Major factors surrounding the viability and profitability of the South African motor industry all showed an improvement in the first quarter of 2010, according to Naamsa’s quarterly review of business conditions for the period.
New investments for the year are projected at R4,624 billion, which is the second highest total in history after the record R6,2 billion in 2006. And well above the figure of R2,4 billion last year, when the industry was in the depths of the economic downturn.
Employment improved by 1 196 jobs during the period, which equated to growth of 4 per cent. The increase in head count is due to additional recruitment at three of the industry’s major employers.
Production capacity utilisation for cars improved to an average of 69,9 per cent from 59,4 per cent a year previously, while light commercial vehicle utilisation was 65,1 per cent, medium commercials at 69,6 per cent and heavy commercial at 74,1 per cent, which were all better than the situation for the same period in 2009.
The Naamsa forecast for vehicle sales in 2010 has been revised upward and the figures are: (2009 figures in parentheses)
Cars 295 000 (258 129)
LCVs 134 500 (118 159)
Medium and heavy trucks and buses 22 000 (18 934)
Total domestic sales 451 500 (395 222)
Built-up vehicle exports are forecast to improve from the 174 947 units shipped last year to 221 000 this year.
