Reflecting on the new vehicle sales statistics for the month of November 2020 naamsa said that, although the gradual monthly gains in sales growth by volume in the new vehicle market continued during the month, the year-to-date situation remained depressed. Aggregate domestic sales at 39 315 units reflected a decline of 5 355 units, or 12,0%, from the 44 670 vehicles sold in November last year.

The trend was mirrored by export sales at 31 966 units which also declined by 2 622 units, or 7,6%, compared to the 34 588 vehicles exported in November 2019. The performance for the year to date now reflected a fall of 122 987 vehicles, or 32,9% compared to the level of the same period last year.

Notwithstanding a solid monthly performance, exports of South African manufactured vehicles remained in arrears as a second-wave lockdown in major markets impact on consumer behaviour and demand. Vehicle exports are important to the viability of the domestic automotive industry.

In 2019, the record 387 125 left and right-hand drive vehicles exported supported record vehicle production of 631 983 vehicles as well as employment gains in the vehicle manufacturing side of the industry. For the year to date, vehicle exports, however, are still 32,9% below the level of the same period last year.

Download the full NAAMSA media release below as well as the November 2020 Industry New Vehicle Sales. 

 

IMPORTANT ANNOUNCEMENT

The implementation date of the Automotive Production Development Programme (APDP2) Phase 2 will officially start on 1 July 2021 and the draft documents that give effect to this change will be published before the end of this year.

“New vehicle sales in South Africa are slowly picking up but not at 2019 levels yet. We are not out of the woods yet. While vehicle exports are making a steady comeback, we remain cautiously anxious about the reports of a COVID-19 second wave across Europe which could further depress our overall outlook for the balance of this year”, said Mikel Mabasa, naamsa CEO.

Reflecting on the new vehicle sales statistics for the month of October 2020, naamsa confirmed that the downward trajectory in new vehicle market continued during the month, albeit at a slower pace with aggregate domestic sales at 38 752 units reflecting a decline of 13 216 units, or 25,4% from the 51 968 vehicles sold in October last year. Export sales at 33 474 units also declined by 7 792 units or 18,9% compared to the 41 266 vehicles exported in October 2019.

Vehicle export numbers are gradually regaining momentum but in terms of a recovery much will depend on an improvement in the economic climate of the South African automotive industry’s main trading partners.

Download the full NAAMSA media release below as well as the October 2020 Industry New Vehicle Sales. 

Moody’s in October said it expects global auto sales to fall 20 percent in 2020, with a healthy 11.5% percent rebound in 2021.

Regardless of the forecasts, recovery in the automotive supply chain is likely to be slow and businesses may remain under strain as buyers adjust to the economical fall-out, for an extended period.

As an agency of the Eastern Cape Provincial government, the AIDC EC is mandated to assist manufacturers grow but also retain jobs and productivity though periods of distress.  As a result, they are now offering manufacturing companies subsidized support to minimize the effect of the disruptions and constraints and overall resource drain.

AIDC EC are offering regional manufacturing firms their resources to identify opportunities for quick sustainable wins, combating the economic pressures into the next period of the pandemic by streamlining your operations and business processes through any of the following:

• Fast tracked introduction and implementation/piloting of TPS/TPM
• Strengthened QMS in Product quality and waste management
• World class and LEAN manufacturing support
• Energy improvement plan with detailed assessment analysis
• Improved individual productivity and organisational performance
• Specialised technical training and development
• Shop floor skills Training and education
• Business Diagnostic

Speak to them if you could benefit from this support, which is measured against agreed tangible improvement targets.

Email info@aidcec.co.za or call Hoosain Mahomed at 082 578 5263.

 

 

The entire motor industry was able to resume full operation in June 2020 under the current COVID-19 country lockdown restrictions. Although markedly up from the previous two months, the new vehicle market continued to remain under severe pressure.

Vehicle exports for the first half of year currently reflects a massive decline of 40,3% compared to the same period last year. The performance of vehicle exports over the course of 2020 remains linked to the duration of the COVID-19 pandemic and its impact on the health of the global economy. Economic activity has declined drastically in countries and regions where lockdowns have been enforced and the recovery time frame is difficult to predict.

With the entire motor industry easing into full operation from 1 June 2020 and with the domestic automotive industry’s major export destinations starting to ease their lockdown restrictions, vehicle export numbers are anticipated to start gaining momentum again.

Download below the full NAAMSA Media Release and June 2020 industry New Vehicle Sales.

Although export sales, at 10 819 units, registered a big fall of 19 333 units or a decline of 64,1% compared to the 30 152 vehicles exported in May last year, this was an improvement on April 2020 considering that many of the vehicle manufacturers will only commence production in June 2020.

The performance of vehicle exports over the course of 2020 remains linked to the duration of the Covid-19 pandemic and its impact on the global economy. With all the OEMs gearing up for full production from 1 June 2020 onwards and with the domestic automotive industry’s major export destinations starting to ease their lockdown restrictions, vehicle export numbers are anticipated to start gaining momentum again.

The sector continues to take the health and safety of all its employees, suppliers, contractors, and partners very seriously and the systems we have put in place are not only robust but effective in assisting us to manage the risk of infection across the entire manufacturing environment.

Download the full NAAMSA media release below as well as the May 2020 Industry New Vehicle Sales. 

• Uitenhage plant restarts production in line with Level 4 lockdown regulations
• 100-point plan implemented to protect employees on site

Uitenhage – Following a gradual ramp-up of its local production, the Volkswagen Group South Africa (VWSA) plant in Uitenhage has resumed its manufacturing operations.

In line with the regulations pertaining to Level 4 of lockdown, VWSA production was restarted on 4 May, with essential employees returning to work in a phased approach. The company has since started exporting Polos to various markets, in addition to manufacturing Polos and Vivos for the local market. On-site employees are supported by colleagues who continue to work from home where this is possible.

Prior to the gradual ramp-up of production, a number of measures to combat Covid-19 were put in place at all VWSA sites. These measures form part of a 100-point plan implemented across the Volkswagen Group to ensure the health and safety of employees. The plant’s on-site Wellness Centre has been equipped and its staff continues to consult with high-risk employees to ensure their wellbeing is prioritised.

Upon their return to work, employees were informed of the new protocols through employee orientation sessions, a detailed booklet and extensive signage installed at all sites and areas. Returning employees were further informed regarding hygiene and physical distancing practices that can further protect them. The company also provided each employee with a set of masks and over 20 tons of hand sanitiser have been sourced for all VWSA sites.

“Our essential services team ensured that the workplace was Covid-19 compliant before we officially restarted production in Uitenhage,” said Jens Bruecker, Production Director at VWSA. “Our 100-point plan is designed to ensure that all employees feel safe and good about their workplace, so we can manufacture and deliver vehicles without compromising our commitment to the wellbeing of our employees.”

“With dealerships being allowed to reopen on a phased basis, VWSA will again be able to meet the needs of its loyal local customer base,” said Mike Glendinning, VWSA’s Sales and Marketing Director. “Our team has worked remotely during the lockdown to support dealerships in preparing to reopen, and to assist customers through our Customer Interaction Centre. In addition, VW Commercial Vehicle dealerships remained open over the lockdown period to service vehicles for essential services. We look forward to welcoming our customers back to the dealerships, and we are taking every precaution to prepare for this.”

VWSA’s Chairman and Managing Director, Thomas Schaefer, thanked Naamsa for its assistance in lobbying with government for the automotive industry to be allowed to reopen. “The automotive industry has a crucial role to play in the local and national economy,” said Schaefer. “We are grateful that this role was acknowledged with the decision to let the industry operate and trade again.”

“In many aspects, the Covid-19 crisis has eclipsed our daily lives. As such, it must be our main priority at VWSA to act responsibly in every aspect of our business – and this includes, first and foremost, to ensure that our employees can work without risking their health. We will continue our extensive efforts to fulfil this duty,” Schaefer concluded.

 

For more information contact:

Andile Dlamini

Head: Group Communications

Volkswagen Group South Africa

Mobile: +27 82 451 5415

Work:    +27 41 994 5042

E-mail:  andile.dlamini@vwsa.co.za