naamsa releases quarterly review of business conditions for the South African motor vehicle manufacturing industry

Industry vehicle sales, export, and import statistics for 2015 through 2023, together with current projections for 2024 and 2025, are reflected on the attachment to the submission.

KEY FEATURES: SECOND QUARTER 2024

  • Second quarter 2024 aggregate industry employment as at 30th June 2024 totalled 33,237 reflecting a decline of 137 jobs compared to the 33,374 industry head count as at the end of March 2024;
  • Aggregate new vehicle sales during the second quarter 2024 recorded a decline of 9,6% compared to the corresponding quarter 2023 and a decline of 12,1% compared to the first quarter 2024;
  • New energy vehicle [NEV] sales by 18 industry brands increased by 169,8% from 1,528 units in the second quarter 2023 to 4,122 units in the second quarter 2024;
  • Average industry capacity utilisation levels during the second quarter 2024 continued to reflect the impact of supply chain disruptions caused by the ongoing port congestion and delays while a constraint domestic new vehicle market along with lower vehicle export volumes impacted differently on the different OEMs’ vehicle production volumes;
  • Aggregate capital expenditure by the major light vehicle manufacturers in 2023 amounted to R5,2 billion, linked to new generation model investments;
  • South Africa’s global vehicle production market share increased from 0,65% in 2022 to 0,67% in 2023, but its global vehicle production ranking remained at 22nd;
  • Second quarter 2024 domestic vehicle production reflected a decrease of 15,5% compared to the corresponding quarter 2023;
  • Vehicle exports decreased by 14,4% from in the second quarter 2024 compared to the corresponding quarter 2023 mainly due to a significant decline in exports to the EU as the Eurozone GDP grew by only 0,3% during the second quarter 2024 with Germany’s GDP contracting by 0,1%; and
  • The naamsa CEOs Confidence Index, as an in-house leading business confidence indicator of current and future developments in the domestic automotive industry, reflects the sentiment expressed by the naamsa CEOs for the second quarter 2024 compared to the second quarter 2023 as well as automotive business conditions and the country’s economy in general for the next 6 months.

Review of Business Conditions

Projection Schedule