The Automotive Business Council, NAAMSA has recorded a third consecutive decline in new vehicle sales for November. The intensity of rolling blackouts and supply chain disruptions at Transnet, contributed to the prolonged weakness in new car sales. NAAMSA says the current logistical challenges at the country’s ports and across the entire freight rail network are affecting the vehicle production landscape.
NAAMSA says logistical challenges are fast becoming the single biggest risk for the sector if not addressed. And that the current challenges will soon have a devastating impact on the entire auto value chain.
The sector’s productivity relies heavily on infrastructure investment, sustainable energy supply and the revitalization of South Africa’s ports, rail and road networks. All new vehicle market segments declined, with a silver lining coming from export sales which increased by 23. 5 %.
The new vehicle sales market fell by 1.3 %, below the pre-pandemic level of 2019. The dealer market and car rental sales accounted for 82. 4 % of new passenger vehicle sales. Some CEO’s representing international car manufacturers in South Africa have expressed concerns about the country’s worsening infrastructure. With some companies threatening to pull out of the country if the energy and logistic constraints are not urgently addressed.
Meanwhile, stakeholders in automotive industry are meeting with Trade and Industry Minister Ebrahim Patel in East London on Friday to discuss issues affecting the sector.
Source: eNCA
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