Economic growth through export and local demand
The automotive sector is one of South Africa’s most important industries. Almost all leading car manufacturers are represented in the Republic of South Africa and the market is growing continuously. Since 1994 exports grew by nine times representing today 7% of the country’s total exports. The increased local demand by a growing black middle class contributes to the growth in the automotive sector. According to the National Association of Automobile Manufacturers of South Africa (NAAMSA) 715.000 cars had been sold in the last year. In 2005 the number was 617.000.
Motor Industry Development Programme
One of the reasons for the dramatic increase in this sector is Motor Industry Development Programme (MIDP) which has been introduced by the government in 1995. The programme will expire in 2012.
The MIDP pushes the export by giving several benefits to car manufacturers such as rebates for imported parts. With such a measure South Africa increases its competitiveness in order to increase the export quota and its desirability as a location for production.
The demand of car manufacturers for locally produced parts and units, rather than imported ones, increases steadily. This trend will accelerate once the MIDP has expired. Therefore suppliers in the automotive sector have good business opportunities in the near future. The market for car accessories also experiences an increased demand. The boost in sales figures for medium sized vehicles has its immediate effect on the demand for tuning sets, alloy wheels, hi-fi units, mobile phone solutions, etc. A similar development is expected in the maintenance sector with its demand for hoisting platforms, environment- and logistic systems.
upcoming event
Business trip to South Africa in January 2011
The next business trip to South Africa organised by ESA-Meridian takes place from January 22, 2011 until January 28, 2011. Participants get the chance to talk to business leaders, visit companies as weel as infrastructure projects. For further information please send us an e-mail to businesstrip2011@esa-meridian.com
news
ESA-Meridian in Renewable Energy working group
Renewable energy are gaining importance in the local energy mix. The South African government is focussing on solar and wind within its strategic energy planning. Generous feed-in tariffs has already attracted local as well as international investors. The German-South African Chamber of Commerce in Johannesburg has set-up a working group dealing with renewable energies. The working group represents inter alia the interests of the German industry in this important industry segment. ESA-Meridian is an active member of the working group and will report on a regualr basis about the news.
upcoming event
automechanika - 2011 again in South Africa
The automechanika open its doors again from March 9, 2011 until March 12, 2011. After a succesful kick-off in 2009 the fair expects approximately 400 exhibitors on the NASREC premises in Johannesburg. Automecchanika is one of the most important automotive fair worldwide. The event is a cooperation between Messe Frankfurt and South African organisers.