Attached is a copy of NAAMSA’s quarterly review of business conditions for the South African motor vehicle manufacturing industry during the first quarter of 2024, as submitted to the Director-General, Department of Trade, Industry, and Competition.
The attachment includes industry vehicle sales, export, and import statistics from 2015 to 2023, along with current projections for 2024 and 2025.
Key Features: First Quarter 2024
- Centenary Celebration: 2024 marks the 100th anniversary of vehicle manufacturing in South Africa, commemorating the start of domestic assembly operations with the iconic Model T Ford on January 19, 1924.
- Employment: As of March 31, 2024, aggregate industry employment stood at 33,374, showing a slight decline of 5 jobs compared to the 33,379 headcount at the end of December 2023.
- Vehicle Sales: New vehicle sales in the first quarter of 2024 saw a 5.6% decline compared to the same period in 2023 but a marginal increase of 0.2% compared to the fourth quarter of 2023.
- NEV Sales Surge: Sales of new energy vehicles (NEVs) by 15 industry brands surged by 82.7%, from 1,665 units in Q1 2023 to 3,042 units in Q1 2024.
- Capacity Utilisation: Average industry capacity utilisation levels in Q1 2024 were affected by ongoing supply chain disruptions, including port congestion and production delays. The global semiconductor shortage continued to impact original equipment manufacturers (OEMs) differently.
- Capital Expenditure: Major light vehicle manufacturers invested R5.2 billion in 2023, primarily in new generation model investments.
- Production Market Share: South Africa’s vehicle production market share increased from 0.65% in 2022 to 0.67% in 2023, though its global production ranking remained at 22nd.
- Domestic Production Decline: Domestic vehicle production in Q1 2024 fell by 2.2% compared to Q1 2023, influenced by a constrained domestic market and lower vehicle exports.
- Export Performance: Vehicle exports declined by 3.7% from Q1 2023 to Q1 2024, following a record performance of 399,594 vehicles exported in 2023.
- Business Confidence: The NAAMSA CEOs Confidence Index, an in-house leading indicator of business confidence, reflects the sentiment of NAAMSA CEOs for Q1 2024 compared to Q1 2023, as well as their outlook on automotive business conditions and the national economy over the next six months.
