STRONG COMPONENTS REPRESENTATION AT AUTO AFRICA CONFIRMS BUOYANCY OF SECTOR
Statistics show that the automotive component sector is experiencing a period of growth both locally and globally.
The export of total South African automotive exports are fast challenging gold as the leading earner of foreign exchange despite the strength of the Rand, says the National Association of Automotive Component and Allied Manufacturers (NAACAM). In 2002, total automotive exports generated R41.1-billion, while Department of Minerals and Energy figures (DME) show foreign revenue of R40.1-billion over the same period.
The association says that while locally produced content of vehicles manufactured in SA grew by 5% to 55%, exports of completely built-up units (CBUs) and components have grown at a compounded annual growth of 38% since 1995. CBUs grew by 50,9% to R17,2-billion in 2002, following an increase of 54% the previous year. Components expanded by 23,1% to R22,9-billion in 2002, following a 47,9% increase the previous year, according to the Department of Trade and Industry’s (DTI) investment arm, TISA (Trade and Investment South Africa) report. It went on to say that the expected growth for 2003 for the total automotive was likely to be R46-billion, but may be lower with the continuing strength of the Rand.
NAACAM figures for 2003 show that the strong local currency has affected the components industry. There was a slight dip in the revenue generated from 2002 to the following year from R22-billion to R21-billion
“The numbers of locally produced vehicles that are exported from South African have increased significantly allowing the components manufactured in the local market to also enjoy the volume benefit. As the volume increases per vehicle platform assembled locally, so does the competitiveness of the local industry on the back of the very successful Motor Industry Development Programme,” says Dave Coffey, president of NAACAM.
NAACAM will be holding its annual general meeting during the course of Auto Africa 2004. “This is the conference that has the full support of all stakeholders in the South African auto industry and one which is used to showcase the substance of the local auto industry to the world and to the public at large,” Coffey adds.
“NAACAM fully endorses Auto Africa as the premier event for the South African Auto Industry,” he says. This statement is further reinforced by the endorsement of the Retail Motor Industry Organisation (RMI) and the National Association of Automotive Manufacturers of South Africa (NAAMSA).
“The South African industry has established itself firmly within the automotive manufacturing and components sphere globally. The international market has recognised the high level of quality that accompanies South African products, which is affirmed by the growth in the industry,” says Pula Dippenaar, Auto Africa 2004 exhibition manager. “The fact that many international companies have invested in manufacturing plants in South Africa reflects this confidence.”
TISA figures confirm the upward trend. The European Union is one of the biggest destinations for South African components. In 2002, 70,8% of exports were destined for that region. “The auto industry has been forced to become competitive as a result of global trade forces after South Africa was given access to global markets, as well as with the decline of duty protection. In addition, various local manufacturing benchmark clubs have helped local component manufacturers become more competitive. International companies have invested in South Africa bringing in technology, foreign best practice while enjoying the lower labour and energy costs when compared to Europe and the USA. Now we have to compete with the South East Asian countries while free trade agreements are in negotiation – this has created a new level of competitiveness that our industry has to meet,” Coffey concludes.
Auto Africa 2004, to be held at Nasrec south of Johannesburg between 25 and 31 October, is the continent’s premier motoring show and is held every two years. At its core, Auto Africa is a truly comprehensive automotive trade exhibition, drawing participants in increasing numbers to exhibit. In 2004, exhibitors will be spread across the following clusters:
New passenger and leisure vehicles, which form the core of the event in dedicated exhibition halls.
They are supported by truck and bus displays, which are located in separate halls.
Allied Industries are accommodated in the equipment halls and include:
- Manufacturing, robotics, raw materials and technology;
- Components, wheels and tyres, fuels and lubricants;
- Parts and accessories;
- Garage equipment and workshop furnishings;
- Collision repair suppliers and technology;
- Information technology and software solutions;
- Trucking manufacturers, components suppliers and service products;
- Specialized services to the automotive industry.
- Outdoor exhibits, SUV exhibits and motorcycles as well as demonstration and activity centres are located outside the halls, within the Nasrec perimeter.