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.