THERE should be strong growth in South African car assembly volumes this year, boosted primarily by growth in export volumes, according to London-based Richard Gane, PricewaterhouseCoopers’ global auto industry partner. He said on Wednesday that domestic sales had grown strongly to September but cautioned that “in the mid-term” South Africa’s “fragile economic situation” could be negatively influenced by global conditions, resulting in slow sales. Negative factors impinging on the outlook for the South African auto industry included the Zimbabwean situation, which could continue to affect confidence, and the Aids epidemic, which was depleting the working age population. But Gane expected these negatives to be more than offset by market reforms that could lead to regional economic expansion. “Reduced import tariffs and increased foreign investment will expand regional market opportunities. Continued export agreements maintain stability in South Africa’s automotive industry and encourage confidence, despite the political crisis in Zimbabwe,” he said. Gane characterised as “impressive” South Africa’s burgeoning automotive exports and the fact that the country’s new car sales had been improving at a time when sales in other EMEA emerging markets, like Poland, the Czech Republic and Turkey, had been declining. – Sapa