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South African Vehicle Exports On Track To Hit Record $9.25B In 2019

South African Vehicle Exports On Track To Hit Record $9.25B In 2019

electric cars vehicle exports
Vehicle exports from South Africa are expected to hit a record $9.25 billion in 2019 with around 388,000 units expected to be shipped this year. Customers look at a new BMW car at the e-Motor show, in Beirut, Lebanon, Thursday, April 11, 2019. (AP Photo/Hussein Malla)

South Africa, the largest vehicle manufacturer on the continent, exported $8.7-billion-worth of product in 2018 and is forecast to improve on those numbers this year.

Vehicle exports from South Africa are expected to fetch a record $9.25 billion in 2019, according to Businesstech.

The country is on track to ship around 388,000 units this year compared to around 351,000 in 2018.

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Auto-manufacturing makes up about 7 percent of South Africa’s economy and employs around 100,000 skilled workers.

While export numbers are positive, domestic new vehicle sales were down 3.5 percent year-to-date due to a sluggish economy. Economic growth has been inconsistent, vehicle prices have increased and unemployment remains at 29 percent.

Vehicle exports on the rise

The increase in vehicle exports from South Africa is due to manufacturers increasing production and producing popular new models in the country.

Export numbers have been boosted by new production and export of small cars and SUVs such as the Volkswagen Polo and the BMW X3 SUV, which are among the most popular vehicles globally, according to EngineeringNews.

Vehicles manufactured in South Africa were shipped to 155 countries in 2018 with manufacturers benefiting from the weakness of the rand.

Seven vehicle manufacturers run factories in the country including Volkswagen, Isuzu, BMW, Mercedes Benz, Ford, Daimler-Chrysler and Toyota.

Almost 19 percent more vehicles were exported in the nine months to September, compared with the previous year, according to data from the National Association of Automobile Manufacturers of South Africa.