Components demand a good sign for SA’s automotive industry

Promising growth in demand by vehicle manufacturers for SA-made automotive components cannot hide underlying challenges faced by the local components industry, a report noted on Thursday.

This is well ahead of vehicle production growth. The top 25% of suppliers grew sales by 16.5%. Average job numbers grew 3.5% over the period. Among leading companies, the figure for 2018 alone was 6.4%. Average supplier operating profits rose 6.2% in 2017 and 4.3% in 2018. Productivity also improved.

That’s not good news in an industry where component-sourcing decisions are taken in Europe, Asia and the US. Also concerning is that, according to the B&M report, fewer motor companies believe there are opportunities to increase purchases from current direct suppliers, or to commit to longer-term relationships. Despite this, Naacam director Renai Moothilal said: “Opportunities exist in the areas of supplying more of current products, supplying additional products in the existing range, and supplying newly developed products.

Colombia Últimas Noticias, Colombia Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Industry in renewed battle over mining charterThe minerals council, which represents around 90% of South Africa’s mineral production, is taking the 2018 mining charter on judicial review over provisions in the policy that it says remain “untenable” it announced in a statement on Wednesday morning.
Fuente: mailandguardian - 🏆 2. / 92 Leer más »

OPINIONISTA: South Africa needs urgent policy reform to save its embattled mining industryIn a newly released report for the SA Institute of Race Relations, I explore the significance of the mining industry in South Africa, its far-reaching impact on the economy, and why urgent policy changes are needed to revitalise it.
Fuente: dailymaverick - 🏆 3. / 84 Leer más »

Risk of litigation, business closures due to load shedding, industry warnsThe leaders of industry bodies have told Fin24 that load shedding is not just a minor pain for companies, but poses a risk of closures, lost clients and even litigation.
Fuente: News24 - 🏆 4. / 80 Leer más »