SA motor industry defies economic, political turbulence

Dr Azar Jammine, Director and Chief Economist at Econometrix

Dr Azar Jammine, Director and Chief Economist at Econometrix

By MTHULISI SIBANDA

JOHANNESBURG, (CAJ News) – THE South African motor industry is faring well in defiance of a tough economic environment exacerbated by political turmoil.
Renowned economics commentator, Dr Azar Jammine, said although the country was technically in a recession, with negative growth for two consecutive quarters, there were some bright points in the local economy, with the motor industry one of them.
Encouragement also comes from a rise in the demand for electricity, a lower-than-expected inflation rate, vehicle price increases slowing, the price of fuel falling, a big improvement in the motor industry trade balance and a brighter outlook for the global economy.
Jammine, the Director and Chief Economist at Econometrix, noted South Africa remained the biggest vehicle market in Africa by far, accounting for 37 percent of new vehicle sales on the continent.
North African countries Egypt, Morocco, Algeria, Tunisia and Libya followed it.
Interestingly, the island of Reunion, in seventh place, recorded more new vehicle sales (27 697) than eighth-placed Nigeria (20 000), which had been seen as Africa’s powerhouse, but is now battling with a big downturn in its economy as the oil price stays comparatively low.
The economist said the local motor industry remained an important player in terms of exports from South Africa of built-up vehicles, automotive components and replacement parts which was good news for the overall health of the industry.
Automotive exports had grown 80,3 percent between 2012 and 2016, while the rate of imports was slower with an increase of 48,7 percent
This had resulted in a significant drop in the motor industry’s trade deficit Automotive exports had grown 80,3 percent between 2012 and 2016, while the rate of imports was slower with an increase of 48,7 percent.
This had resulted in a significant drop in the motor industry’s trade deficit over the past five years, going from R42,3 billion in 2012 to R32,9 billion in 2016.
Jammine was speaking in Johannesburg ahead of the Automechanika Johannesburg scheduled for September 27-30.
CAJ News

 

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Posted by on Jul 5 2017. Filed under Car tests & New Models, Featured, Finance, Motoring, Motoring News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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