing trend.
42
EXPORTS
Exports to SADC by product category – 2011 to 2015
Component
TOTAL (R million)
TOTAL (R million)
Excluding BLNS country data
2011
2012
2013*
2014*
2015*
14 331,4** 17 521,8**
2013**
2014**
2015**
21 865,2** 25 860,3** 27 318,0**
5 930,9*
9 456,4*
9 558,6*
10 801,4*
10 826,6*
Air conditioners
11,8
16,2
12,0
32,8
19,5
24,0
42,0
38,3
Alarm systems
10,4
14,5
14,5
31,6
32,4
29,5
65,0
64,9
Automotive tooling
68,3
145,3
157,1
201,5
193,7
262,8
359,8
342,0
Axles
19,5
40,8
59,5
37,0
48,8
85,4
66,1
125,8
Batteries
105,2
145,5
164,2
200,8
185,6
207,4
275,4
280,6
Body parts / panels
21,7
74,2
72,7
18,9
34,2
140,0
118,6
122,7
Brake parts
28,3
43,5
56,1
62,3
65,6
131,2
152,9
168,5
Car radios
5,4
6,6
7,6
7,9
6,5
23,6
18,7
21,1
57,4
75,6
64,9
72,2
76,1
85,8
88,2
94,9
17,1
25,3
24,0
33,2
32,0
66,9
79,7
90,9
Engines
79,6
161,6
178,2
225,6
325,8
229,7
306,8
435,6
Engine parts
152,8
277,2
277,9
394,5
410,7
528,8
657,8
726,5
Filters
101,4
144,5
137,0
168,4
155,7
190,0
260,3
250,0
Gaskets
26,7
48,1
70,2
73,8
79,2
97,8
105,2
122,5
112,5
159,4
181,9
228,1
279,7
250,0
320,6
400,8
Gear boxes
18,6
28,2
38,0
24,3
31,7
71,1
81,1
74,9
Automotive glass
9,6
10,4
11,9
14,3
13,6
50,8
60,6
69,8
55,7
67,0
56,5
93,8
82,2
128,2
180,8
192,7
Jacks
11,1
12,6
19,5
26,3
18,7
22,4
30,9
23,6
Lighting equipment
20,6
26,0
35,6
35,9
40,3
46,8
63,2
82,1
Radiators / parts
18,8
27,9
25,8
22,9
24,9
54,7
56,1
69,6
Road wheels / parts
20,3
66,2
65,8
28,8
32,0
107,8
67,2
77,6
Seats
1,9
3,2
3,6
8,2
6,2
9,0
15,4
15,9
Seat belts
1,4
1,2
1,4
2,1
2,4
3,9
4,6
5,5
1,4
2,2
4,2
5,7
4,1
10,5
15,4
53,9
30,8
31,4
31,5
36,0
43,9
56,2
62,7
77,4
3,9
7,5
5,3
6,0
4,6
15,1
14,2
13,7
Springs
4,5
4,4
8,9
6,0
7,2
15,6
12,6
13,0
5,3
9,2
7,8
9,3
9,0
15,8
21,4
21,8
Transmission shafts
153,2
198,5
243,1
360,7
342,4
368,8
507,7
495,5
Tyres
450,5
596,2
555,0
750,4
603,6
1 182,3
1 424,9
1 296,0
2,3
10,8
11,6
16,0
20,7
32,6
157,8
138,6
Other parts
1 438,6
2 093,6
2 386,8
2 808,2
2 705,6
4 865,8
5 807,0
5 774,5
Light vehicles
2 130,0
3 724,1
3 440,0
3 129,0
3 354,6
9 799,2
10 750,3
11 958,5
734,3
1 157,5
1 128,5
1 628,9
1 533,4
2 655,7
3 609,3
3 578,3
Wiring harnesses
Source: AIEC, SARS
* Comparison excluding BLNS (Botswana, Lesotho, Namibia and Swaziland) country exports
** Comparison including BLNS (Botswana, Lesotho, Namibia and Swaziland) country exports
43
EXPORTS
Top export destinations in SADC
44
EXPORTS
Mercosur (Mercado Común del Sur Common Market of South America)
Mercosur was created by Argentina, Brazil, Paraguay and Uruguay in 2001, with Mexico and Venezuela
recently being accepted to join Bolivia and Chile as associate members. Trade with Mercosur remains
relatively small in the context of South Africa’s overall trade regime, although Brazil was one of the 30
countries to which South African automotive exports more than doubled on a year-on-year basis, mainly
due to increased vehicle exports from 2 348 units in 2014 to 6 443 units in 2015 to the country.
A preferential trade agreement (PTA) between SACU and Mercosur was signed in December 2004. The
aim of the agreement was to strengthen existing relations, promote the expansion of trade, and establish
the conditions for the creation of a free trade agreement between Mercosur and SACU. The previously
concluded “Framework Agreement for the Creation of a Free Trade Area between Mercosur and the
Republic of South Africa” provides for actions aimed at increasing trade, including the mutual granting of
tariff preferences. The understanding also makes provision for, amongst others, additional protocols on the
automotive sector and customs cooperation, as well as further negotiations to broaden and deepen the
Agreement, including further exchanges of trade preferences. Discussions are continuing on issues such as
the rules of origin, sanitary and phyto-sanitary regulations, customs procedures and additional products.
Future negotiations may involve the granting and winning of tariff concessions in respect of automotive
products.
In October 2012, the Brazilian government approved by decree a new programme, Inovar-Auto, to
encourage vehicle technology innovation. Inovar-Auto fosters industrial competitiveness by encouraging
OEMs to produce more efficient, safer, and technologically-advanced vehicles, while promoting the
national automotive industry. Inovar-Auto is both a carrot and a stick, with the twin goals of pushing OEMs
to manufacture vehicles in Brazil and luring consumers to buy more fuel-efficient vehicles. The programme
has introduced large increases in taxation on all cars, especially imports, although manufacturers
conforming to a lengthy set of regulations can ensure that their products avoid the charges. Inovar-Auto
added a 30% tax to industrial products, except those built in Mexico or the Mercosur countries. Moreover,
the increase was in addition to a 30% import duty applicable on vehicles. The 30% tax increase can be
negated if a manufacturer complies with a series of targets, each of which earns tax credits. The effect of
the programme has been to push OEMs into manufacturing locally. Inovar-Auto has been running since
the start of 2013 and is valid until 2017. The tax increase will mostly be felt by those automotive component
manufacturers and OEMs without plants in Brazil, or those that only assemble vehicles in the country with
a high level of imported parts.
In 2015 Brazil was ranked ninth in the world in terms of global vehicle production. The country dropped two
places in the global rankings as production volumes decreased by 22,8% from 3,15 million units produced
in 2014 to 2,43 million units produced in 2015 due to the recessionary economic climate in the country.
Vehicle production in Argentina also declined by 13,5% from the 617 329 units produced in 2014 to 533
683 units produced in 2015.
The following table reveals that total automotive exports (vehicles and components) to Mercosur consisted
of a limited range of products and comprised only R3,48 billion or 2,3% of South Africa’s total automotive
exports of R151,5 billion in 2015. Of the total automotive exports to the region in 2015, the bulk was
destined for Brazil, accounting for R2,43 billion, and Argentina, accounting for R990,8 million of exports.
45
EXPORTS
Exports to Mercosur by product category – 2011 to 2015
Component
2011
2012
2013
2014
2015
TOTAL (R million)
998,8
1 503,2
2 047,0
2 270,6
3 481,7
Air conditioners
-
0,1
0,1
0,1
-
Alarm systems
3,9
3,8
2,1
0,5
0,1
Automotive tooling
6,3
52,7
41,6
44,7
9,5
Axles
0,3
0,2
0,2
1,5
14,7
Batteries
-
-
-
0,2
0,6
Body parts / panels
-
0,9
0,8
5,0
0,5
Brake parts
-
1,0
0,5
0,1
0,4
Car radios
-
-
-
0,9
-
9,6
129,7
228,1
243,4
174,6
2,1
2,6
3,4
5,7
4,0
Engines
532,7
248,9
2,7
0,5
-
Engine parts
57,6
216,8
279,6
215,2
232,8
Filters
3,1
2,7
3,8
2,2
1,7
Gaskets
1,3
0,3
1,0
0,5
0,9
1,7
3,8
2,5
3,3
7,8
-
0,1
0,6
0,1
-
1,4
0,2
0,4
0,9
1,2
-
0,1
0,3
0,1
0,1
Jacks
0,7
0,1
-
-
-
Lighting equipment
4,3
2,6
0,2
0,2
0,3
Radiators / parts
52,0
52,7
0,7
0,1
17,4
-
56,3
207,9
152,1
92,7
0,1
0,9
0,1
2,1
3,4
0,2
-
-
0,1
-
0,2
0,2
Gear boxes
Automotive glass
Road wheels / parts
Seat belts
Seats
-
-
0,1
-
0,2
-
12,5
12,7
20,4
27,1
14,8
5,0
0,8
8,7
0,1
-
3,9
-
0,2
-
Springs
Transmission shafts
36,8
71,0
81,7
67,6
68,8
Tyres
221,7
114,8
90,2
14,0
0,6
Wiring harnesses
1,8
1,0
2,0
1,3
0,4
Other parts
40,7
475,1
1 012,0
540,3
399 2
Light vehicles
1,8
47,1
54,5
939,3
2 427,7
1,4
-
0,9
0,9
7,2
Source: AIEC, SARS
46
EXPORTS
Top export destinations in Mercosur
47
EXPORTS
EXPORTS OF VEHICLES
Vehicle exports play a key role in the industry’s strategy going forward under the APDP, with its vision to
double vehicle production in the country to around one million vehicles per annum by 2020. The majority
of vehicles manufactured in South Africa is exported and in 2015 vehicle exports accounted for 54,2% of
total vehicle production, the highest export level recorded to date. Passenger car exports comprised 229
691 units or 68,8%, light commercial vehicles 102 987 units or 30,9% and medium and heavy commercial
vehicles and buses 1 124 units or 0,3 % of the record total of 333 802 units exported in 2015. South African
manufactured left- and right-hand drive passenger cars and light commercial vehicles were exported to 85
destinations in 2015. The efficiencies required to successfully achieve the level of export penetration into
the growing number of export markets have had significant benefits for South African consumers with the
affordability of new vehicles having improved significantly over the past decade.
The production of light vehicle models in South Africa has been rationalised significantly under the
automotive policy regimes, resulting in a reduction from 42 platforms, 20 years ago to 13 platforms at
present. This has contributed to substantially higher volumes per model produced, generating economies
of scale benefits. Consequently, the complexity in the component sector has been reduced, although the
number of added derivatives for export markets has partially negated the benefits. During 2015, five models
achieved production volumes in excess of 40 000 units, of which one model achieved a production volume
in excess of 100 000 units. A key challenge that remains in the industry is to raise localisation which would
result in benefits such as improved supplier efficiencies, logistics costs savings, avoiding currency volatility,
domestic job creation, skills development, and technology transfers. Importantly, the domestically-based
OEMs perceive increasing local sourcing and local value addition levels in South African manufactured
vehicles as a prerequisite for establishing a more sustainable vehicle production base.
The following table reveals that the UK, followed by the US, Australia and Japan were South Africa’s
top destinations for light vehicle exports in 2015. Mercedes-Benz, with its new C-Class model, was the
pace-setter in terms of exported vehicles in 2015. Exports to the EU reflected a significant improvement,
increasing by a substantial 57 719 units or 49,7% from 116 077 units in 2014 to 173 796 units in 2015, thus
exceeding the 100 000 mark for the second successive year. The decline of vehicle exports into Africa could
be attributed to the substantial decline in export volumes to the domestic industry’s top destinations in
Africa over recent years, namely Algeria and Nigeria, due to new vehicle import regulatory changes, as well
as the downturn in the economies of many African countries relating to falling oil and commodity prices.
The majority of vehicles
manufactured in South Africa is
exported and in 2015 vehicle exports
accounted for 54,2% of total vehicle
production, the highest export level
recorded to date.
48
EXPORTS
Top 10 destinations and regions for light vehicles (passenger cars and light
commercial vehicles) exported – 2011 to 2015
Country
2011
2012
2013
2014
2015
Total (R billion)
42,3
48,7
57,7
66,3
98,0
Ranking of exporters
Number 1 to Number 5
Toyota
VW
BMW
MBSA
Nissan
Toyota
VW
MBSA
BMW
Ford
Toyota
BMW
VW
MBSA
Ford
Toyota
BMW
VW
Ford
MBSA
MBSA
VW
BMW
Toyota
Ford
UK
43 688
41 111
40 763
57 739
101 704
USA
68 948
66 219
63 457
42 230
48 669
Australia
8 612
14 325
14 975
28 346
29 846
Japan
22 475
17 226
24 869
25 097
15 828
France
13 549
11 558
11 461
11 175
14 824
Russia
1 455
6 082
5 158
6 587
9 301
Germany
8 362
7 060
5 121
6 738
8 695
Algeria
24 191
24 281
29 917
15 356
7 886
Brazil
-
-
-
2 348
6 443
Kenya
2 825
3 044
3 504
3 120
4 533
Other
77 549
86 010
75 973
76 786
84 949
EU
98 044
87 620
79 811
116 077
173 796
NAFTA
68 948
66 219
63 457
48 408
53 804
AFRICA
67 442
79 228
77 589
60 189
41 446
271 654
276 916
275 198
275 522
332 678
Total (units)
Source: NAAMSA/Lightstone Auto, SARS
49
EXPORTS
Exports of medium and heavy commercial vehicles and buses, in relation to passenger cars and light
commercial vehicles, have been relatively insignificant in terms of volumes, although the thousand unit
export level was exceeded for the fourth year in a row and this trend is set to continue. The main export
destinations for trucks and buses have consistently been South Africa’s neighbouring countries in the SADC
region.
Top destinations and regions for medium, heavy commercial vehicles and
buses exported – 2011 to 2015
Country
2011
2012
2013
2014
2015
1,0
1,3
2,8
3,7
3,9
UD Trucks
MAN
Scania
Powerstar
Iveco
UD Trucks
Scania
MAN
Iveco
VW
MAN
Scania
UD Trucks
Iveco
GM/Isuzu Trucks
MAN
Scania
Iveco
UD Trucks
GM/Isuzu Trucks
MAN
Volvo Group
Scania
GMSA/Isuzu Trucks
Iveco
Zimbabwe
316
246
262
315
282
Kenya
105
127
175
191
219
Mozambique
60
145
168
153
213
Tanzania
59
109
214
159
143
Zambia
91
303
174
392
126
Malawi
129
105
107
42
64
Uganda
-
-
-
8
42
Angola
23
25
94
130
20
Mauritius
-
2
1
7
7
Saudi Arabia
-
-
-
-
4
Other
20
14
3
7
4
EU
-
-
8
10
-
AFRICA
803
1 063
1 198
1 404
1 116
Total (units)
803
1 076
1 206
1 414
1 124
Total (R billion)
Ranking of exporters
Number 1 to Number 5
50
EXPORTS
AUTOMOTIVE COMPONENTS –
EXPORTS BY COUNTRY
The automotive component sector in South Africa consists of multiple sub-sectors, each with different cost
drivers, supply chain challenges and key market requirements. In order to penetrate the export market
successfully, domestic component suppliers need to be internationally competitive. The first-tier automotive
component suppliers in South Africa comprise around 75% foreign-owned multi-national corporations
while the domestic companies are represented mostly within the second- and third-tier levels that supply
the sub-components to first-tier suppliers which in turn supply to OEMs. The lower-tier national component
suppliers are typically smaller companies needing greater assistance from government to become a
sustainable and internationally competitive part of the supply chain. Multiple areas of collaboration exist
between South African component manufacturers and outside partners for market access, technology
transfer, process know-how, joint production or strategic alliance, amongst others.
Contributing factors that supported automotive component exports in 2015 included a weakening rand
exchange rate, in particular against the US dollar, year-on-year vehicle production gains in the industry’s
top export destinations, the domestic component suppliers’ production flexibility advantages, as well
as South Africa’s trade arrangements with the EU, SADC and the US. The following table reveals that the
main destinations for automotive component exports remain first-world markets, although emerging
markets are starting to feature as important export destinations, indicating progress in the South African
component manufacturers’ ability to compete globally. In this regard, significant increases in component
exports to Thailand, India and Taiwan are a case in point.
Multiple areas of
collaboration exist between
South African component
manufacturers and outside
partners for market access,
technology transfer, process
know-how, joint production
or strategic alliance,
amongst others.
51
EXPORTS
Automotive component export value and ranking by country – 2014 vs 2015
Country
2014
R million
2014
Ranking
2015
R million
2015
Ranking
Germany
12 486,9
1
13 681,9
1
USA
4 721,0
2
6 518,9
2
Namibia
2 660,9
4
2 790,7
3
UK
2 862,5
3
2 624,1
4
Spain
1 979,6
5
2 226,7
5
Botswana
1 894,5
6
2 017,9
6
Thailand
1 020,5
11
1 638,3
7
India
560,3
18
1 413,5
8
Mozambique
1 611,2
7
1 402,5
9
Zambia
1 526,0
8
1 373,3
10
Zimbabwe
985,8
12
1 084,7
11
922,8
13
1 018,0
12
Argentina
1 054,9
10
902,8
13
Japan
309,7
25
813,9
14
Czech Republic
807,4
15
782,4
15
505,6
19
565,5
16
Swaziland
561,2
17
552,0
17
Belgium
1 064,6
9
518,6
18
Turkey
415,3
21
488,2
19
Lesotho
347,1
24
487,5
20
Netherlands
916,0
14
483,3
21
Hungary
367,7
22
480,8
22
Angola
465,5
20
450,6
23
Ghana
164,2
36
443,0
24
Canada
273,8
28
326,7
25
Poland
735,1
16
319,5
26
Australia
301,0
27
312,0
27
France
361,0
23
285,5
28
Tanzania
230,9
30
263,7
29
United Arab Emirates
175,1
35
249,8
30
Mexico
224,3
32
226,9
31
China
303,2
26
204,6
32
Kenya
207,0
34
198,7
33
Malawi
225,1
31
195,8
34
Taiwan
14,4
-
192,5
35
Nigeria
210,8
33
174,0
36
Saudi Arabia
39,5
-
142,9
37
Brazil
232,2
29
127,9
38
Source: AIEC, SARS
52
EXPORTS
The following tables reveal the automotive component export details for the 38 export destinations
recording an export value above R100 million or 0,2% of the total automotive component export value of
R49,64 billion in 2015.
(1)
Country
Germany R13 681,9 million
1
R8 931,8
2
Engine parts
R974,4
3
Stitched leather seats /
parts
R581,2
4
Radiators / parts
R430,4
5
Shock absorbers /
suspension parts
R322,0
6
Tyres
R270,5
7
R202,0
8
Axles
R190,8
9
Filters
R131,0
10
Transmission shafts /
cranks
R120,1
(2)
Country
USA R6 518,9 million
1
R4 063,0
2
Engine parts
R922,5
3
Radiators / parts
R227,9
4
R177,5
5
Tyres
R133,5
6
Automotive tooling
R116,7
7
Axles
R80,8
8
Gear boxes
R59,4
9
Shock absorbers /
suspension parts
R57,6
10
Gauges / instruments /
parts
R52,2
(3)
Country
Namibia R2 790,7 million
1
Tyres
R261,9
2
Engine parts
R152,5
3
Automotive tooling
R105,5
4
parts
R79,2
5
Batteries
R54,0
6
cranks
R47,8
7
Ignition / starting
equipment
R43,1
8
Body parts / panels
R39,7
9
Engines
R37,3
10
Filters
R36,9
(4)
Country
United Kingdom (UK) R2 624,1 million
1
R1 787,6
2
parts
R120,9
3
Automotive glass
R87,9
4
Engine parts
R81,3
5
Batteries
R65,6
6
Automotive tooling
R42,7
7
Air conditioners
R36,8
8
parts
R34,6
9
Gaskets
R17,1
10
R15,4
53
EXPORTS
(5)
Country
Spain R2 226,7 million
1
R1 774,4
2
Radiators / parts
R127,9
3
Road wheels / parts
R54,9
4
Tyres
R51,3
5
Automotive tooling
R37,2
6
Automotive glass
R30,2
7
R21,6
8
Lighting equipment /
parts
R5,7
9
parts
R1,8
10
parts
R1,6
(6)
Country
Botswana R2 017,9 million
1
Tyres
R269,5
2
Engine parts
R124,0
3
Wiring harnesses
R112,7
4
cranks
R78,3
5
Engines
R64,6
6
Axles
R64,5
7
Ignition / starting
equipment
R49,6
8
Filters
R41,6
9
Brake parts
R39,2
10
Batteries
R33,2
(7)
Country
Thailand R1 638,3 million
1
Engine parts
R819,6
2
R407,4
3
cranks
R132,4
4
Road wheels / parts
R16,0
5
Tyres
R5,0
6
parts
R4,3
7
Radiators / parts
R3,5
8
Brake parts
R3,5
9
Ignition / starting
equipment
R2,8
10
Shock absorbers /
suspension parts
R1,6
(8)
Country
India R1 413,5 million
1
Engines
R871,3
2
R259,0
3
Road wheels / parts
R107,5
4
Body parts / panels
R73,5
5
Automotive tooling
R30,1
6
Radiators / parts
R17,9
7
12,7
8
cranks
R4,7
9
Tyres
R4,6
10
Engine parts
R0,5
(9)
Country
Mozambique R1 402,5 million
1
Engines
R106,2
2
Tyres
R103,9
3
Batteries
R81,4
4
cranks
R72,0
5
Engine parts
R70,0
6
Automotive tooling
R55,8
7
parts
R43,2
8
Ignition / starting
equipment
R23,1
9
Axles
R22,4
10
Filters
R21,4
54
EXPORTS
(10)
Country
Zambia R1 373,3 million
1
Tyres
R144,3
2
Engines
R126,1
3
Engine parts
R107,6
4
cranks
R67,9
5
parts
R54,6
6
Batteries
R46,8
7
Automotive tooling
R44,0
8
Filters
R40,5
9
Ignition / starting
equipment
R17,9
10
Brake parts
R16,3
(11)
Country
Zimbabwe R1 084,7 million
1
Tyres
R150,9
2
Filters
R69,7
3
Engine parts
R63,1
4
cranks
R55,9
5
Batteries
R32,8
6
parts
R29,2
7
Shock absorbers /
suspension parts
R22,9
8
Ignition / starting
equipment
R22,4
9
Automotive tooling
R20,8
10
Brake parts
R20,6
(12)
Country
Democratic Republic of Congo (DRC) R1 018,0 million
1
cranks
R111,7
2
parts
R92,3
3
Engine parts
R80,4
4
Engines
R44,5
5
Automotive tooling
R41,7
6
Gaskets
R23,8
7
R22,0
8
Tyres
R12,8
9
Axles
R12,7
10
Ignition / starting
equipment
R10,9
(13)
Country
Argentina R902,8 million
1
Engine parts
R231,1
2
R174,5
3
Road wheels / parts
R79,7
4
cranks
R44,6
5
R4,6
6
Automotive tooling
R1,6
7
Gaskets
R0,3
8
Axles
R0,3
9
parts
R0,2
10
parts
R0,1
(14)
Country
Japan R813,9 million
1
R112,7
2
Tyres
R5,3
3
parts
R5,0
4
Springs
R4,4
5
Engine parts
R3,8
6
R3,6
7
Brake parts
R2,6
8
Automotive tooling
R2,6
9
R1,6
10
Wiring harnesses
R0,4
55
EXPORTS
(15)
Country
Czech Republic R782,4 million
1
R689,6
2
R43,3
3
Automotive tooling
R15,7
4
Radiators / parts
R2,8
5
parts
R0,2
6
Alarm systems
R0,1
7
parts
R0,1
-
-
-
(16)
Country
Korea Republic South R565,5 million
1
R504,7
2
R40,8
3
Radiators / parts
R5,3
4
Engine parts
R1,3
5
Automotive tooling
R1,1
6
Tyres
R0,5
7
parts
R0,1
-
-
-
(17)
Country
Swaziland R552,0 million
1
Tyres
R133,0
2
Engine parts
R26,3
3
Brake parts
R22,5
4
cranks
R16,5
5
Ignition / starting
equipment
R14,0
6
Body parts / panels
R13,1
7
R11,9
8
Filters
R11,1
9
parts
R8,3
10
Automotive tooling
R7,6
(18)
Country
Belgium R518,6 million
1
Radiators / parts
R97,1
2
Automotive glass
R77,6
3
cranks
R48,9
4
Automotive tooling
R40,7
5
Engine parts
R32,5
6
Tyres
R26,9
7
Brake parts
R23,7
8
Filters
R20,3
9
R13,7
10
Body parts / panels
R13,2
(19)
Country
Turkey R488,2 million
1
R412,4
2
Radiators / parts
R38,9
3
R15,4
4
cranks
R3,3
5
Automotive tooling
R3,3
6
Engine parts
R3,1
7
Engines
R2,9
8
R1,2
9
Gaskets
R0,9
10
Springs
R0,4
56
EXPORTS
(20)
Country
Lesotho R487,5 million
1
parts
R39,5
2
Tyres
R28,1
3
Engine parts
R13,0
4
Brake parts
R11,6
5
cranks
R10,4
6
Batteries
R7,4
7
Automotive tooling
R6,1
8
Body parts / panels
R4,9
9
Filters
R4,6
10
Engines
R4,4
(21)
Country
Netherlands R483,3 million
1
R326,3
2
Tyres
R54,2
3
Radiators / parts
R19,4
4
Ignition / starting
equipment
R8,2
5
cranks
R6,7
6
Engine parts
R5,2
7
Automotive tooling
R3,5
8
parts
R2,8
9
Engines
R2,8
10
Alarm systems
R2,4
4
Filters
R0,3
5
parts
R0,2
(22)
Country
Hungary R480,8 million
1
R293,3
2
parts
R14,2
(23)
Country
3
Wiring harnesses
R5,9
Angola R450,6 million
1
Tyres
R121,0
2
Engine parts
R49,3
3
parts
R34,6
4
cranks
R14,8
5
Automotive tooling
R13,5
6
Filters
R10,8
7
Engines
R4,2
8
Brake parts
R4,2
9
R3,8
10
Batteries
R3,6
(24)
Country
Ghana R443,0 million
1
Automotive tooling
R275,6
2
parts
R20,2
3
Tyres
R18,1
4
cranks
R14,4
5
Engine parts
R6,6
6
Ignition / starting
equipment
R6,3
7
Filters
R5,4
8
Alarm systems
R3,0
9
R2,7
10
Brake parts
R2,0
57
EXPORTS
(25)
Country
Canada R326,7 million
1
R258,5
2
Air conditioners
R3,8
3
Steering wheels /
columns / boxes
R2,7
4
parts
R2,7
5
Wiring harnesses
R2,4
6
Engine parts
R1,4
7
Brake parts
R1,3
8
cranks
R0,9
9
Automotive tooling
R0,9
10
parts
R0,8
(26)
Country
Poland R319,5 million
1
parts
R140,7
2
R19,9
3
Automotive tooling
R18,0
4
Automotive glass
R12,0
5
Wiring harnesses
R4,9
6
R4,0
7
parts
R1,7
8
Filters
R0,5
9
Ignition / starting
equipment
R0,5
10
Axles
R0,1
(27)
Country
Australia R312,0 million
1
R39,0
2
parts
R28,2
3
Automotive tooling
R19,9
4
cranks
R7,9
5
R7,3
6
Radiators / parts
R5,0
7
Filters
R4,9
8
Springs
R4,5
9
Engine parts
R3,8
10
Brake parts
R3,7
(28)
Country
France R285,5 million
1
R53,5
2
R44,4
3
Automotive glass
R33,7
4
parts
R18,1
5
Filters
R13,5
6
Automotive tooling
R13,4
7
Engine parts
R11,2
8
parts
R6,5
9
Gaskets
R3,5
10
Radiators / parts
R3,3
(29)
Country
Tanzania R263,7 million
1
Tyres
R31,2
2
Engine parts
R23,9
3
Engines
R21,0
4
Body parts / panels
R13,4
5
parts
R13,0
6
cranks
R10,6
7
Automotive tooling
R9,9
8
R6,1
9
Batteries
R3,8
10
Alarm systems
R3,7
58
EXPORTS
(30)
Country
United Arab Emirates (UAE) R249,8 million
1
Tyres
R109,6
2
parts
R15,2
3
R13,6
4
Ignition / starting
equipment
R12,8
5
Engine parts
R11,9
6
Automotive tooling
R8,3
7
Wiring harnesses
R5,0
8
Automotive glass
R3,6
9
Brake parts
R2,6
10
R2,4
(31)
Country
Mexico R226,9 million
1
Radiators / parts
R72,1
2
R33,8
3
Automotive tooling
R23,4
4
R12,1
5
Engines
R4,4
6
Tyres
R2,2
7
cranks
R1,6
8
R1,4
9
Road wheels / parts
R0,2
10
Springs
R0,1
(32)
Country
China R204,6 million
1
Radiators / parts
R39,5
2
R25,3
3
R22,5
4
Engine parts
R20,2
5
Shock absorbers /
suspension parts
R16,4
6
Engines
R6,7
7
Air conditioners
R5,0
8
cranks
R3,5
9
R3,3
10
Automotive tooling
R2,4
(33)
Country
Kenya R198,7 million
1
Tyres
R62,0
2
Engine parts
R16,3
3
Automotive tooling
R15,0
4
parts
R6,7
5
cranks
R5,9
6
Filters
R3,9
7
Alarm systems
R3,3
8
Brake parts
R3,2
9
parts
R2,2
10
Ignition / starting
equipment
R2,0
(34)
Country
Malawi R195,8 million
1
Tyres
R34,1
2
Engine parts
R8,5
3
Batteries
R8,3
4
Brake parts
R4,7
5
cranks
R4,6
6
Filters
R4,5
7
Engines
R3,0
8
Alarm systems
R2,9
9
Ignition / starting
equipment
R2,8
10
Body parts / panels
R2,5
59
EXPORTS
(35)
Country
Taiwan R192,5 million
1
Automotive tooling
R163,3
2
R25,3
3
Automotive glass
R0,7
4
R0,7
5
parts
R0,3
6
Engine parts
R0,2
-
-
-
-
(36)
Country
Nigeria R174,0 million
1
Automotive tooling
R25,1
2
R12,8
3
parts
R11,9
4
Tyres
R11,6
5
Engine parts
R11,1
6
Filters
R3,5
7
Air conditioners
R2,8
8
Alarm systems
R2,4
9
cranks
R2,1
10
Gaskets
R1,7
3
parts
R4,6
4
Engine parts
R1,0
5
cranks
R0,7
-
-
-
(37)
Country
Saudi Arabia R142,9 million
1
Automotive tooling
R111,8
2
Tyres
R4,9
6
Filters
R0,8
7
Body parts / panels
R0,7
(38)
Country
Brazil R127,9 million
1
cranks
R18,4
2
Radiators / parts
R17,3
3
Axles
R14,4
4
Road wheels / parts
R12,8
5
R10,2
6
parts
R7,5
7
Automotive tooling
R7,0
8
R4,0
9
parts
R3,2
10
Filters
R1,5
60
EXPORTS
AUTOMOTIVE COMPONENTS –
EXPORTS BY PRODUCT
South Africa is strategically located along with other subsidiaries to manufacture certain vehicle models for
the global market, which means a domestically manufactured vehicle is identical to vehicles manufactured
elsewhere. This implies that domestic automotive component suppliers must be able to deliver technology
and quality levels that are on par with those found anywhere else in the world, at comparable cost. A diverse
range of original equipment components and aftermarket parts are manufactured in the country. The bulk
of the domestically manufactured automotive components is sold as original equipment components to
the OEMs or as replacement parts, but automotive components companies are also active in the export
market, selling their products into international OEM supply chains.
Employment creation and high-level skills development are vital in South Africa and since the majority of
the automotive industry employment is generated in the component sector, higher localisation remains
an essential focus. The Dti, through the latest iteration of its Industrial Policy Action Plan (IPAP), highlighted
the development of a specific support framework for black industrialists. In terms of IPAP 2015, the Black
Industrialists Development Programme will be established over the coming year backed by R1 billion
incentive funding from the Dti. It will be aimed at promoting industrialisation, sustainable economic
growth, and transformation through the support of black-owned entities in the mainstream of the South
African manufacturing industry and related manufacturing sectors. Government envisages this as one
of the tools for incentivising supplier development and for facilitating a mutually beneficial relationship
between big and small companies. This is aligned with the APDP’s vision to deepen and broaden the
automotive component supply base in the country.
The following table reveals the automotive component export ranking by product category from 2011
through to 2015. In 2015, automotive component exports, including sales to the BLNS (Botswana, Lesotho,
Namibia and Swaziland) countries, increased by 8,7% to R49,64 billion, from R45,68 billion in 2014. South
Africa remains a strategic supplier of catalytic converters to the world and by value this component category
maintained its dominant export position under the APDP in 2015, as the focus of exporters tend to be on
high-value domestically beneficiated, logistics-friendly automotive components. The significant increase
in the exports of engines relates to the EA111 engine for the VW Polo and Polo Vivo and the Duratorq TDCi
engine for the Ford Ranger, both linked to export programmes, which are manufactured in South Africa,
illustrating the country’s manufacturing capabilities.
South Africa remains a strategic supplier of
catalytic converters to the world and by value this
component category maintained its dominant
export position under the APDP in 2015, as the
focus of exporters tend to be on high-value
domestically beneficiated, logistics-friendly
automotive components.
61
EXPORTS
Automotive component export ranking by product category – 2011 to 2015
% of total
export
value
Ranking
20 326
40,9%
1
3 732
3 941
7,9%
2
1 842
2 206
2 193
4,4%
3
782
777
936
1 459
2,9%
4
819
559
263
364
1 448
2,9%
5
Radiators / parts
1 118
945
1 117
1 172
1 190
2,4%
6
Transmission shafts / cranks
569
771
926
1 102
1 060
2,1%
7
2 190
1 719
1 530
1 286
993
2,0%
8
319
401
435
640
685
1,4%
9
2 139
1 730
1 225
504
535
1,1%
10
430
440
474
518
480
1,0%
11
Road wheels / parts
494
466
455
367
471
0,9%
12
Filters
312
353
407
475
460
0,9%
13
236
225
310
383
430
0,9%
14
Axles
320
252
335
377
421
0,8%
15
Automotive glass
277
230
386
451
389
0,8%
16
Batteries
143
180
280
383
358
0,7%
17
Body parts / panels
140
146
263
269
301
0,6%
18
Wiring harnesses
78
94
118
264
260
0,5%
19
103
109
185
255
257
0,5%
20
Lighting equipment
199
198
248
239
237
0,5%
21
Brake parts
82
97
192
225
230
0,5%
22
Gaskets
69
100
160
176
192
0,4%
23
Gear boxes
69
100
122
153
145
0,3%
24
Alarm systems
61
62
87
125
102
0,2%
25
Air conditioners
36
42
55
94
102
0,2%
26
155
182
210
51
39
0,1%
27
Jacks
92
103
57
39
36
0,1%
28
Springs
43
33
31
35
28
0,1%
29
Seats
6
11
13
21
26
0,1%
30
Car radios
39
47
26
25
24
0,1%
31
Seat belts
28
24
8
7
7
-
32
Other parts
4 447
5 722
8 809
9 315
10 816
21,8%
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
42 534
39 883
42 176
45 682
49 641
19 639
16 347
17 641
19 493
Engine parts
2 058
2 875
3 189
Tyres
1 675
1 522
Automotive tooling
438
Engines
Source: AIEC, SARS
The following tables reveal the top five destinations for the automotive product category exports from
South Africa from 2011 through to 2015.
62
EXPORTS
Catalytic converters (1)
COUNTRY
2011
2012
2013
2014
2015
19 638,9
16 347,0
17 640,9
19 492,7
20 325,7
Germany
39%
40%
41%
42%
44%
USA
8%
11%
12%
15%
20%
UK
10%
8%
9%
9%
9%
Spain
7%
6%
7%
6%
9%
Czech Republic
4%
5%
5%
4%
3%
TOTAL (R million)
Engine parts (2)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
2 058,0
2 875,1
3 188,7
3 732,4
3 941,4
Germany
15%
21%
24%
20%
25%
USA
39%
28%
21%
22%
23%
Thailand
5%
13%
15%
13%
21%
Argentina
1%
4%
6%
5%
6%
Namibia
3%
3%
4%
3%
4%
Tyres (3)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
1 675,2
1 521,5
1 842,1
2 205,8
2 193,0
Germany
26%
12%
10%
12%
12%
Botswana
10%
10%
11%
11%
12%
Namibia
9%
10%
11%
10%
12%
Zimbabwe
8%
11%
8%
8%
7%
Zambia
6%
10%
8%
8%
7%
Automotive tooling (4)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
438,1
782,0
776,8
935,8
1 458,7
Ghana
2%
1%
2%
1%
19%
Taiwan
-
-
-
-
11%
16%
3%
5%
3%
8%
-
3%
3%
2%
8%
1%
7%
9%
14%
7%
USA
Saudi Arabia
Namibia
Engines (5)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
819,0
558,9
262,8
363,7
1 447,9
India
2%
-
1%
-
60%
Zambia
5%
16%
36%
29%
9%
Mozambique
1%
3%
11%
15%
7%
Botswana
5%
7%
11%
15%
4%
Germany
-
-
1%
-
3%
63
EXPORTS
Radiators and parts (6)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
1 117,9
945,2
1 116,7
1 172,1
1 190,2
Germany
21%
47%
24%
12%
36%
USA
17%
19%
15%
17%
19%
Spain
13%
12%
11%
10%
11%
Belgium
-
-
6%
9%
8%
Mexico
1%
2%
3%
4%
6%
Transmission shafts and cranks (7)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
568,8
770,7
925,6
1 102,1
1 060,0
Thailand
3%
9%
10%
8%
12%
Germany
27%
23%
17%
18%
11%
8%
6%
8%
8%
11%
Botswana
12%
9%
8%
7%
7%
Mozambique
4%
4%
5%
8%
7%
Stitched leather seats and parts (8)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
2 189,7
1 718,7
1 530,4
1 285,9
992,7
Germany
88%
74%
68%
59%
59%
Poland
1%
1%
5%
12%
14%
UK
-
-
-
9%
12%
Romania
-
-
-
2%
6%
Lesotho
-
-
-
-
4%
Gauges, instruments and parts (9)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
319,4
401,4
435,1
640,3
685,3
12%
11%
13%
13%
13%
Namibia
5%
5%
8%
7%
12%
Zambia
6%
9%
9%
7%
8%
USA
15%
12%
4%
4%
8%
Mozambique
6%
7%
5%
4%
6%
Silencers and exhausts (10)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
2 138,7
1 729,6
1 225,4
503,8
535,3
USA
8%
14%
15%
32%
33%
Germany
27%
28%
36%
18%
18%
-
1%
1%
4%
8%
1%
2%
2%
5%
8%
-
1%
2%
7%
8%
France
Czech Republic
64
EXPORTS
Shock absorbers and suspension parts (11)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
430,4
439,6
474,1
517,7
480,3
Germany
86%
83%
81%
75%
67%
USA
2%
5%
1%
8%
12%
Zimbabwe
3%
3%
4%
5%
5%
Namibia
2%
2%
3%
2%
4%
China
3%
4%
5%
4%
3%
Road wheels and parts (12)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
494,2
466,0
454,8
367,1
471,1
India
-
1%
-
7%
23%
Argentina
-
7%
16%
22%
17%
Germany
52%
29%
13%
14%
13%
Spain
12%
8%
9%
6%
12%
USA
2%
1%
1%
5%
10%
Filters (13)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
312,2
353,0
407,4
474,8
460,1
Germany
38%
27%
29%
25%
28%
Zimbabwe
14%
18%
15%
16%
15%
Botswana
6%
4%
5%
8%
9%
Zambia
6%
8%
7%
8%
9%
Namibia
3%
2%
6%
8%
8%
Clutches and shaft couplings (14)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
235,9
224,8
309,5
382,8
429,8
Germany
56%
56%
49%
46%
47%
Namibia
3%
5%
5%
5%
6%
USA
4%
6%
6%
7%
5%
China
1%
2%
3%
4%
5%
Botswana
9%
6%
4%
4%
5%
Axles (15)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
319,6
251,7
334,8
377,3
421,0
Germany
37%
35%
53%
36%
45%
USA
37%
32%
12%
33%
19%
Botswana
2%
4%
6%
5%
15%
Mozambique
-
1%
9%
7%
5%
Brazil
-
-
-
-
3%
65
EXPORTS
Automotive glass (16)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
277,3
230,4
386,4
450,6
389,0
UK
24%
29%
27%
24%
23%
Belgium
30%
27%
28%
19%
20%
Germany
17%
7%
13%
12%
11%
France
10%
13%
14%
14%
9%
Namibia
4%
6%
5%
6%
8%
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
143,2
180,0
280,0
383,4
357,9
Mozambique
41%
38%
30%
25%
23%
UK
19%
11%
20%
25%
18%
Namibia
1%
2%
1%
8%
15%
Zambia
20%
21%
15%
13%
13%
Botswana
10%
6%
11%
9%
9%
Batteries (17)
Body parts and panels (18)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
139,6
145,8
263,1
269,4
301,3
India
46%
20%
30%
25%
24%
Germany
11%
8%
6%
14%
24%
Namibia
8%
10%
10%
16%
13%
Botswana
14%
12%
7%
12%
10%
Tanzania
1%
2%
-
-
4%
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
77,6
94,0
118,2
264,4
260,2
Botswana
4%
10%
14%
52%
43%
Germany
21%
14%
11%
9%
28%
USA
2%
5%
1%
2%
3%
Malaysia
-
-
-
-
3%
-
3%
3%
2%
3%
Wiring harnesses (19)
Ignition and starting equipment (20)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
102,8
108,8
184,9
255,2
256,6
Botswana
11%
9%
16%
16%
19%
Namibia
10%
13%
15%
12%
17%
Mozambique
10%
9%
6%
7%
9%
Zimbabwe
14%
17%
9%
8%
9%
Zambia
18%
13%
5%
11%
7%
66
EXPORTS
Lighting, signalling and wiping equipment (21)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
199,3
198,4
248,1
239,0
236,9
Germany
60%
53%
50%
45%
35%
Namibia
1%
2%
1%
6%
11%
-
-
1%
7%
8%
Botswana
3%
2%
2%
4%
5%
UK
2%
10%
6%
5%
5%
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
82,4
97,3
192,0
225,2
229,7
Botswana
19%
22%
17%
14%
17%
Namibia
8%
9%
11%
12%
13%
Belgium
30%
18%
10%
10%
10%
Swaziland
12%
10%
9%
10%
10%
Zambia
6%
8%
10%
8%
9%
France
Brake parts (22)
Gaskets (23)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
69,3
100,2
160,2
176,1
192,0
8%
11%
17%
16%
12%
Mozambique
5%
6%
8%
7%
11%
Namibia
6%
8%
7%
7%
11%
UK
12%
8%
6%
9%
9%
Botswana
14%
7%
6%
6%
6%
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
68,8
99,9
121,9
153,4
144,8
USA
44%
41%
25%
32%
41%
Namibia
10%
11%
10%
13%
14%
Botswana
18%
19%
13%
21%
12%
Mozambique
4%
6%
3%
3%
6%
Zimbabwe
5%
5%
3%
2%
6%
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
60,7
61,5
86,9
124,5
102,3
Namibia
9%
8%
6%
11%
15%
Botswana
10%
9%
9%
13%
11%
Mozambique
4%
3%
4%
7%
8%
Austria
4%
7%
4%
5%
6%
Zimbabwe
7%
10%
4%
4%
5%
Gear boxes (24)
Alarm systems (25)
67
EXPORTS
Air conditioners (26)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
35,7
42,2
55,4
94,2
102,2
UK
49%
41%
39%
32%
36%
Namibia
10%
10%
6%
7%
9%
Singapore
-
-
-
11%
8%
Botswana
11%
19%
11%
7%
5%
Zambia
5%
9%
7%
4%
5%
Steering wheels, columns and boxes (27)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
154,8
181,8
210,1
50,5
38,9
Belgium
3%
4%
12%
12%
17%
Namibia
1%
-
1%
10%
14%
Botswana
2%
-
1%
6%
10%
Zimbabwe
1%
2%
1%
8%
8%
-
1%
-
1%
7%
Canada
Jacks (28)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
92,3
103,3
57,2
39,1
35,5
Zimbabwe
3%
4%
10%
18%
19%
Mozambique
1%
1%
4%
5%
12%
Zambia
5%
4%
9%
22%
12%
Italy
-
-
-
-
10%
Algeria
-
-
-
-
7%
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
43,2
32,9
31,1
35,2
27,6
Australia
7%
3%
-
3%
16%
Japan
8%
8%
14%
13%
16%
-
4%
7%
7%
8%
Zambia
2%
4%
10%
5%
8%
Namibia
6%
8%
13%
8%
8%
2011
2012
2013
2014
2015
Springs (29)
Botswana
Seats (30)
COUNTRY
TOTAL (R million)
5,7
11,4
13,2
21,3
25,6
Botswana
20%
24%
25%
20%
17%
Namibia
12%
12%
12%
9%
13%
Mozambique
7%
9%
9%
18%
10%
Singapore
15%
10%
11%
9%
9%
Zambia
9%
10%
11%
10%
7%
68
EXPORTS
Car radios (31)
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
39,2
46,7
25,9
25,4
23,5
Namibia
16%
13%
29%
21%
28%
Botswana
13%
8%
19%
13%
23%
Zambia
3%
3%
5%
16%
12%
Lesotho
5%
7%
8%
2%
7%
1%
1%
5%
1%
6%
COUNTRY
2011
2012
2013
2014
2015
TOTAL (R million)
27,6
24,1
7,7
6,8
6,8
Namibia
3%
3%
13%
14%
28%
-
1%
4%
6%
12%
Botswana
3%
4%
15%
15%
10%
Mozambique
2%
1%
5%
8%
7%
Zambia
1%
2%
4%
8%
7%
Seat belts (32)
69
EXPORTS
IMPORTS BY COUNTRY OF ORIGIN
Imports of automotive products into South Africa remain a function of the success of the APDP, domestic
market demand and currency movements. Imports of vehicles and original equipment components, to
accommodate vehicle production, as well as replacement parts for the growing vehicle parc (also defined
as the number of registered vehicles) of 11,71 million vehicles, remain high. Exchange rate weakness
resulted in increases in new vehicle prices rising above the CPI index in 2015. The rand exchange rate,
however, has reacted differently to different countries and this is particularly important with regard to the
exchange rates of the source countries for South African imports.
The countries of origin for vehicles and automotive components imported into South Africa generally
reflect the global linkages with the head offices of parent companies. The notable exception amongst
the top 10 countries of origin in 2015, was China, where most of the imports were for aftermarket parts.
Growing import competition in the domestic market and that of low-cost products sourced from a global
pool were the order of the day.
The following table reveals the import values and rankings for the 52 countries of origin for vehicles and
automotive component imports into South Africa, above the R20 million threshold, for 2014 versus 2015.
Import value and ranking by country of origin – 2014 vs 2015
Country
2014
R million
2014
Ranking
2015
R million
2015
Ranking
Germany
52 962,3
1
65 210,4
1
Japan
23 270,1
2
22 052,6
2
Thailand
12 268,4
3
13 793,7
3
China
10 392,0
5
12 585,9
4
USA
11 817,2
4
11 835,5
5
India
10 104,4
6
10 790,3
6
UK
7 273,5
8
8 001,4
7
7 321,1
7
7 133,8
8
Spain
5 222,3
9
6 010,8
9
Brazil
4 319,3
10
4 725,2
10
Italy
2 914,7
11
3 214,0
11
Sweden
2 901,3
12
2 685,7
12
Czech Republic
2 548,7
13
2 384,3
13
France
2 398,0
14
2 254,0
14
Poland
1 413,9
16
1 898,4
15
Romania
1 135,6
20
1 689,7
16
Turkey
2 048,8
15
1 609,6
17
Slovak Republic
923,0
23
1 522,2
18
Mexico
1 201,8
19
1 503,9
19
Taiwan
1 060,1
21
1 414,8
20
Hungary
867,4
24
1 396,3
21
Argentina
792,5
25
1 320,7
22
Indonesia
1 220,5
18
1 307,9
23
70
IMPORTS
Netherlands
1 324,8
17
1 068,7
24
24 COUNTRIES ABOVE R1 BILLION
Belgium
943,1
22
915,6
25
Portugal
519,0
29
838,1
26
Austria
783,9
26
838,0
27
Philippines
617,3
27
575,4
28
Switzerland
349,4
31
559,1
29
Malaysia
550,3
28
553,6
30
Canada
382,3
30
391,4
31
Australia
318,9
32
291,2
32
Denmark
153,0
34
189,9
33
Luxembourg
134,1
36
177,9
34
Finland
201,8
33
169,2
35
Israel
134,7
35
148,2
36
Slovenia
125,9
37
134,0
37
Morocco
42,4
46
127,7
38
United Arab Emirates
99,3
38
117,2
39
Estonia
20,3
54
77,7
40
Singapore
89,9
39
74,9
41
Hong Kong, China
67,5
40
72,4
42
Tunisia
49,4
44
70,3
43
Vietnam Republic
59,5
41
65,9
44
Zambia
29,9
48
44,8
45
Ireland
46,1
45
43,4
46
Norway
52,2
42
41,5
47
Russia
18,9
-
28,4
48
Latvia
0,7
-
28,0
49
Zimbabwe
50,2
43
26,1
50
Mozambique
6,7
-
24,2
51
Bosnia & Herzegovina
18,7
-
21,2
52
Source: AIEC, SARS
71
IMPORTS
IMPORTS OF VEHICLES
Imports of light vehicles (passenger cars and light commercial vehicles) declined by 5,3% from the 353 047
units in 2014 to 334 338 units in 2015, in line with a slowdown in the domestic market. Light vehicle imports
comprised 56,9% of total light vehicle sales in 2015, down from 57,6% in 2014. In 2015, total new vehicle
imports originated from 29 different countries around the world. The top country of origin in volume terms
for passenger cars and LCVs imported into South Africa in 2015 was India with 91 588 units, accounting for
27,3 % of total light vehicles imported. Almost all of the high-volume entry-level models available in South
Africa are manufactured overseas, mainly in India. Volkswagen’s Polo Vivo and General Motor’s Chevrolet
Spark, which are manufactured in South Africa, are the two exceptions.
The foundation of the South African automotive sector is based on the relationship between imports and
domestic production as governed by the automotive policy regime in South Africa. The previous MIDP
and current APDP encourage domestic OEMs to manufacture high volumes of selected models linked to
export contracts to obtain economies of scale, coupled with low volume models imported to complement
domestic market mixes. Every brand has a benchmark product in just about every segment of the
market. The domestic model mix is thus arranged to provide the most effective marketing combination
of domestically manufactured and imported models to satisfy a consumer-driven market. South African
consumers benefit from access to new models, a wide variety of choice and a highly competitive pricing
environment.
Although the volume leader in respect of imports was India, the value of Indian imports, however, was
nearly half of those imported from Germany, which included the premium brands such as Audi, BMW,
Mercedes-Benz and Porsche. The following table reveals that in value terms, Germany, followed by India,
Japan, South Korea, the US and the UK were the top countries of origin for vehicles imported into South
Africa in 2015.
Top 10 countries of origin for light vehicles (passenger cars and light
commercial vehicles) imported – 2011 to 2015
Country of origin
2011
2012
2013
2014
2015
Total value (R billion)
42,0
47,4
60,6
53,7
59,6
Germany
25%
24%
26%
30%
27%
India
9%
11%
14%
15%
15%
Japan
13%
12%
10%
10%
11%
16%
15%
11%
10%
9%
USA
8%
9%
7%
9%
8%
UK
8%
10%
9%
7%
8%
Spain
2%
2%
5%
4%
6%
Thailand
4%
3%
5%
3%
3%
Argentina
3%
2%
1%
1%
2%
Slovak Republic
1%
1%
1%
1%
1%
Other
11%
11%
11%
10%
10%
312 153
360 723
377 885
353 047
334 338
Number of light vehicle imports
72
IMPORTS
A process of homologation must be carried out before any motor vehicle model is introduced into the
South African market. The South African Bureau of Standards (SABS) homologation is a procedure intended
to ensure that all new vehicle models comply with the relevant South African legislation, standards and
specifications, as well as codes of practice, before use by the public on public roads. This eliminates the risk
of having to withdraw a sub-standard motor vehicle model from the market and reduces the possibility of
resultant legal action against the supplier. A process of homologation is also required for new models of
motor vehicle tyres introduced into the South African market.
Used vehicle imports are subject to import control in South Africa. Strict control measures are applied to
ensure that only a limited number of legal import permits are issued. In terms of current legislation, used
vehicles qualifying for an import permit include those for immigrants, returning South African residents
and nationals, specifically adapted vehicles for persons with physical disabilities, inherited vehicles by
South African citizens/nationals, vintage and collectors’ passenger vehicles, and racing cars. Without a legal
import permit, imported used vehicles cannot be registered on the National Transport Information System
(NaTIS). The system also combats stolen and non-complying vehicle registrations. All vehicle manufacturing
plants in South Africa have been linked on-line to the system to facilitate the collation of data of vehicles
produced. Left-hand drive vehicles are also not allowed into the country. More information in respect of
used vehicle imports and relevant application forms can be accessed at www.itac.gov.za.
In terms of current legislation,
used vehicles qualifying for an
import permit include those for
immigrants, returning South
African residents and nationals,
specifically adapted vehicles
for persons with physical
disabilities, inherited vehicles by
South African citizens/nationals,
vintage and collectors’
passenger vehicles, and racing
cars.
73
IMPORTS
AUTOMOTIVE PARTS AND
COMPONENTS – IMPORTS
Original equipment component imports by the OEMs amounted to R79,6 billion in 2015, up by 13,4%
from the R70,2 billion in 2014. The increase is in line with record vehicle production of 615 658 units in
the country in 2015, coupled with a weakening exchange rate of the rand, mainly against the US dollar. A
significant portion of the value of automotive imports comprises original equipment components, which
are subsequently exported as part of completely built-up vehicles after local value-adding processes.
Capital-intensive-complex components such as engines, gearboxes and interior electronic components
are mainly imported by the OEMs and much of the remainder is sourced in the domestic market. The
development and deepening of the domestic component supplier base under the APDP is an important
focal point as it will reduce the risks associated with exchange rate fluctuations and logistics costs. Higher
volumes relating to the doubling of vehicle production in the country under the APDP by 2020 and various
supplier competitiveness initiatives could improve the viability of further foreign direct investment, export
contracts and localisation efforts in future.
The following table reveals that imports of original equipment components originated mainly from
Germany, Japan and Thailand in 2015.
Top 10 countries of origin for original equipment components imported
(Chapter 98) – 2011 to 2015
Country of origin
2011
2012
2013
2014
2015
Total (R billion)
43,8
51,4
59,0
70,2
79,6
Germany
37%
35%
35%
38%
47%
Japan
24%
25%
22%
20%
15%
Thailand
9%
12%
14%
12%
12%
Brazil
6%
6%
5%
5%
5%
China
1%
2%
3%
3%
4%
USA
4%
3%
3%
3%
2%
Sweden
3%
3%
3%
3%
2%
UK
3%
2%
2%
3%
2%
Spain
3%
2%
2%
2%
2%
India
-
1%
1%
1%
1%
Other
10%
9%
10%
10%
8%
Source: AIEC, SARS
The growing variety of models and ever more complex technologies has led to a larger number of players
and an increasing number of aftermarket parts in the market. The following table reveals the increasing
trend in the import of aftermarket parts to complement the parts not manufactured in the domestic market,
and more particularly, to service the increasing imported share of the vehicle parc of 11,71 million vehicles
in 2015, for which most parts have to be imported. The growth of cheaper products, imported mainly from
China, has exacerbated this trend. Replacement parts imports in 2015 increased by a further R7,3 billion or
15,3% to R55,38 billion from the R48,05 billion in 2014. With the exception of automotive tooling, which is
used in the production processes of vehicles and automotive components, the replacement parts imports
are not linked to value addition under the APDP.
74
IMPORTS
Top 10 replacement parts imported (R million) – 2011 to 2015
Parts category
2011
2012
2013
2014
2015
Automotive tooling
2 369
2 798
4 090
4 095
5 084
Tyres
3 206
3 610
3 990
4 856
4 771
Engine parts
2 960
3 074
3 546
3 879
4 231
Engines
1 181
1 243
1 361
1 707
2 811
1 302
1 414
1 774
1 913
2 065
1 138
1 206
1 543
1 592
1 985
1 244
1 303
1 607
1 622
1 895
Wiring harnesses
558
670
799
1 011
1 870
Brake parts
918
887
1 116
1 212
1 277
Lighting equipment / parts
805
746
933
1 004
1 118
Other
17 207
18 189
22 388
25 156
28 274
Total (R million)
32 888
35 140
43 147
48 047
55 381
Source: AIEC, SARS
The following table reveals that the countries of origin for the aftermarket parts imported were aligned with
the main countries of origin for new passenger cars and commercial vehicles. Imports from the traditional
markets such as Germany, the US and the UK have declined over recent years while imports from China
have increased, indicating the cost competitiveness of this increasingly dominant automotive force.
Top 10 countries of origin for replacement parts imported – 2011 to 2015
Country of origin
2011
2012
2013
2014
2015
Germany
24,9%
20,4%
19,9%
19,3%
18,8%
China
14,6%
15,9%
16,0%
16,1%
16,8%
USA
10,0%
10,2%
9,4%
9,6%
9,4%
Japan
8,2%
7,9%
7,1%
6,6%
7,3%
Thailand
3,8%
4,6%
5,0%
4,5%
4,7%
UK
3,5%
4,6%
5,3%
4,1%
3,6%
Italy
3,7%
3,9%
4,0%
3,8%
3,2%
Czech Republic
1,8%
1,8%
1,9%
2,2%
2,4%
India
2,0%
2,2%
2,2%
2,0%
2,3%
1,9%
2,6%
2,5%
2,7%
2,3%
Other
25,6%
25,9%
26,7%
29,1%
29,2%
Source: AIEC, SARS
75
IMPORTS
MAIN AUTOMOTIVE TRADING PARTNERS
The South African automotive industry forms an important part of international supply chains, considering
the industry’s expanding trade patterns over recent years. South Africa’s main automotive trading partners
(exports and imports combined) for 2015 reflected the country’s global linkages with the OEMs’ parent
companies in Germany, the US and Japan. The following tables reveal details and rankings of the South
African automotive industry’s top 10 automotive trading partners in 2015, and also reflect the top 10
products exported and imported, where applicable. Germany remained the domestic automotive
industry’s main trading partner over the past two decades, while Belgium replaced Brazil in the industry’s
top 10 trading partners in 2015.
1. Germany (Total trade R100 202,5 million) – 2015
Main products
Exports from SA
R34 992,1 million
Main products
Imports into SA
R65 210,4 million
Light vehicles
21 310,3
Original equipment components
37 412,7
8 931,8
Light vehicles
16 260,2
Engine parts
974,4
MCV / HCV vehicles
1 135,8
581,2
Engine parts
723,9
Radiators / parts
430,4
576,9
322,0
Automotive tooling
569,1
Tyres
270,5
502,4
202,0
455,7
Axles
190,8
Tyres
443,5
Filters
131,0
365,6
Other
1 647,7
Other
6 764,6
2. United States of America (USA) (Total trade R32 782,4 million) – 2015
Main products
Exports from SA
R20 946,9 million
Main products
Imports into SA
R11 835,5 million
Light vehicles
14 424,3
Light vehicles
4 743,9
4 063,0
1 835,0
Engine parts
922,5
Engine parts
765,1
Radiators / parts
227,9
Engines
511,9
177,5
418,5
Tyres
133,5
Tyres
316,5
Automotive tooling
116,7
282,8
Axles
80,8
Automotive tooling
266,0
Gear boxes
59,4
Axles
111,0
57,6
101,3
Other
683,7
Other
2 483,5
76
3. Japan (Total trade R29 862,1 million) – 2015
Main products
Exports from SA
R7 809,5 million
Main products
Imports into SA
R22 052,6 million
Light vehicles
6 995,4
11 560,7
112,7
Light vehicles
6 324,0
Tyres
5,3
Automotive tooling
1 138,2
5,0
Tyres
378,0
Springs
4,4
Engine parts
326,5
Engine parts
3,8
179,4
3,6
Axles
153,1
Brake parts
2,6
Engines
126,5
Automotive tooling
2,6
124,1
1,6
Brake parts
120,8
Other
1 621,3
Other
672,5
4. Thailand (Total trade R15 442,4 million) – 2015
Main products
Exports from SA
R1 648,7 million
Main products
Imports into SA
R13 793,7 million
Engine parts
819,6
9 385,5
407,4
Light vehicles
1 825,5
132,4
Tyres
312,2
Road wheels / parts
16,0
286,2
Light vehicles
10,3
Automotive tooling
224,0
Tyres
5,0
Wiring harnesses
130,0
4,3
101,8
Radiators / parts
3,5
Car radios
99,5
Brake parts
3,5
Filters
99,3
2,8
Road wheels / parts
83,3
Other
243,9
Other
1 246,4
5. United Kingdom (UK) (Total trade R15 437,4 million) – 2015
Main products
Exports from SA
R7 436,0 million
Main products
Imports into SA
R8 001,4 million
Light vehicles
4 809,9
Light vehicles
4 465,1
1 787,6
1 550,0
120,9
Engines
504,9
Automotive glass
87,9
Engine parts
170,8
Engine parts
81,3
Automotive tooling
142,1
Batteries
65,6
141,2
Automotive tooling
42,7
Alarm systems
74,1
Air conditioners
36,8
69,8
34,6
Tyres
52,5
Gaskets
17,1
44,7
Other
351,6
Other
786,2
77
6. Belgium (Total trade R14 077,8 million) – 2015
Main products
Light vehicles
Exports from SA
R13 162,2 million
12 643,6
Main products
Imports into SA
R915,6 million
Light vehicles
456,1
Radiators / parts
97,1
MCV / HCV vehicles
68,5
Automotive glass
77,6
Automotive tooling
24,3
48,9
23,2
Automotive tooling
40,7
Engine parts
22,9
Engine parts
32,5
21,0
Tyres
26,9
Lighting equipment
12,1
Brake parts
23,7
9,1
Filters
20,3
8,2
13,7
Automotive glass
4,7
Other
137,2
Other
265,5
7. China (Total trade R12 794,0 million) – 2015
Main products
Exports from SA
R208,1 million
Radiators / parts
39,5
3 072,3
25,3
Tyres
1 634,2
22,5
Automotive tooling
973,9
Engine parts
20,2
Engine parts
668,8
16,4
337,5
Engines
6,7
Engines
305,1
Air conditioners
5,0
270,2
3,5
Road wheels / parts
264,6
3,3
Brake parts
245,9
MCV / HCV vehicles
2,9
Automotive glass
205,0
Other
62,8
Other
4 608,4
Main products
Imports into SA
R12 585,9 million
8. India (Total trade R12 207,1 million) – 2015
Main products
Exports from SA
R1 416,8 million
Main products
Imports into SA
R10 790,3 million
Engines
871,3
Light vehicles
8 704,1
259,0
695,0
Road wheels / parts
107,5
Engines
163,2
Body parts / panels
73,5
Automotive tooling
139,9
Automotive tooling
30,1
129,4
Radiators / parts
17,9
Engines
109,9
12,7
MCV / HCV vehicles
96,3
4,7
52,4
Tyres
4,6
47,0
MCV / HCV vehicles
3,1
Lighting equipment
36,1
Other
32,4
Other
617,0
78
9. Spain (Total trade R10 084,2 million) – 2015
Main products
Exports from SA
R4 073,4 million
Main products
Imports into SA
R6 010,8 million
Light vehicles
1 846,7
Light vehicles
3 365,8
1 774,4
1 403,1
Radiators / parts
127,9
Tyres
232,0
Road wheels / parts
54,9
MCV / HCV vehicles
160,8
Tyres
51,3
Brake parts
54,6
Automotive tooling
37,2
Engine parts
51,6
Automotive glass
30,2
Lighting equipment
44,4
21,6
Automotive tooling
33,2
Lighting equipment
5,7
26,3
1,8
Body parts / panels
22,5
Other
616,5
Other
121,7
10. Korea Republic South (Total trade R7 699,9 million) – 2015
Main products
Exports from SA
R566,1 million
Main products
Imports into SA
R7 133,8 million
504,7
Light vehicles
5 326,0
40,8
474,0
Radiators / parts
5,3
Batteries
182,5
Engine parts
1,3
Tyres
154,6
Automotive tooling
1,1
Automotive tooling
103,9
MCV / HCV vehicles
0,6
Engines
72,0
Tyres
0,5
Engine parts
57,1
0,1
Filters
56,1
Other
11,7
52,8
MCV / HCV vehicles
45,9
Other
608,9
79
THE AUTOMOTIVE INDUSTRY’S
TRADE BALANCE
As the leading manufacturing sector in South Africa’s economy, the automotive industry’s export value
under the APDP in 2015 amounted to R151,5 billion, which comprised a significant 14,6% (11,7% in 2014)
of total South African exports of R1 037,2 billion, while the industry’s imports of R146,2 billion under the
APDP comprised 13,4 % (12,1% in 2014) of total South African imports of R1 087,6 billion.
Automotive exports surged to a new record of R151,5 billion or an improvement of 30,9% compared to the
R115,7 billion total export value in 2014. Record vehicle exports of 333 802 units in 2015, which exceeded
the previous record set in 2008 at 284 211 units by nearly 50 000 units, contributed to the industry’s export
performance. The more subdued year-on-year rise of 11,2% in imports, amounting to R146,2 billion, could
be attributed to declining new vehicle sales in 2015 for the second successive year, but with exchange
rate weakness resulting in sharp increases in the prices of imported vehicles and original equipment
components. However, rand exchange rate fluctuations in 2015 had varying impacts. Similarly, at an
individual company level, depending on the particular firm’s exposure to imports and exports and the
firm’s balance of trade, the impact of exchange rate fluctuations may vary.
The South African vehicle manufacturing industry accounts for only 0,68% of global vehicle production
in 2015 and, therefore, the industry remains reliant on global design, technologically sophisticated plant
and machinery and on imported high-value components. This has contributed to the outflow of foreign
exchange over the past two decades. The following table reveals that the trade surplus under the APDP
measurement is R5,3 billion compared to a deficit of R15,8 billion in 2014. This could by and large be
attributed to a significant 53,2% increase in vehicle and automotive component exports to the EU, by far the
domestic automotive industry’s main export region, increasing from R43,8 billion in 2014 to R67,1 in 2015,
coupled with a weakening rand against the US dollar-denominated export destinations. Africa provided
by far the biggest trade surplus, more than any other global region with which South Africa conducts
automotive business, followed by NAFTA. Elsewhere the country’s automotive trade was in deficit in 2015.
APDP-related trade balance for the automotive industry: 2013 – 2015
Year
Imports into SA
(R billion)
Exports from SA
(R billion)
Net forex usage
(R billion)
2013
126,7
102,7
(24,0)
2014
131,5
115,7
(15,8)
2015
146,2
151,5
5,3
EU
78,9
67,1
(11,8)
NAFTA
7,7
22,8
15,1
AFRICA (including SADC)
0,5
34,1
33,6
MERCOSUR
5,2
3,5
(1,7)
OTHER REGIONS
53,9
24,0
(29,9)
2015
146,2
151,5
5,3
Vehicles
61,6
101,9
40,3
Automotive components
(excluding aftermarket parts)
84,6
49,6
(35,0)
Source: AIEC, SARS
Including BLNS (Botswana, Lesotho, Namibia and Swaziland) country trade data
80
However, when all automotive products, including vehicles, OE components and aftermarket parts are
included, the industry as a whole still reflects a trade deficit, although at R45,2 billion in 2015, this is the
lowest deficit in real terms since 2011 (refer to the memo item and following table).
It should be noted that under the APDP, the basis for calculating the duty-free import credits is based
on value-added through the supply chain in the automotive manufacturing industry. There are certain
eligibility requirements under the programme to ensure that the beneficiaries are companies producing
substantial quantities of components for vehicle manufacturing, and to exclude accessories. Component
manufacturers have to supply at least 25% of their total turnover, or R10 million annually, as part of an
OEM supply chain domestically and/or internationally to comply under the APDP. In this regard, with the
exception of automotive tooling, which is used in the production processes of vehicles and automotive
components, the imported replacement parts are not linked to value addition in the country under the
APDP, and they are therefore not included in the automotive trade balance which is used to monitor the
progress of the APDP.
Under the APDP, as was the case under the MIDP, the level of imports remains a function of the success
of the programme as the benefits can only be used to rebate the import duties on vehicles and eligible
automotive components that are imported. A key strategy of the OEMs operating in South Africa is to
expand market share through a combination of domestic production of one or two relatively high-volume
models for the domestic and export markets, and to import models not manufactured in the country to
complement their domestic model mixes.
Memo item:
For the purposes of comparison of the 2013, 2014 and 2015 trade balance data under the APDP, based on a
holistic view of total automotive exports and imports (including vehicles, OE components and aftermarket
parts), total automotive imports were R196,7 billion in 2015 compared to the R177,9 billion in 2014. The
imported replacement parts, not linked to value addition in the country under the APDP, with the exception
of automotive tooling, amounted to R55,4 billion in 2015, reflecting an increase of 15,3% compared to the
R48,0 billion imported in 2014. The trade deficit narrowed to R45,2 billion in 2015, compared to the R62,2
billion in 2014, a significant reduction in real terms.
Overall automotive industry trade balance, including all automotive products
– 2010 to 2015
Year
Imports into SA
(R billion)
Exports from SA
(R billion)
Net forex usage
(R billion)
2010
102,2
79,3
(22,9)
2011
122,1
90,5
(31,6)
2012
137,2
94,9
(42,3)
2013
166,5
102,7
(63,8)
2014
177,9
115,7
(62,2)
2015
196,7
151,5
(45,2)
Vehicles
61,6
101,9
40,3
Automotive components
(including aftermarket parts)
135,1
49,6
(85,5)
Source: AIEC, SARS
Revised retrospective from 2010 to include BLNS (Botswana, Lesotho, Namibia and Swaziland) country
trade data
81
New vehicle and automotive component export growth in 2016 will remain a function of the direction and
performance of global markets, domestic OEMs’ export programmes, as well as an expected weaker rand
exchange rate compared with 2015. In particular the competitive exchange rate offers opportunities on
the export front.
New vehicle and automotive
component export growth in 2016
will remain a function of the direction
and performance of global markets,
domestic OEMs’ export programmes,
as well as an expected weaker rand
exchange rate compared with 2015.
82
POTENTIAL OPPORTUNITIES VIA TRADE
AND CO-OPERATION ARRANGEMENTS
South Africa has pursued participation at regional, bilateral and multilateral levels, promoting collaborative
agreements with both existing trade partners and fast-growing emerging markets. The country’s goal in
negotiating trade agreements is to support national development objectives, to promote intra-Africa trade,
as well as to enhance South Africa’s integration into global markets.
In addition to the SACU-EU free trade agreement, the SADC free trade area, and the African Growth and
Opportunity Act (AGOA) arrangement with the US, South Africa’s international stature is increasingly being
recognised, with the result that trade and investment opportunities for the country’s economy in general,
and for its automotive sector in particular are emerging. As an export-oriented economy, it is imperative for
South Africa and its automotive industry to continuously identify potential export opportunities via trade
and co-operation arrangements.
SADC – EAC – COMESA Tripartite Free Trade Area
South Africa’s destiny is inter-twined with those of countries on the continent. Industrial development
in the rest of Africa will directly benefit the South African economy, including contributing towards
faster economic growth and job creation. The tripartite free trade area (TFTA) consisting of the Southern
African Development Community (SADC), the East African Community (EAC) and the Common Market
for Eastern and Southern Africa (COMESA) was officially launched in Egypt on 10 June 2015. The TFTA
consists of 26 countries - which could increase to 27 should South Sudan join - with a combined GDP of
US$1,3 trillion and aims to bring about a unified and liberalised single market. The landmark arrangement
would be underpinned by robust infrastructure programmes designed to catalyse the regional market
through interconnectivity, facilitated by all modes of transport and telecommunications, and to promote
competitiveness. The launch signifies the conclusion of negotiations on the legal instrument and will
be followed by a process to finalise negotiations on tariffs and rules of origin, which represent the key
elements of a functional free trade area. The TFTA is an important milestone in the implementation of
the development integration agenda in Africa and is aimed at promoting market integration, based on
industrial and infrastructure development.
More countries are recognising that they need to find ways to make their markets more accessible and easier
to do business with. The benefits of the new tripartite free trade area are numerous. It has the potential
to increase economies of scale, which in turn will increase demand for the region’s goods and services.
Greater trade between countries that are members of Regional Economic Communities also helps drive
infrastructure development. Economies come alive when citizens exchange more information, technology
and knowledge. Dynamic economies again attract more foreign direct investment.
The South Africa/Southern African Customs Union (SACU) tariff offer for the East African Community
(EAC) in the TFTA negotiations has been approved and exchanged with the EAC. Other tariff offers are at
an advanced stage. Efforts are continuing to develop SADC standards to address non-tariff barriers that
impede trade and to promote trade facilitation. The Dti supported the work on infrastructure development
under the TFTA by contributing to South Africa’s negotiations on the memorandum of understanding for
the North-South Corridor.
83
The launch of the TFTA was followed by the launch of negotiations around the establishment of a
Continental FTA at the African Union on 15 June 2015. Once established, the CFTA would offer a market
of over one billion people and a GDP of US$2 trillion. At the moment only three of Africa’s eight Regional
Economic Communities are participating in the TFTA, although African countries have recognised the
potential to bolster economic development through greater co-operation in the areas of combining
resources, production, logistics infrastructure and services. In addition, trade barriers across the continent
have curtailed its growth prospects by driving up the cost of doing business. Lifting charges like export and
import fees could promote new markets and enhance profits.
The current membership of the three Regional Economic Communities (RECs) is summarised in the following
table. The countries in green font are the ones to which South Africa does not yet have preferential access.
Membership of the three Regional Economic Communities (RECs)
SADC
EAC
COMESA
Angola
Burundi
Burundi
Botswana
Kenya
Comoros
Rwanda
Lesotho
Tanzania
Djibouti
Madagascar
Uganda
Egypt
Malawi
Eritrea
Mauritius
Ethiopia
Mozambique
Kenya
Namibia
Libya
Seychelles
Madagascar
South Africa
Malawi
Swaziland
Mauritius
Tanzania
Rwanda
Zambia
Seychelles
Zimbabwe
Sudan
Swaziland
Uganda
Zambia
Zimbabwe
Regional integration could enhance opportunities for the automotive industry while the industry could
also be a driver of regional integration by placing pressure on governments to increase market access and
improve cross border infrastructure. South Africa was responsible for the production of 64% of Africa’s total
vehicle production in 2015. The opportunities that growth across the continent provides for the domestic
automotive industry are already evident in the changing pattern of South Africa’s exports. Vehicle and
automotive component exports to the three individual Regional Economic Communities in 2015 continued
to expand and amounted to R27,3 billion (R25,9 billion – 2014) in respect of SADC, R2,5 billion (R1,7 billion
– 2014) in respect of the EAC and R10,7 billion (R9,5 billion – 2014) in respect of COMESA. Harmonisation
of trade regimes, increased market liberalisation and various other areas of co-operation could present the
South African automotive industry with increased export opportunities.
84
BRICS
South Africa officially became a member nation of BRICS (Brazil, Russia, India, China and South Africa) on
24 December 2010. BRICS accounts for 43% of the world’s population and almost 30% of the global GDP. It
produces a third of the world’s industrial products and half of all agricultural goods.
The BRICS have had divergent economic fortunes in the recent past with Brazil and Russia, both large oil
producers, dipping into recession, China’s economy slowing down, South Africa’s macro-economic climate
weak, and only India showing economic momentum. China remains as an important engine driving the
economic growth of developing countries. China has, for six years in a row, been South Africa’s largest
trading partner, and China’s economic slowdown has had a major impact on the South African economy.
South Africa exports a range of commodities to China and as the country’s economy slows down, so too does
its demand for commodities. Trade figures with other BRICS member states have also declined, which could
be attributed to the mineral market super cycle which is past its peak due to stagnating commodity prices.
Although minerals still dominate South Africa’s exports to the BRICS countries, the focus going forward
would be on increasing value-added exports and promoting investments into each other’s economies.
The creation of the New Development Bank and the relevant pool of foreign exchange reserves will
strengthen the relationship between the BRICS countries. The bank will provide financial support to the
BRICS grouping, particularly for infrastructure and sustainable developments. It will be headquartered in
Shanghai, China, and will have its first regional office in Johannesburg. The initiative gives impetus to South
Africa’s role as a financial centre for Africa, and will facilitate access to global finance by African investors
and institutions.
South Africa’s participation in BRICS presents important opportunities for the country to build its domestic
automotive manufacturing base and to expand trade and investment opportunities. China, with 24,5
million units, was the top vehicle producing country in 2015, with India in the 6th position, Brazil 9th and
Russia in 13th position. China and India were among South Africa’s top 10 automotive trading partners in
2015, while India and Brazil were two of the countries to which South Africa’s automotive export values
more than doubled on a year-on-year basis. The following table reveals that the automotive trade balance,
however, remains in favour of these countries, except for Russia. In 2015, the automotive import to export
value ratio was 60,4 to 1 in favour of China, 7,6 to 1 in favour of India and 1,9 to 1 in favour of Brazil.
Automotive trade balance and ratio 2015 – imports vs exports
Country
2015 imports into SA
(R million)
2015 exports from SA
(R million)
China
12 585,9
208,1
Ratio
60
1
India
10 790,3
1 416,8
Ratio
8
1
Brazil
4 725,2
2 430,0
Ratio
2
1
Russia
28,4
230,6
Ratio
0,1
1
Source: AIEC, SARS
South Africa’s role in African trade is crucial. As a gateway into the continent, South Africa is expected to
play a unique role in promoting BRICS-African co-operation. China is the largest developing country and
Africa is home to the biggest number of developing countries. China-Africa co-operation will assist Africa
85
in fulfilling its ambitions of industrialisation and economic integration. South Africa, with its know-how and
built-for-Africa vehicles, is ideally placed to benefit from the increased demand for vehicles and automotive
components on the continent.
SACU – India preferential trade agreement (PTA)
The Southern African Customs Union (SACU) and India have been engaged in a formal process of trade
negotiations since 2008 that is intended to lead to a preferential trade agreement (PTA). The negotiations
in respect of the PTA are confined to a pre-determined number of product or tariff lines of special interest
to the respective parties. A consultative process to compile a list of products of export interest to South
African economic operators and exporters was undertaken within the National Economic Development
and Labour Council (NEDLAC). Both SACU and India are still engaged in formulating their national positions
in relation to the request lists. Automotive products also feature in these request lists and could potentially
enhance trade and investment opportunities in the domestic automotive industry. Many synergies
between South Africa and India already exist that could be used to enhance two-way automotive trade
between the two countries. Both countries form part of the BRICS coalition, while India was South Africa’s
eighth largest automotive trading partner in 2015, as well as the domestic industry’s main country of origin
for vehicle imports in volume terms over recent years. Automotive exports to India amounted to R1,42
billion in 2015 and consisted mainly of engines, catalytic converters, road wheels and parts, body parts and
panels, and automotive tooling. Automotive imports from India amounted to R10,79 billion in 2015 and
consisted mainly of light vehicles and original equipment components.
SACU – EFTA free trade agreement
On 26 June 2006 the Southern African Customs Union (SACU) and the European Free Trade Association
(EFTA) signed an agreement to establish a free trade agreement (FTA) between the two regions. EFTA
consists of Norway, Switzerland, Iceland and Liechtenstein. The free trade agreement provides for reciprocal
preferential market access between EFTA and SACU states. The SACU–EFTA FTA, which came into force on 1
May 2008 provides for South African economic operators to take advantage of trade opportunities offered
by the agreement, and also for the harmonisation of trade relations with Western Europe in view of the
free trade agreement that SACU enjoys with the EU. In terms of access to EFTA, the latter offered South
Africa full duty- and quota-free access for industrial products. For its part, South Africa offered EFTA what
it had already offered the EU on both processed agricultural products and industrial products, with some
marginal adjustments. The following table reveals the South African automotive industry’s trade balance
with EFTA countries in 2015.
Automotive trade balance 2015 – EFTA countries
EFTA countries
2015 imports into SA
(R million)
2015 exports from SA
(R million)
Switzerland
559,1
127,6
Norway
41,5
128,6
Iceland
-
37,3
0,3
-
Liechtenstein
Source: AIEC, SARS
The FTA brings about a number of benefits to South African exporters, which include duty-free market
access for SACU products, including vehicles and automotive components, to EFTA markets. Automotive
exports to Switzerland, Norway and Iceland have continued to grow in 2015.
86
SOUTH AFRICAN AUTOMOTIVE
INDUSTRY GROWTH PROSPECTS
The automotive industry is central to the South African government’s efforts to industrialise and reindustrialise the country’s economy, as South Africa is increasingly being recognised as a world class
manufacturer of vehicles and automotive components. The automotive industry’s performance is based on
a partnership approach between OEMs, as the key drivers of the automotive supply chain, and government.
Globally, supply chains compete against supply chains, not only on end-products, and the entire industry
benefits when the supplier base is strong and competitive.
As a key partner in the development and growth of the domestic automotive industry, government’s
commitment to and confidence in the future of the industry is illustrated in its developmental policy
regimes in the form of the MIDP and APDP, as well as their assurance that policy support will continue
beyond 2020. The automotive manufacturing sector has a significant impact on the economy and has
been identified as one of the industries with the highest potential for sustainable export growth, which will
support an increase in employment, in addition to making a substantial contribution to socio-economic
upliftment in the country. In a highly competitive global economy, creating an enabling environment for
domestic and foreign investments is paramount for business expansion and economic growth. The stable,
pro-investment automotive policy framework is therefore vital as it has significantly enhanced investor
confidence in the domestic automotive industry.
For countries wanting to establish manufacturing plants or expand their existing plants, South Africa,
as the most sophisticated industrial manufacturing base on the African continent, remains an attractive
destination of choice. The country’s attractiveness as a sub-contracting hub for automotive manufacturing
includes:
•
•
•
•
•
•
•
•
•
Long term policy certainty and predictability
Internationally competitive incentives and support measures
Favourable trade arrangements with the EU, EFTA, the US and SADC
World-class logistics suitable for import and export operations
Availability of requisite skills
First-world business sector and high-quality office and business park facilities
Quality private schools, sophisticated cosmopolitan cities and acknowledged quality of life
European time zone
Ranked number 1 in the cost-of-living index by the International Institute for Management
Development (IMD) World Competitiveness Center 2015 competitiveness ranking, number 2 in
effective personal income-tax rate and number 3 in stock market capitalisation.
Strong global linkages, supplier development and competitiveness improvement throughout the
supply chain will remain critically important to support the sustainable future development of the
South African automotive industry. For manufacturing sectors that rely heavily on export markets, such
as the automotive sector, competitiveness is vital to their success. The improvement of the automotive
industry’s competitiveness is centred on supplier development, localisation, competitive logistics and,
most importantly, achieving economies of scale. Therefore, continuous efforts to grow the South African
automotive industry’s export business are imperative to achieve the vision of substantially increasing
vehicle production in the country by 2020.
87
The potential for Africa as a future market for exports, as well as the newly reviewed APDP should enable
South Africa to play a significant role in the production of vehicles for export to African markets. In this
regard, government is increasingly aware of the opportunity being presented by the rise of a number of
African economies. South Africa already has an established automotive supply chain and has established
distribution channels into the continent, which makes it easier to do business in Africa.
The country’s potential for economic growth remains solid but the economy will not recover on its own.
It requires a focused drive on the part of government to stimulate the private sector by ensuring that
the business environment is free from encumbrances so that the momentum of investments and investor
returns are enhanced. The South African automotive industry continues to demonstrate what can be
accomplished when constructive collaboration between stakeholders takes place.
The South African automotive
industry continues to
demonstrate what can be
accomplished when constructive
collaboration between
stakeholders takes place.
88
KEY MOTOR INDUSTRY CONTACT DETAILS
Automotive Industry Export Council (AIEC)
P O Box 40611
Arcadia
0007
Telephone: +27 12 807 0086/0152
Telefax: +27 12 807 0481
Website: www.aiec.co.za
Department of Trade & Industry (the dti)
Trade and Investment South Africa (TISA)
Export Marketing & Investment Assistance Scheme (EMIA)
Private Bag X84
Pretoria
0001
Telephone: +27 12 394 9500 (International)
Telephone: 0861 843 384 (Customer Care Centre)
Website: www.thedti.gov.za
National Association of Automotive Component & Allied Manufacturers (NAACAM)
P O Box 9558
Edenglen
1613
Telephone: +27 11 392 4060
Telefax: +27 86 659 0494
Website: www.naacam.co.za
National Association of Automobile Manufacturers of South Africa (NAAMSA)
P O Box 40611
Arcadia
0007
Telephone: +27 12 807 0086/0152
Telefax: +27 12 807 0481
Website: www.naamsa.co.za
Retail Motor Industry Organisation (RMI)
P O Box 2940
Randburg
2125
Telephone: +27 11 789 2542/886 6300
Telefax: +27 11 789 4525
Website: www.rmi.org.za
89
90
Standard disclaimer
The trade data is based on eligible APDP products. The AIEC cannot vouch for the accuracy of the information
obtained from the source. Due to certain limitations, Customs and Excise statistics cannot always distinguish
between automotive components eligible in terms of the APDP and non-APDP components. The main
purpose of this trade data is to discern trends in exports and export destinations, as well as imports and
countries of origin.
91
ISBN:978-0-620-70287-4
92
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Inspiring new ways

automotive export manual

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