South Africa’ motor industry is expected to increase its trading revenue to R230-billion this year compared with R201,7-billion last year, an industry representative body said on Monday.
In its annual report, the National Association of Automobile Manufactures of South Africa (Naamsa) said the revenue was on the projected total sales of 714Â 500 vehicles — an improvement of 15,7% on 2005 sales figures. Domestically manufactured vehicles were expected to increase by 17% to 614Â 470 units.
South Africa’s vehicle industry has set an ambitious goal of selling a million vehicles by 2010, a dream seen doable by some economists and analysts despite the tightening monetary cycle and fresh estimates that vehicles-sales growth was expected to slow in 2007.
Naamsa said sales volumes were expected to slow down in 2007 with the passenger-car market seen slowing to 7,8% from 15,8%, the light-delivery vehicles seen cooling off to 10,9% from 16,1% and the medium- and heavy commercial vehicles expected to register 10,6% improvement compared with 20,2% last year. The total vehicle sales are projected at 779Â 500 units.
“The impact of the recent change in car-allowance taxation provisions will become apparent during 2007 and could negatively affect demand for premium cars,” Naamsa said.
The body added that South Africa’s export market was expected to increase by 31% to 43Â 500 units.
It attributed the increase in exports sales to robust export programmes being implemented by most vehicles manufactures.
“Vehicles exports doubled from 1990 to 2003 and this trend is set to continue between 2004 and 2007,” Naamsa said. — I-Net Bridge