SA auto industry achieves R21bn positive trade balance

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Belgique Nouvelles Nouvelles

Driven by record vehicle exports, and outperforming the rest of the manufacturing sector.

Record vehicle exports helped take South Africa’s auto trade balance to a positive R21.1 billion in 2023 from R19.6 billion in 2022 – an increase of 7.6%.

“As the largest manufacturing sector in the country’s economy, a substantial 21.9% of value addition within the domestic manufacturing output was derived from vehicle and automotive component manufacturing in 2023, while the broader automotive industry’s contribution to the GDP comprised 5.3% – 3.2% manufacturing and 2.1% retail.

Lamprecht said this could mainly be attributed to a record vehicle export performance, resulting in vehicle export revenue increasing by 29.9% to R203.9 billion in 2023 from R157.0 billion in 2022. Exports to the EU, the domestic automotive industry’s top export region, increased to a record R147.1 billion in 2023, while exports to Africa, its second-largest export region, rose to a record R42.8 billion.

Patel added that there was R50 billion in new investments by the industry between 2019 to 2023 for plant upgrades, new models, component manufacturing and new vehicle manufacturing factories.

 

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