Transnet
South African vehicle exports showed a steep decline year-on-year in October as key European markets face their own domestic headwinds.
The Automotive Business Council said exports sales in October decreased by 17,324 units, or 42.6%, to 23,342 units, compared to the 40,666 vehicles exported in October 2023.
CEO, Mikel Mabasa, said in their latest report that Europe, the domestic automotive industry’s top export region, accounts for three out of every four vehicle exports.
“Growth in the European Union stood at 0.3% after quarter three 2024 with Germany projected to end 2024 with a 0.2% contraction.
“A model change by a major local OEM, stricter emissions regulations in the region as well as an influx of cheaper electric vehicles from China all impacted on vehicle exports to the region in 2024,” Mabasa said.
He noted that an “easing of monetary policy in key export markets could see the vehicle export momentum turn positive again over the medium term”.
On Wednesday the German government urged the European Union and China to reach a compromise a day after Brussels announced extra tariffs of up to 35% on Chinese-made electric cars.
Meanwhile, in the domestic market, October reflected the highest sales month of the year, gaining 5.5%.
Aggregate domestic new vehicle sales in October reflected an increase of 2,506 units, or a gain of 5.5%, from the 45, 418 vehicles sold last October.
New passenger car sales reflected a gain of 14.5%, but export sales fell year on year by 42.6%.
