While new vehicle sales in South Africa grew by 31% in February compared with February 2010 sales, the Automotive Industry Development Centre cautions that long-term sustainability will hinge on greater volumes of locally produced cars and the exploitation of new growth opportunities.
These two key themes also comprise the content of a seminar in Port Elizabeth in May which seeks to address measures to grow the automotive sector’s local manufacturing base.
National Association of Automotive and Allied Component Manufacturers of South Africa (NAACAM), Executive Roger Pitot stressed the importance of a robust local manufacturing base that could produce competitive vehicles for the local market.
“The recent KPMG Auto Executive Feedback Report showed a growing consumer need for safe, lower cost vehicles, an area where the emerging markets of Asia and Brazil are the strongest,” Pitot said.
“Indications are that while the South African market will grow, the increase in imported vehicles continues to be a concern, given that 66% of new car sales in 2010 were imports!”
“The program content and speaker line up for the AIDC seminar promises to be thought provoking concerning how to navigate the road ahead,” he said.
AIDC Supply Chain Manager Lance Schultz said several leading experts and strategists had been secured for the seminar, including Brand Pretorius, former MD of McCarthy, Ian Nicholls Vice President Planning of GMSA, futurist Clem Sunter and Ford’s MD Jeffrey Nemeth, among others.
The seminar, “Shifting Foward – Gearing Up!”, is to be hosted at the Radisson Blu Hotel on 5 May 2011 and will include a panel discussion on productivity with representation from unions, industry and HR practitioners. Invited speakers include Brand Pretorius, Clem Sunter Ford MD Jeffrey Nemeth and GMSA VP for Planning Ian Nicholls.
“Compared to 2009 and 2010, the sector is experiencing growth again, but what is of most importance is not short term peaks and troughs but the long term sustainability of this sector. We must not be seduced by short-term gains…this means we need to devise and activate a strategy that will ensure longer term viability,” Schultz said.
The National Association of Automotive Manufacturers of South Africa (NAAMSA) says the current strength in the market reflects strong underlying momentum and it was encouraged that total industry sales for the first two months of 2011 were 21,9% ahead of the corresponding two months in 2010.
Attractive special incentive packages offered by a number of manufacturers/importers during the month of February, 2011 also contributed to the rise in sales volumes, say NAAMSA.
NAAMSA suggests that for 2011, domestic new car sales, are projected to improve by 10% to 15% in volume terms. New commercial vehicle sales, could improve by up to 15%.
For more information on the Automotive Industry Seminar contact Sanjiv Ranchod at AIDC on 041 393 2106.
Alan Straton
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