433369666-The-Case-for-Investing-in-South-Africa

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AUTOMOTIVE INDUSTRY: EXPORT-ORIENTED, INCREASINGLY
INTEGRATED IN GLOBAL VALUE CHAINS
• Supported by world-class export infrastructure, South Africa’s automotive industry, including components
manufacturers, is well integrated into the value and supply chains of global OEMs.
• Exports of motor vehicles, parts and accessories contributed 13.2% to the national merchandise export basket
in 2018.
• The industry exports to more than 150 countries, benefiting from preferential market access such as:
- Duty-free exports into the Southern African Development Community (SADC), a 16-country free trade area
(FTA) with 300-million consumers;
- Duty-free exports into the European Union through the SADC-EU Economic Partnership Agreement; and
- Duty-free exports into the US due to preferential access under the African Growth and Opportunity Act
(AGOA).
Exports of motor vehicles, parts and accessories have grown strongly over the last two and a half decades.
The adoption by the government of export-oriented policies including the MIDP and APDP has been key to this
growth.
400,000
SOUTH AFRICA’S MOTOR VEHICLE EXPORTS (UNITS)
350,000
300,000
250,000
Car Exports
Light Commercial Vehicle Exports
Aggregate Exports
200,000
150,000
100,000
50,000
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Top exports of motor vehicles, parts and accessories, 2018
Source (chart & table): IDC analysis, compiled using NAAMSA and South African Revenue Service data
ZAR
million
% of total SA
merchandise exports
Vehicles for transport of persons (except buses) 81 529 6.5%
Motor vehicles for the transport of goods 46 136 3.7%
Liquid, gas centrifuges, filtering, purifying machine 19 696 1.6%
Parts and accessories for motor vehicles 9 087 0.7%
Parts for internal combustion spark ignition engine 3 845 0.3%
Cargo containers designed for carriage of goods 2 086 0.2%
Trailers and non-mechanically propelled vehicles 1 983 0.2%
Other 3 451 0.3%
Total motor vehicle, parts & accessories exports 167 812 13.5%