The Automotive Business Council is pleased to announce that at its Annual General Assembly held on Thursday, October 28, 2021:
In his Annual Presidential Report, the outgoing naamsa President, Andrew KIRBY said that “the COVID-19 pandemic has continued to pose unprecedented challenges for our economy, our industry, our individual businesses, our people and the communities we serve. Our employees have shown tremendous resilience and dedication, making sacrifices and contributions to alleviate the public health emergency while supporting our industry the best way they can, often under very difficult circumstances”, Kirby said.
He further expressed his thanks to all automotive employees across the entire auto value chain, “for their care to one another, to our suppliers, to our customers and to society at large. As an industry and throughout the pandemic, our first collective priority has been the health, safety and wellbeing of our employees. We have truly displayed the culture of partnership, consistency and trust, we moved at pace to adapt new ways of working, we captured emerging opportunities with our partners in Government, the union movement, with our consumers and trade partners, delivering further efficiencies and continuing to invest in the foundations of our long-term success. These gains should be celebrated without equivocation” said Mr. Kirby.
Mr. Kirby also shared an update on the performance of the South African automotive industry and said that the sharp drop in global and domestic market demand through the early part of 2020, caused by the abrupt and widespread stoppage of trade and economic activity, has severely impacted the globally integrated South African automotive value chain. As a result, the automotive industry contribution to the fiscus declined by 23,4% and was recorded at 4,9% in 2020, compared to the 6,4% automotive contribution to GDP recorded for 2019.
“The vehicle and components production as a percentage of South Africa’s manufacturing output was 18,7%. It is worth noting that the automotive sector remained one of the most visible sectors receiving foreign investments, with the seven OEMs investing a record R9,2 billion in 2020, while the component sector invested R2,4billion in 2020. Investment at this scale is significant and will promote local valueaddition, while importantly, technology is also embodied in the investment,” said Kirby.
“The strong rebound in global economic activity in 2021 also supported vehicle export volumes which, for the first half of 2021 and reflected a 65,8% ahead of the corresponding period 2020, while only 0,9% below the level of exported vehicle volumes recorded for the first half 2019. When we measure our progress against our four key performance indicators [KPIs], our year-to-date figures for September 2021 show that, new vehicle sales increased by 30,3%; export increased by 19,6%; vehicle production increased by 21,7%; and imports increased by 34,4%, all compared to the corresponding period last year [September 2020]. While we welcome this progression for the year under review compared to 2020, we are still not out of the woods yet because our year-to-date domestic new vehicle sales numbers are still 13,3% below the recorded numbers for 2019 year-to-date. Export and imports sales reflected a decline of 25,4% and 8,8% respectively compared to 2019 year-to-date. Our domestic production numbers recorded 22,8% drop compared to the same corresponding period in 2019”, said Kirby.
“Contrary to the observed declining market trends and as expected according to the growing demand for NEVs from SA’s leading export markets, the electric, plug-in hybrid and traditional hybrid year-todate vehicle sales have increased by 28,8%, compared to the same period last year, and have also increased by 13,4%, compared to the 2019 pre-COVID-19 statistics. Our naamsa team predicts that a full recovery is likely to be protracted until around 2023”, Kirby concluded.
naamsa wished all its newly Elected Officer Bearers success and everything of the best during their two year term of office.