Automotive Export Manual 2011 PDF

AUTOMOTIVE
South Africa
Export Manual
Produced and compiled by

AIEC
P O Box 40611
Arcadia
0007
Tel: +27 12 323 2980
Fax: +27 12 326 3232
Website: www.aiec.co.za
CONTENTS
Page
Foreword..............................................................................................................................................................................................4
The Automotive Industry Export Council (AIEC)....................................................................................................................5
South Africa the country.............................................................................................................................................................7
South Africa comparative advantages...................................................................................................................................8
The South African automotive industry operating environment................................................................................. 12
Automotive clusters...................................................................................................................................................................... 13
Made in South Africa..................................................................................................................................................................... 15
Automotive industry trade balance........................................................................................................................................ 21
Exports methodology............................................................................................................................................................... 23
Exports to regions.......................................................................................................................................................................... 24
Exports to countries...................................................................................................................................................................... 40
Trade and investment opportunities...................................................................................................................................... 44
Exports of vehicles......................................................................................................................................................................... 47
Automotive components exports........................................................................................................................................ 49
Imports by country of origin...................................................................................................................................................... 64
Imports of vehicles........................................................................................................................................................................ 66
Parts and components imports............................................................................................................................................. 68
Main automotive trading partners.......................................................................................................................................... 70

Types of co-operation................................................................................................................................................................... 74
General information...................................................................................................................................................................... 75
South African automotive industry opportunities and challenges.......................................................................... 76
Key automotive industry addresses........................................................................................................................................ 77
ABBREVIATIONS
AGOA African Growth and Opportunity Act
AIEC
Automotive Industry Export Council
BRICS
Brazil, Russia, India, China and South Africa
CBU
Completely Built Up
CKD
Completely Knocked Down
COMESA
Common Market for Southern and Eastern Africa
CPI
Consumer Price Index
DTI
The Department of Trade and Industry
EAC
East African Community
EU
European Union
GDP
Gross Domestic Product
MERCOSUR
Mercado Comn del Sur - Common Market of South America
MIDP
Motor Industry Development Programme
NAACAM
National Association of Automotive Component and Allied Manufacturers
NAAMSA
National Association of Automobile Manufacturers of South Africa
NAFTA
North American Free Trade Area
OEM
Original Equipment Manufacturer (Vehicle Manufacturer)
PPI
Producer Price Index
SADC
Southern African Development Community
SARS South African Revenue Service
FOREWORD
AUTOMOTIVE EXPORT MANUAL
2011 SOUTH AFRICA
The Automotive Export Manual 2011 South Africa publication represents a follow up and update
of the 2007, 2008, 2009 and 2010 Automotive Export Manual publications produced and compiled
by the Automotive Industry Export Council (AIEC) the key source of automotive trade data to the
industry in South Africa. The 2011 publication represents a detailed guide on the export and import
performance of the South African automotive industry under the Motor Industry Development Programme (MIDP). The aim of the manual is to identify and prioritise the major automotive export destinations, the major countries of origin, the main automotive export trade blocs, the most important
exported and imported automotive components, the top growth markets and products as well as the
impact of the trade arrangements enjoyed by South Africa.
Interesting features in the 2011 publication include the focus on the BRICS countries following South
Africas joining of this significant economic coalition in 2011. India, China and Russia represented
three of the 33 countries to which the South African automotive industrys exports more than doubled
in 2010 compared to 2009. Although the automotive trade balance remains in favour of the other
BRICS countries, trade and investment opportunities for the domestic automotive industry would be
enhanced in the foreseeable future via its exposure being part of the coalition. In view of the priority
focus on Africa for South African automotive exporters the potential opportunities via the proposed
26-country SADC-EAC-COMESA free trade area are also explored.
Following the financial and subsequent economic crisis in 2009, the South African automotive industry recovered well in 2010 in line with improvements in the global automotive industry. The two-speed
global recovery, with the developed countries reflecting mild economic recovery and developing
countries performing strongly, is evident in the automotive trade performance of the South African
automotive industry. As an export-oriented industry dependant on exports in order to obtain viable
volumes, global economic developments have been and will remain an important consideration impacting on the domestic automotive industrys performance.
TExport
he Automotive Industry
Council (AIEC)
The AIEC is operated from the NAAMSA offices in Pretoria and the activities and administration
are coordinated by the AIEC Board. The AIEC Board consists of Mr Roger Pitot (Executive Director NAACAM Chairperson), Mr Nico Vermeulen (Director NAAMSA), Dr Norman Lamprecht
(Executive Manager NAAMSA) as well as two ex-officio members from the Department of Trade
and Industry, Mr Mzwakhe Mbatha and Ms Phindile Skosana.
Mr Roger Pitot
Executive Director
NAACAM
Dr Norman Lamprecht
Executive Manager
NAAMSA
Mr Nico Vermeulen
Director
NAAMSA
Vision
The vision of the AIEC is to ensure improved international competitiveness and, for the automotive
sector as the leading manufacturing sector in South Africa, to upgrade its own export value chain as
well as cross cutting value chains to make a bigger contribution to the economic growth and employment levels of the country.
General
The South African automotive industry enjoys significant advantages compared with many other
exporting countries. Its flexibility in producing short runs, abundance of raw materials combined with
the expertise, advanced technology and established business relationships of parent companies
ensures that the South African industry increasingly adds value to the global strategies of parent
companies. South Africa is also an ideal location for specific R&D, such as technologies for rugged
or tropical conditions. Further advantages include expertise in electronics arising from the defense
industry and metallurgy as a result of the countrys extensive mining and metals know-how.
Both the range, in respect of the diversity of automotive components, and reach, in respect of the
number of destinations of automotive exports, are increasing. The South African domestic market
generally is not large enough to generate sufficient economies of scale for world-class production;
hence, exporting needs to be viewed as a necessary step in the rapid movement towards international competitiveness. Failure to rise to the challenge by finding new markets and products could
result in stagnation of exports. The current global economic environment is dominated by intense
competition for export markets, investment and technology. This makes it important to gain and
maintain access to these markets.
The Automotive Industry Export Council (AIEC) was established at the end of 1999. The purpose
was to provide a cost effective administered central body to assist companies in the automotive
sector that are currently exporting, may be interested in exporting in future, or may become capable
of exporting in future. The end result of the AIEC activities will be to broaden the export base by
bringing in more companies that export directly in their own right or by being suppliers to exporting
companies. In addition, the objective is to increase the value of exports of automotive products.
The AIEC represents the interests of eight motor vehicle exporters/manufacturers, namely BMW,
Ford (incorporating Mazda), General Motors, Mercedes Benz, Nissan, Renault, Toyota and Volkswagen as well as exporters/manufacturers of trucks and buses, and over 400 component suppliers in
South Africa.
Export Councils are the prime delivery vehicles that stimulate export growth and deepen the export
base. This format was initiated by Trade and Investment SA in a number of key sectors, and is also
aimed at assisting Small Medium and Micro Enterprises (SMMEs) and Black Economic Empowerment (BEE) companies to enter the export market successfully.
Customer/Stakeholder Portfolio
The customers and stakeholders of the AIEC are all the domestic automotive industry stakeholders
as well as Dti Head Office, Dti foreign economic representatives, and global players abroad. The
needs of members are primarily twofold, namely: (i) research and information, and (ii) practical assistance with exhibitions and missions. These needs form the basis for the assistance provided.
More information on the Automotive Industry Export Council can be accessed at www.aiec.co.za.
SOUTH AFRICA THE COUNTRY

South Africa is regarded as one of the most sophisticated emerging markets globally. It is the worlds
26th-largest country by population, the 24th-largest by land area, has the 34th-largest labour force,
is the 19th-largest global producer of electricity, has the 18th-biggest road network in the world, and
has the 15th-longest network of railway tracks. The country occupies the southernmost part of the
African continent and shares boundaries with Namibia, Botswana, Zimbabwe, Mozambique, Swaziland and Lesotho. The country has a population of 49,99 million people with 11 official languages,
although English is the most spoken medium to conduct business with. South Africa consists of nine
provinces, namely Western Cape, Eastern Cape, Northern Cape, North West, Free State, KwaZuluNatal, Gauteng, Mpumalanga and Limpopo, each with its own legislature, premier and provincial
members of executive councils. The administrative capital is Pretoria in Gauteng, the legislative
capital is Cape Town in the Western Cape and the judicial capital is Bloemfontein in the Free State.
Key Indicators 2010

2010
GDP
R2 662,8 billion (at current prices)
Automotive industrys contribution to GDP
6,17%
GDP Growth rate
2,8%
GDP per capita
R53 117
CPI (annual average)
4,3%
PPI manufacturing (annual average)
1,9%
Total export value
R584,0 billion
Main export destinations
China, USA, Japan, Germany, UK
Main commodities exported
Gold, bituminous coal, iron ore, platinum, ferro-chromium,

vehicles
Total import value
R585,4 billion
Main countries of origin
China, Germany, USA, Japan, Saudi Arabia
Main commodities imported
Petroleumoils,originalequipmentautomotivecomponents,
aviation spirit, vehicles, telephones for cellular networks
Automotive exports as % of total SA exports
11,9% (R69,5 billion)
Automotive imports as % of total SA imports
17,1% (R100,2 billion)
Source: South African Reserve Bank, Statistics South Africa, South African Revenue Service
South Africa is the economic powerhouse of Africa, leading the continent in industrial output and
mineral production and generating a large proportion of Africas electricity. The country has abundant
natural resources, well-developed financial, legal, communications, energy and transport sectors, a
stock exchange ranked among the top in the world, and a modern infrastructure supporting efficient
distribution of goods throughout the southern African region. Not only is South Africa an important
emerging economy, it is also the gateway to other African markets. Its well-developed road and rail
links provide the platform and infrastructure for ground transportation deep into Africa. The country
plays a significant role in supplying energy, relief aid, transport, communications and investment on
the continent.
SOUTH AFRICA COMPARATIVE ADVANTAGES

South Africa is ideally positioned for easy access to the countries of the Southern African Customs
Union (SACU) and the Southern African Development Community (SADC), which consist of 15
countries with a total population of 200 million. The countrys major strengths include its physical
and economic infrastructures, natural mineral and metal resources, a growing manufacturing and
services sector and potential to develop a strong tourism industry. South Africa is regarded as one
of the most diversified exporters in the world and its increasing trade liberalisation is contributing
significantly to the countrys growth and future prosperity.
The countrys main comparative as well as automotive industrys main competitive advantages include the following:
Infrastructure
South Africa already has one of the best infrastructure and service industries among developing nations, particularly in roads, telecommunication, harbours, banking systems, insurance and shipping.
It is able to function as a hub for commercial traffic emanating from and destined for Europe, Asia,
the Americas as well as the east and west coasts of Africa. With the biggest rail service, the largest
airline and the most developed road infrastructure in Africa, South Africa is also regarded as the
gateway into the continent. Infrastructure development is regarded as vital to lowering the cost of
doing business in South Africa.

Spoornet, a division of Transnet, runs the biggest rail service in Africa, with 20 872 km of line.
Largely electrified, the network extends into neighbouring countries offering a logistical launch
pad into the continent.

South African Airways (SAA) is the largest airline in Africa and as part of the Star Alliance
serves 503 cities and provides maintenance for 47 of the worlds major airlines. OR Thambo
International Airport is the largest air cargo port in Africa.

The countrys banks dominate the financial services sector in Sub-Saharan Africa, holding the
first five positions in regional rankings.

Leader of information and communication technology development in Africa with a telecommunications network that is 99% digital, and includes the latest in fixed-line, wireless and satellite communication. The GSM cellular phone market is the third fastest growing mobile phone
market in the world.
Raw material availability

South Africa has an abundance of raw material availability and is the worlds top ranked producer of
platinum, palladium, rhodium, chrome, manganese, vanadium, vermiculite, ferro-chromium and alumino-silicates. In terms of global reserves and production of minerals, holds 90% of platinum-group
metals, 80% of those of manganese, 73% of chrome, 45% of vanadium and 41% of gold reserves.
Only two strategic minerals namely, crude oil and bauxite, are not available in the country. South
Africa has a high level of technical expertise, comprehensive research and development activities
and boasts world-class primary processing facilities for gold, platinum, carbon steel, stainless steel
and aluminium. Platinum group metals, including platinum, rhodium and palladium, are essential
elements in the catalytic converter, which makes the country a strategic long-term supplier of these
products. South Africa currently supplies in the order of 15% of the global demand for catalytic
converters. The country is also home to over 70% of the worlds chromium, which is an essential
ingredient in the stainless steel used to house the catalyst and produce modern auto exhausts. This
resource base produces in excess of 50% of the worlds ferrochrome and has prompted the development of Columbus Stainless, one of the largest and most modern integrated stainless steel works
in the world.
Emerging market cost advantages

South Africa has a mixed developed and emerging world economy offering cost advantages in many
areas. In terms of the cost of living index, South Africa is ranked as one of the lowest cost countries
in the world to live in. Average labour costs to the employer are also lower than developed nations
and on par with many developing nations.
First world production testing

South Africas unique range of vehicle operating conditions coupled with some sophisticated research and development resources are now recognized around the world for providing low-cost
vehicle testing and development opportunities. Operating conditions include varying and readily accessible climate conditions, altitudes and road surfaces from high-speed circuits, off-tracks, baking
deserts to cold mountains. Accelerated durability testing can be carried out at all times of the year,
all within easy reach of laboratories and testing services available at some of the lowest prices in
the world.
Flexible production capability

The South African automotive industry has retained its capability where single production facilities
manufacture a range of quality products at competitive prices to satisfy the domestic and export
markets. Given this flexibility, South Africa has a unique competitive advantage when it comes to
low volumes, such as the case with lower volume vehicles and niche markets or at model run-out,
compared to other countries where production is set up for long high-production runs.
Government support
The Motor Industry Development Programme (MIDP) was implemented with effect from 1 September, 1995 to reshape the future direction of the South African automotive and associated industries.
The MIDP took account of the international realities facing the motor industry in South Africa, namely,
trade liberalisation, globalisation of markets against the background of rapid technological change,
rising customer expectations and markets which were becoming increasingly demanding and fast
moving in terms of fashions and trends. The MIDP was established to entrench the outward orientation of the industry, thereby restructuring it to achieve international competitiveness, whilst at the
same time maintaining its employment and output contributions to the South African economy.
The new Automotive Production Development Programme (APDP) (to be introduced in 2013), which
aims to double vehicle production to 1,2 million units by 2020 with an associated increase in localisation, will reflect a quantum leap in terms of processes, technologies and the scale on which the
domestic industry currently operates. The APDP would seek to shift the emphasis away from an
export focus to one that emphasises scale in the production of vehicles. In addition the programme
is intended being supportive of the further development of world-class automotive component manufacturing.
The key elements of the APDP from 2013 through 2020 may be shown a follows.
APDP key elements

YEAR
CBU
RATE
CKD
RATE
VEHICLE
ASSEMBLY
ALLOWANCE
(Plant Volume >
50 000 Units)
PRODUCTION
INCENTIVE
ADDITIONAL
INCENTIVE FOR
VULNERABLE
SECTORS
AUTOMOTIVE
INVESTMENT
ALLOWANCE
% OF PROJECT
VALUE OVER 3
YEARS
DISCRETIONARY
ADDITIONAL
INVESTMENT
ALLOWANCE
2013
25%
20%
20%
55%
5%
20%
10%
2014
25%
20%
19%
54%
5%
20%
10%
2015
25%
20%
18%
53%
5%
20%
10%
2016
25%
20%
18%
52%
5%
20%
10%
2017
25%
20%
18%
51%
5%
20%
10%
2018
25%
20%
18%
50%
5%
20%
10%
2019
25%
20%
18%
50%
5%
20%
10%
2020
25%
20%
18%
50%
5%
20%
10%
The four key elements of the Automotive Production and Development Programme (APDP) include
the following:
Automotive Investment Scheme (AIS): Effective from July 2009, this assistance replaces the Productive Asset Allowance and will amount to a cash grant of 20% (taxable) of qualifying investment
paid over to OEMs and component manufacturers over a three year period. In addition, by achieving
certain performance objectives, companies will be able to earn an additional 10%. This support will
be available to encourage investments by OEMs and component manufacturers in a manner that
supports equipment upgrading.
10
Tariffs: Import duties on vehicles and components will be frozen at 2012 levels (25% on light vehicles and 20% on original equipment components) through to 2020. A preferential agreement will
result in imported vehicles from the EU paying only 18% duty. These tariffs are meant to provide just
enough protection to justify continued local vehicle assembly.
Vehicle Assembly Allowance (VAA): This support will be in the form of duty-free import credits issued to vehicle assemblers based on 20% of the ex-factory vehicle price initially, reducing to 18%
of the value of light motor vehicles produced domestically from 2013. The equivalent value of this
to the OEMs will be the allowance multiplied by the duty rate, so 4% in 2013 reducing to 3,6% in
2015. This support is effectively providing a lower duty rate for local vehicle assemblers and should
provide enough encouragement for high volume vehicle production in line with the target of doubling
production.
11
Production Incentive (PI): From 2013 this support will start at 55% reducing progressively to 50%
of value added, also in the form of duty-free import credits, and will replace the current export based
scheme. There will be an additional 5% for vulnerable sectors. The equivalent value will be the incentive multiplied by the component duty rate, so 11% of value added in 2013, reducing to 10% by
2018. Value added had not yet been clarified at publication date, but it has been defined in simple
terms as the manufacturers selling price less input materials. The incentive will flow through the
supply chain to the end producer, which will be the vehicle assembler or, in the case of component
exports or replacement parts, the component manufacturer. The value-add support is planned to
encourage increasing levels of local value addition along the automotive value chain with positive
spin-offs for employment creation.
The full details of the Automotive Production and Development Program (APDP) have not yet been
finalised. This program applies to light vehicles only. Government is presently also examining opportunities for a programme to support future heavy vehicle production.
THE SOUTH
AFRICAN AUTOMOTIVE INDUSTRY
OPERATING ENVIRONMENT
The global automotive industry is a key sector of the economy for every major country in the world.
Manufacturing vehicles requires the employment of about 9 million people directly in producing the
vehicles and the automotive components that go into them. This comprises over 5% of the worlds
total manufacturing employment. Many people are also employed in automotive related manufacturing and services as the sector uses the goods of many industries including steel, iron, aluminium,
glass, plastics, carpeting, textiles, computer chips and rubber, amongst others. It is estimated that
each direct automotive job supports at least another 5 indirect jobs, resulting in more than 50 million
jobs globally owed to the automotive industry.
The global automotive industry structure consists of a supply side (production) and a demand side
(sales). The attempts by the key role-players in the supply-side to meet the needs of the demand
side find expression in the major global trends and developments governing the global automotive
industry. The global automotive industry is experiencing the effects of change in an accelerated
way due to the globalisation of production. The cost-cutting strategies by the OEMs, and as a consequence, their suppliers as well are fundamentally driven by certain strategic underlying major
global trends. Most notably the challenges are induced by market realities and consumer demands,
mergers and acquisitions, global production overcapacity, outsourcing and sourcing strategies, new
technology and innovation, as well as environmental requirements. There is an increasing trend towards environmentally friendly products low emission/zero emission vehicles. These realities have
important implications for the automotive industry, especially in developing countries such as South
Africa. Developing countries, increasingly integrated into the global automotive value chain of global
role-players, not only have to cope and incorporate the direct impact of the major global trends on
their operations, but also have to compete with each other for sourcing and outsourcing opportunities. It is within this fast changing environment that many developing countries, such as South Africa,
are seeking to create for themselves a role as producer of vehicles and automotive components.
When the domestic market is not large enough to absorb the production, the focus is on exports.
Since the implementation of the MIDP in September 1995 the South African automotive sector has
grown in stature to become the leading manufacturing sector in the countrys economy. The sectors
12
contribution to the countrys Gross Domestic Product (GDP) of R2 663 billion in 2010 amounted to
6,2%. A compounded annual growth rate of 20,6% in rand value terms for completely built-up vehicles (CBUs) and automotive components exports has been achieved since 1995, through to 2010.
Total automotive industry exports (CBUs and components) in rand value terms increased nearly
seventeen fold from the R4,2 billion in 1995 to R69,5 billion in 2010. Market acceptance for South
African manufactured CBUs and automotive components is high. A total of 1 860 027 vehicles have
already been exported from South Africa since 1995 up to 2010. The total nominal export value of
vehicles and automotive components over this period amounted to R603 billion. The export growth
has been accommodated by major investments in best practice assets and state-of-the-art equipment, skills upgrading, productivity gains and upgrading of the whole automotive value chain.
The MIDP facilitates the outward orientation of the domestic automotive industry through its various
policy mechanisms. However, the MIDP cannot control the range of external factors impacting on
the business operations of the South African automotive industry and its role-players. These include
global developments, logistics costs, raw material prices, currency movements as well as administrative prices impacting on the cost of doing business in South Africa.
The Automotive Production and Development Programme (APDP), to replace the MIDP from 1 January 2013 onwards, should enable vehicle manufacturers and their suppliers to plan strategically for
the future and to finalise investment decisions with confidence and certainty.
Automotive clusters
South Africas vehicle manufacturing industry is concentrated in three of the countrys nine provinces,
namely Gauteng, the Eastern Cape and KwaZulu-Natal, and in close proximity to its suppliers. However, increasingly some automotive development is also taking place in the Western Cape. The three
automotive clusters and the Western Cape automotive features may be illustrated as follows:
Automotive clusters key features 2010

Automotive clusters
Gauteng
Eastern Cape
KwaZulu-Natal
Western Cape
Johannesburg
Bisho
Msunduzi/
Pietermaritzburg
Cape Town
Population(%ofSAtotal
of 49,99 million)
11,19 million (22,4%)
6,74 million (13,5%)
10,65 million (21,3%)
5,22 million (10,4%)
GDP contribution as %
of SA total GDP of
R2 663 billion
33,5%
7,8%
16,2%
14,5%
Volkswagen of SA
Mercedes-Benz SA
General Motors SA
Toyota SA Motors
Capital
BMW SA
Nissan SA
Renault SA
OEMs (manufacturing
FordMotorCompanyof
plants)
Southern Africa incorporatingtheassemblyof
Mazda
Number of automotive
componentcompanies
164
82
84
20
Motor vehicle parc as %

of SA total vehicle parc
of 9,8 million vehicles
38,8%
6,9%
13,6%
16,2%
13
Passenger car sales as

%oftotal2010NAAMSA
sales
14
35,8%
4,3%
12,2%
11,1%
31,4%
5,0%
12,2%
9,4%
MCV/HCV sales as %
of total 2010 NAAMSA
sales
35,8%
4,7%
14,8%
8,7%
Lightvehicleexportsby
OEMs in the province as
% of total 2010 exports
24,5%
49,0%
26,3%
Richest province in the country

OR Thambo International airport
Automotive Supplier Park
AutomotiveIndustryDevelopment
Centre (AIDC)
Nationalgovernmentdepartments/
Gauteng Economic Development
Agency (Geda)
Ford Engine plant

CoegaIndustrialDevelopmentZone
EastLondonIndustrialDevelopment
Zone
AutomotiveIndustryDevelopment
Centre (AIDC)
EasternCapeDevelopmentAgency
(ECDC)
Countrys second largest provincial

economy
South Africas major port - Durban,
RichardsBayIndustrialDevelopment
Zone
Durban Automotive Cluster (DAC)
DurbanInvestmentPromotionAgency
(DIPA)
Other key features
One of the worlds greatest tourism

attractions
WesternCapeInvestmentandTrade
Promotion Agency (Wesgro)
CentreforAutomotiveEngineering
(US)
LCV sales as % of total

2010 NAAMSA sales
Source: NAAMSA/Response Group Trendline, NAACAM, Statistics South Africa
AFRICA AND SOUTH AFRICA

MADE IN SOUTH AFRICA
The South African automotive industry, as everywhere else in the world, is strongly influenced by the
OEMs. The industrys structure and evolutionary path are therefore closely aligned with OEM strategies in both domestic and global markets. The increasing orientation of OEMs towards exports has
thus fundamentally changed the structure of their own operations as well as those of the automotive
component industry. Key decisions about South Africas automotive business are made in Europe,
the USA and Japan. South Africas participation in the World Trade Organisation (WTO), its competitive advantages and its special relationships with the EU and other trading regions has facilitated the
industrys integration into the global sourcing strategies of the multinational automotive corporations.
Globally, flexibility is considered an essential competitive advantage for fast model changes and for
successful niche marketing, both of which require an ability to use the same platform to produce
low volumes in a particular model derivative. The South African automotive industry has retained its
capability where single production facilities manufacture a range of products at competitive prices to
satisfy the domestic and export markets.
Essentially the essence of the MIDP is to encourage the OEMs in South Africa to specialize in one
or two high volume models on behalf of parent companies, obtain economies of scale benefits via
exports and in turn import those low volume models not manufactured in the country to complement
their domestic model mixes. This approach also assists the component suppliers in obtaining higher
volumes. Consequently the Made in South Africa products include the following:
15
Passenger cars:
BMW
3-Series 4-door
Ford
Focus, Icon
Mazda
Mazda 3
Mercedes Benz
C-Class 4-door
Nissan
Tiida and Livina/Grand Livina
Renault Sandero
Toyota
Corolla 4-door and Fortuner
Volkswagen
Polo new and previous series
16
Light commercial vehicles:

Ford
Bantam and Ranger
Mazda
BT-50
General Motors
Corsa Utility and Isuzu KB
Mercedes Benz
Mitsubishi Triton
Nissan
Hardbody, NP300, NP200
Toyota
Hilux
Production of passenger car and light commercial vehicles 2006 to 2010

PASSENGER CARS
Market
LIGHT COMMERCIAL VEHICLES
Domestic
Exports
Total
Exports as
a % of total
Market
Domestic
Export
Total
Exports as
a % of total
2006
215 311
119 171
334 482
35,6
159 469
60 149
219 618
27,4
2007
169 558
106 460
276 018
38,6
156 626
64 127
220 753
29,0
2008
125 454
195 670
321 124
60,9
118 641
87 314
205 955
42,4
2009
94 379
128 602
222 981
57,7
85 663
45 514
131 177
34,7
2010
113 740
181 654
295 394
61,5
96 823
56 950
153 773
37,0
2011*
130 000
210 000
340 000
61,8
110 000
90 000
200 000
45,0
* projected figures
Source: NAAMSA
In addition to the light vehicles, the following
Medium, heavy and extra heavy commercial vehicle companies are

represented in South Africa:
Babcock
Fiat
Freightliner
Fuso
General Motors
Hino
Isuzu
Iveco
MAN
Mercedes Benz
Navistar International Trucks
Nissan
Peugeot
Powerstar
Renault Trucks
Scania
Tata
Toyota
UD Trucks
Volkswagen
17
Volvo Trucks
18
Buses:
Iveco
MAN
Mercedes Benz
Scania
Tata
VDL Coach & Bus
Volvo
Assembly of medium and heavy commercial vehicles and buses 2006 to 2010
MEDIUM AND HEAVY COMMERCIALS
Market
Exports as a % of total
Domestic
Exports
Total
2006
33 080
539
33 619
1,6
2007
37 069
650
37 719
1,7
2008
34 659
1 227
35 886
3,4
2009
18 934
831
19 765
4,2
2010
22 021
861
22 882
3,8
2011*
25 000
1 000
26 000
3,8
* projected figure
Source: NAAMSA
Range of automotive components manufactured in South Africa

Abrasives
Accessories
Adaptor Plates
Air Bags
Air Brake Systems/Components
Air Ducting
Air conditioning
Alternators
Aluminium
Anchor Pins
Armrests
Audio/Navigational/Multi-MediaSystems
Automotive Carpets
Automotive Fasteners/
Fastening Systems
Automotive Wires & Cables (Electrical)
Axles
Badges/Chevrons/Emblems/Graphics/ Ball Joints

3-D Trim
Batteries
Bearings
Blow Moulded Components
Body-in-White Tooling
Bonding/Adhesive Systems
Brackets
Brakes
Brass Fittings/Components
Bullbars
Bumpers
Bushbars
Bushes Small End
Business Services/Solutions
Cables
Cams
Canopies/Trim Parts/Rubber Seals
Caps
Carpets
Castings and Forgings
Catalytic Converters
Clamps
Clutches
Coatings Specialised/Protective
Cockpit/Module Assemblies
Coils Condenser/Evaporator
Condensers
Connection Rods
Consoles
Control Alarms
CoolingFans/CoolingModuleAssemblies
19
Corrosion Protection
Cotter Tensioners
Covers Seat
Crankshafts
Cylinder Blocks/Heads/Covers
Cylinders
Dashboards/Instrument Panel Braces Decoiling
Deflectors
Die Coating
Differentials
Doors
Drive Shafts & Components
E-Coatings
Electro-Phoretic Painting
Electronics
Emission Control Systems
Engine
Engine Cooling
Engineering Services
Exhausts
Fenders
Fifth Wheels Components
Filters
Filtration Bulk
Fine Blanked Metal Pressings
Flanges
Flywheel/Housings/Assemblies
Foam
Front End/Module Assemblies
Fuel
Gaskets
Gauges Tyre Pressure
Gearboxes
Gears
General/Specialised Engineering
Glass
Glove Boxes
Graphics/3-D Trim
Grilles & Grille Guards
Grommets/Plugs
Handbrakes
Harnesses
Headlamps
Headrests Conventional/Pour-in-Place
Heat Exchangers/Casings
Heat Shields
Hinges
Hooters
Hoses
Hvac Systems
Hydraulic Hose/Fittings
Ignition
Impregnation Solutions
Induction Heaters
Injection Moulded Parts
Instrumentation & Panels
Intake Pies/Ducts
Intake/Inlet Manifolds
J Bolts
Jacks Scissors/Cantilever/Dome
Kingpins/LinkPins/Idler&PitmanArms Knuckles
Leather/Plastic/Vinyl
Licence Disk Holders
Lighting
Liners
Linings
Load bins
Lock bolts
Locking Mechanisms Door/Hood/ Manifolds

Trunk Lid
Marking/Marking Equipment
Mats Various
Metrology 3D Measurement
Mirrors
Motors
Moulded Insulation Components/Panels
MouldingsBodySide/DoorPanel/PU Mud Flaps/Stone Guards
Nudge Bars
Number Plate Holders/Panels
Nuts & Bolts
Oil Coolers
Oil Seals
Oil/Grease/Lubricants
Paint Finishing Systems
Panels
Parcel Shelves/Trays
Pedal Boxes
Pedal Pads
Pipes/Hoses/Pipe Bending/Hose
Clamps/Pipe Assemblies
Pistons & Piston Assemblies
Plastics
Pneumatic Equipment
Porosity Solutions
Post Covers
Powder Coating
Pressed Metal Parts
Profiles
Propshafts/Propshaft Assemblies/
Components
PU Parts Metal Reinforced
Pulleys/Belt Drives/Components
Punching Equipment
Radiators
Radio Mounting Components
Rail blocks
Ratchets
Raw Materials
Reflectors
Rivets/Riveting Tools
Robot Welding Cells
Robotic CO2 Welding
Robotics
Roll Bars/Roll Bar Brackets
Roll Linings/Rail blocks
Roof Rails
Rotors
Rubber
Safety Belts/Components
20
Sealants
Seats
Shackle Pins/Bushes
Shock Absorbers/Gas Lifts
Shrouds
Side Steps/Rear Steps
Sintered Metal Components
Sleeves
Sound Deadeners/Insulators
Spark Plugs/Glow Plugs
Speakers/Housings/Trim
Spindles
Spline Shafts
Spoilers
Springs
Stabilisers/Torsion bars
Stainless Steel
Steel
Steering
Stiffener Plats
Stone Guards
Stone Protection Coatings
Storage & Packaging
Structural Body Components
Struts
Struts & Strut Cartridges
Sun Visors
Surface Finishing De-burring/

De-scaling/Polishing
Suspension Units/Components/
Assembly
Switches
Tailboards
Thermostats
Tie Rods/Tie Rod Ends
Timing Chains/Components
Tool & Die Makers
Tools
Torsion Bars
Tow Bars/Tow Hooks
Towing Accessories
Tube Manufacture
Tyres
Under Shields/Covers
VacuumFormedProducts/Assemblies Valve Guides
Valves/Valve Seat Inserts
Vehicle Security
Ventilation Systems
Vinyl
Washers
Water Pumps/Inlet Manifolds
Welded Assemblies
Wheels
Winches
Window Regulators/Winders
Windscreen Washer Bottles
Wipers Arms/Blades/Linkages
Wiring Harnesses
The table of the major automotive component exports is on p50.
AUTOMOTIVE INDUSTRY TRADE BALANCE

The South African automotive industrys trade deficit has widened to R30,7 billion in 2010 compared
to the R18,9 billion in 2009. The overall picture in respect of the domestic automotive industrys
trade balance under the MIDP reflects that exports have increased very rapidly but that imports have
expanded rapidly as well. Since the introduction of the MIDP, until 2007, automotive component
exports remained the key driver behind the automotive industrys trade balance. In 2008, owing to
the record vehicle exports of 284 211 units, the vehicle export value exceeded the automotive component export value for the first time and this trend continued into 2010.
Despite the significant increase in exports of CBUs and automotive components in recent years,
the South African automotive industry has remained a net user of foreign exchange. This was as
a result of the importation of products not manufactured in the relatively small domestic market.
Capital-intensive components such as engines, gearboxes and interior electronic components are
mainly imported and the remainder sourced in the domestic market. The industrys reliance on global
designs, technologically sophisticated plant and machinery and high-value automotive components
contributes to the large outflow of foreign exchange. In addition, the importation of replacement parts
has increased substantially in recent years to support the increased vehicle imports.
Trade balance for the automotive industry
21
Year
Imports (R billion)
Exports (R billion)
Net forex usage (R billion)
2005
72,5
45,3
(27,2)
2006
88,5
54,7
(33,8)
2007
102,2
67,6
(34,6)
2008
108,9
94,2
(14,7)
2009
79,9
61,0
(18,9)
2010
100,2
69,5
(30,7)
2010
100,2
69,5
(30,7)
EU
50,9
33,1
(17,8)
NAFTA
6,2
16,5
10,3
AFRICA (incl. SADC)
0,1
8,7
8,6
MERCOSUR
3,6
0,9
(2,7)
OTHER
39,4
10,3
(29,1)
2010
100,2
69,5
(30,7)
CBUs
35,0
38,7
3,7
Original equipment components

Aftermarket components
37,9
30,8
(34,4)
27,3
Source: AIEC
A key strategy of the OEMs operating in South Africa is to expand market share. The OEMs seek
22
to achieve this through a combination of domestic production and vehicle imports. The MIDP encourages the OEMs to import low-volume models not manufactured in the country and concentrate
on the production of relatively high-volume models. In rationalising the vehicles and components it
manufactures, to achieve higher volumes from a much smaller range of products, industry also has
to rely on increasing imports to fill the domestic supply gaps.
Currency indices for Rand versus major trading partners

(Foreign currency: Rand annual averages)
Currency
2005
2006
2007
2008
2009
2010
Japan (100 Yen)
5.78
5.82
5.99
8.05
9.02
8.35
Index
100
101
104
139
156
144
Euro
7.91
8.52
9.66
12.05
11.70
9.71
Index
100
108
126
152
148
123
US ($)
6.36
6.77
7.05
8.25
8.44
7.32
Index
100
106
111
130
133
115
Source: South African Reserve Bank

In line with many other developing countries, deviations in the currency of trading partners will consequently impact on domestic operations. The rand has appreciated significantly in 2010 compared
to the Euro and the US dollar. In addition, as automotive tariffs into South Africa are reduced, imports
can be expected to gain a larger share of the domestic market. Nominal tariffs for CBUs and original
equipment components will decline gradually up to 2012.
EXPORTS
23
EXPORTS
EXPORTS METHODOLOGY
The data in the Automotive Export Manual 2011 South Africa publication is processed based
on the detailed Customs and Excise statistics for products eligible under the MIDP, obtained from
the South African Revenue Service (SARS). The Customs and Excise export values reflect free on
board (FOB) values in nominal terms. The export values of the latest year (2010) were used to rank
the countries in order of priority, from the most to the least important export country destination. The
same principle was applied to prioritise the export data regarding regions, vehicles and component
categories. Approximately 211 country export destinations are listed by SARS. For purposes of relevance one million rand (R1 million) was used in the Automotive Export Manual 2011 South
Africa publication as a measure to determine the top 131 South African export country destinations.
For ease of reference and for comparisons the data with respect to the component categories and
for countries, where applicable, were placed in alphabetical order. Percentages were rounded off.
The main purpose of this publication is to discern and highlight export trends, to prioritise export
country destinations, to identify opportunities via potential growth country and region destinations as
well as to identify growth in products exported to specific country destinations. The publication also
serves as a guide to track the export performance of the South African automotive industry under the
MIDP over recent years. Due to certain limitations Customs and Excise statistics cannot always distinguish between automotive components eligible in terms of the MIDP and non-MIDP components
and certain categories, such as automotive tooling, may contain a small percentage of non-MIDP
components.
24
EXPORTS TO REGIONS
Globally, major automotive manufacturing regions include the North American Free Trade Area
(NAFTA), Western Europe, Japan, Asia-Pacific, Eastern Europe, South America and South Africa.
The Triad economies of North America, Europe and Japan comprised 38,7 million or 49,9% of global
vehicle production of 77,6 million in 2010. The demand side for vehicles, which is declining in the
mature Triad markets, is problematic since supply is exceeding demand. Hence, the rush for cost
savings by the OEMs is a priority area. The offensive strategies of a few dominant OEMs to win market share, in an intensely competitive global environment, impact significantly on the developments
of the automotive component suppliers in the supply side. Developing countries and regions, providing lower cost manufacturing and huge growth potential for both the global automotive supply and
demand sides, are increasingly important focus areas. A case in point is the BRIC countries which
are increasing their global market shares as reflected by the vehicle production gains from 2009 to
2010 of 93,5% in the case of Russia, 33,8% in the case of India, 32,4% in the case of China and
14,6% in the case of Brazil.
EUROPEAN UNION
Europe is South Africas most important economic trading partner, accounting for R327 billion or
28% of the countrys total imports and exports of R1 169 billion in 2010. South Africas trade relations
with the EU are governed by the Trade, Development and Co-operation Agreement (TDCA). The
main objective of the TDCA is to create a free-trade area between South Africa and the European
Union (EU) over a 12-year period: it will remove 90% of all trade barriers. The EU and South Africa
will, in terms of the agreement, open their markets to each other at a different pace. The EU-SA Free
Trade Agreement on trade, development and co-operation became effective on 1 January 2000. The
agreement is based on preferential rates of import duties for certain products having been deemed
to originate in the partner country. South Africa will grant duty-free status to 86% of its EU imports,
while the EU will give duty-free status to 95% of South Africas exports.
Initially the EU consisted of just six countries: Belgium, Germany, France, Italy, Luxembourg and
the Netherlands. Denmark, Ireland and the United Kingdom joined in 1973, Greece in 1981, Spain
and Portugal in 1986 and Austria, Finland and Sweden in 1995. In May 2004, the biggest ever enlargement took place with 10 countries joining: Czech Republic, Cyprus, Estonia, Hungary, Latvia,
25
EXPORTS
Cross-border business involves customs duties as just one of the barriers being encountered.
However, a myriad of other compliance and protectionist instruments, such as specific tariffs, antidumping measures, and a plethora of non-tariff barriers for products and different types of company behaviour have arisen as significant and often insurmountable barriers to trade, especially for
developing country firms. In many countries the automotive sector enjoys iconic status but this is
generally only possible behind high tariff and non-tariff barriers. In addition, logistical costs, raw material prices, currency volatility and global developments, amongst others, place further burdens on
delivering products to the market place. Globally, more countries are entering into bilateral and multilateral trade agreements, and, as a result, the challenge for the South African automotive industry is
how to accommodate the MIDP in such agreements without affecting the integrity of the programme.
EXPORTS
Lithuania, Malta, Poland, Slovenia and Slovakia. On 1 January 2007 the EU welcomed its 26th and
27th members, Bulgaria and Romania. Poland, the Czech Republic and Hungary, in particular, are
significant to the automotive sector. The new countries will also be bound by the current free trade
agreement.
The implications, from a South African perspective on the automotive industry, were only finalized
on 15 December 2006 and meant that between 15 December 2006 and 1 January 2008 the EU
would drop all import tariffs on South African-manufactured vehicles and automotive components
and South Africa would return the compliment by applying preferential tariffs. Passenger cars into
the EU normally attract an import duty of 10% while original equipment components an import duty
of 3% and aftermarket automotive parts an import duty of 4,5%. Effectively from 1 January 2000,
when the SA-EU Free Trade agreement was signed, the applied tariffs for automotive components
into the EU were reduced by 50% below normal EU duty rates, which provided South Africa with a
competitive advantage against competing countries. The impact of these preferences is evident in
the component and vehicle export data in respect of the EU. The import duty on automotive components was reduced to duty-free on 15 December 2006 while the 10% import duty on passenger cars
was reduced to 3,5% on 15 December 2006, to 1,5% on 1 January 2007 and fell away completely
in January 2008. South African commercial vehicle exports to the EU were already duty-free and
unaffected by the agreement. In return South Africa is offering a 7% preference to the EU on passenger cars and light commercial vehicles and an 8% preference on medium and heavy commercial
vehicles and buses. Original equipment components will get no preference but a large number of
aftermarket automotive component parts will qualify for lower import duties. In order to qualify for
zero tariffs into the EU, South African vehicles and components must contain at least 60% local
content. The definition of local content includes South African raw materials, labour, parts, transport,
manufacturing costs and profit margins, as well as the value of components and subcomponents
originally sourced from Europe.
In 2010 automotive exports (vehicles and components) to the EU amounted to 47,6% or R33,1 billion
of South Africas total automotive exports of R69,5 billion. Exports to the 12 new member countries
forming part of the expanded EU comprised R2,63 billion or 7,9% of the total R33,1 billion export
value to the EU, compared to the 8,2% or R2,04 billion in 2009. Total automotive exports to the EU
increased by 25,1% or R8,18 billion from 2007 to 2008 but declined substantially by R15,77 billion
or 38,8% from 2008 to 2009, largely due to the decline in catalytic converter exports to the region
coupled with the impact of the global financial crisis and the economic recession experienced in the
Euro zone countries in 2009.
Exports to the European Union (EU) 2006 to 2010
Component
2006
2007
2008
2009
2010
TOTAL (R million)
27 313,1
32 509,1
40 680,5
24 907,9
33 116,4
Air Conditioners
1,1
9,0
0,2
2,7
4,4
Alarm Systems
43,3
54,2
61,3
31,6
41,0
Automotive Tooling
99,5
117,1
144,4
85,0
56,7
Axles
114,1
165,8
164,2
7,2
34,8
Batteries
53,6
49,6
65,9
46,0
20,8
Body Parts / Panels
53,3
59,8
57,8
44,4
28,2
Brake Parts
63,9
89,0
86,2
51,6
31,9
Car Radios
367,6
570,3
1,0
6,5
11,0
13 186,2
16 825,7
20 565,9
10 015,6
11 886,1
53,9
82,8
100,2
119,1
198,0
Clutches / Shaft Couplings
26
Engines
971,3
721,0
363,9
27,3
17,6
Engine Parts
403,1
562,2
1 078,3
746,9
728,1
Filters
95,2
148,5
159,6
186,5
143,0
Gaskets
13,0
31,5
44,9
37,8
31,5
Gauges / Instrument Parts
55,2
65,4
164,8
50,6
38,1
Gear Boxes
47,6
27,0
29,4
31,6
7,0
EXPORTS
27
EXPORTS
Glass
275,8
251,0
278,6
365,0
284,1
Ignition Start Equipment
123,4
157,2
126,4
66,9
35,5
Jacks
11,5
32,4
37,8
66,2
20,4
Lighting Equipment
18,3
72,6
139,9
101,3
137,7
Radiators
88,8
100,9
85,7
61,2
82,2
Road Wheels / Parts
447,7
609,5
624,3
332,5
323,3
Seats
3,4
0,1
0,1
0,2
0,3
Seat belts
17,7
13,3
3,1
1,7
0,5
Seat Part / Leather
2 234,6
2 566,9
3 125,2
2 321,5
2 871,1
Shock Absorbers
1,2
175,1
230,6
296,6
Silencers / Exhaust
610,7
1 391,9
1 562,9
1 077,4
1 415,9
Springs
27,7
27,3
24,6
21,4
21,3
Steering Wheels
26,8
91,9
149,2
123,8
131,0
Transmission Shaft
154,5
291,5
454,1
190,1
159,6
Tyres
544,9
529,2
741,2
496,8
381,3
Wiring Harnesses
196,9
179,1
196,8
76,2
40,4
Other Components
1 482,8
1 876,3
1 508,3
1 046,7
1 121,2
Light Vehicles
5 393,8
4 719,6
7 939,4
6 806,8
12 446,2
31,9
18,3
419,8
31,2
69,6
Medium / Heavy Vehicles
Source: AIEC, SARS
TOP EXPORT
DESTINATIONS IN THE EU WITH
EXPORT VALUE 2010
28
N
AFTA
(NORTH AMERICAN FREE TRADE AREA)
The North American Free Trade Area consists of the USA, Canada and Mexico. The USA had become South Africas largest automotive export destination in 2008 and 2009 but was surpassed
by Germany in 2010. South Africa is a beneficiary of the USAs Generalised System of Preference
(GSP), which was instituted on 1 January 1976 and grants duty-free status to some goods. Since
2001 trade with the USA has been significantly enhanced by the African Growth and Opportunity
Act (AGOA), which was an extension of the GSP and allows duty-free access of additional products
into the USA. The African Growth and Opportunity Act (AGOA) represents a non-reciprocal gesture
by the USA aimed at liberalizing trade and assisting the growth and development of sub-Saharan
African countries by extending duty free and quota free access into the USA market in respect of a
broad range of products. The effective commencement date of the duty free access provisions in
terms of AGOA was 1 January 2001 until 30 September 2008, which was subsequently extended
until 30 September 2015.
Exports to NAFTA increased by 2,7% to R16,50 billion in 2010 from the R16,07 billion in 2009.
Following the significant 107,5% increase in exports from 2007 to 2008, mainly due to the 272%
increase in exports of the new generation BMW 3-series as well as the new generation Mercedes
Benz C-Class, exports declined from 2008 to 2009 by 12,2% due to the impact of the global financial
crisis and subsequent economic recession in the USA.
Exports to NAFTA 2006 to 2010

Component
2006
2007
2008
2009
2010
TOTAL (R million)
6 170,4
8 820,6
18 304,3
16 070,0
16 496,0
Air Conditioners
0,6
0,1
1,3
Alarm Systems
10,7
7,0
4,8
2,7
2,6
Automotive Tooling
26,3
62,5
40,7
41,7
38,1
Axles
232,2
67,7
144,2
19,6
41,6
Body Parts / Panels
39,8
7,8
12,8
4,0
1,2
Brake Parts
6,3
2,5
0,8
0,2
1,0
29
EXPORTS
The cornerstone of AGOA is the expansion of development and trade with Africa, providing diverse
opportunities to grow and integrate the continent into the global economy. South Africa, together
with 36 other African countries, had been designated as eligible countries in terms of the Act. AGOA
builds on existing USA trade programmes and extends the 4 650 products previously only available
under the Generalized System of Preferences programme (GSP) by an additional 1 835 items. Of
the order of 98% of traded products currently qualify for duty-free access into the USA market. Various automotive components and, importantly, motor cars as well as motor vehicles for the transportation of persons and of goods will qualify for a duty free and quota free access into the USA. Duty
rates into the USA normally range from 2,5% to 25% in respect of various types of vehicles. The
elimination of tariffs enhances South Africas potential to compete against the same products not
accorded similar tariff benefits in the relevant countries. The degree of the competitive edge derived
would be expected to be directly related to the level of tariffs facing all other countries not enjoying
the same preference; thus, the higher the tariff the higher the competitive boost.
Car Radios
0,1
0,4
0,1
1 350,7
3 313,4
2 182,6
1 432,7
1 810,6
7,8
10,6
12,1
8,6
10,3
Engines
39,3
40,0
2,3
3,5
2,1
Engine Parts
253,0
136,1
310,0
345,8
370,8
Filters
16,4
30,5
35,3
18,9
37,5
EXPORTS
30
0,5
1,0
3,2
1,8
2,1
26,1
22,4
29,7
21,1
17,9
Gear Boxes
40,8
21,1
20,3
5,7
25,3
Glass
26,2
21,2
12,0
9,3
3,8
1,7
2,1
23,0
1,5
3,7
15,3
33,0
18,8
28,8
Lighting Equipment
23,5
61,5
60,0
22,5
37,4
Radiators
180,7
107,4
83,5
51,3
60,3
Road Wheels / Parts
192,3
85,6
14,0
5,0
3,5
Seats
1,0
3,7
2,0
0,6
0,2
Seat belts
1,0
0,9
0,4
0,1
0,1
Seat Part / Leather
163,8
128,7
113,1
28,6
15,4
Shock Absorbers
0,1
0,8
3,7
1,4
174,5
158,2
187,7
95,3
178,4
2,0
0,1
2,3
0,2
Steering Wheels
20,2
38,6
115,6
31,6
21,9
Transmission Shaft
17,6
10,4
19,2
13,8
8,9
Tyres
130,0
73,1
143,3
54,9
27,0
Wiring Harnesses
1,6
2,0
0,8
1,6
2,6
Other Components
375,3
473,5
164,2
487,2
248,0
2 810,4
3 895,9
14 488,0
13 335,6
13 454,9
17,3
44,7
37,1
Jacks
Silencers / Exhaust
Springs
Light Vehicles
Source: AIEC, SARS
31
EXPORTS
Gaskets
EXPORTS
TOPWITH
EXPORT DESTINATIONS IN NAFTA
EXPORT VALUE 2010
AFRICA
South Africas global economic strategy can be viewed through the lens of an economically reinvigorated Africa part of the goal of the New Partnership for Africas Development (Nepad). As a result, trade relations with African states are politically important, and of growing economic importance
to South Africa. The vision of Nepad is for a self-reliant, innovative and enterprising Africa by way
of building export capacity for African companies, attracting new investments from around the world
and growing inter-African trade to facilitate faster economic growth on the African continent. South
Africa, as the economic powerhouse of the continent, needs to play a major role in this regard. South
Africas democracy is underpinned by principles such as certainty, transformation, a market-oriented
economy and entrenched property rights that create a sound environment for economic growth. The
country is currently reaping the rewards of a decade of disciplined monetary and fiscal policies, with
an economic growth rate moving to sustainable higher levels.
South Africa represented the biggest domestic market for vehicles in Africa and accounted for 79,9%
of the continents vehicle production in 2010. Africa remained South Africas main export region for
commercial vehicles after 1995, while it was also the main destination for exports of South African
manufactured passenger cars and light commercial vehicles between 1995 and 1997, during the
period when the industry had to adjust structurally under the MIDP. Due to the limited levels of vehicle production on the rest of the continent, a diverse range of automotive components is exported
by South Africa to the majority of countries in Africa but the bulk of exports consist of aftermarket
replacement parts.
Exports, mainly due to light vehicle exports to Algeria and Nigeria as part of Toyotas Innovative
Multipurpose Vehicle programme focusing on Europe and Africa, increased by 114,4% from 2007
to 2008 but declined by 21,1% from 2008 to 2009 due to the impact of the global financial crisis on
markets on the continent. From 2009 to 2010 exports declined further by R1,36 billion or 13,5% from
the R10,08 billion in 2009 to R8,72 billion in 2010 mainly due to a decline in vehicle exports to Algeria
and Nigeria.
Exports to Africa 2006 to 2010

Component
2006
2007
2008
2009
2010
TOTAL (R million)
5 402,6
6 929,2
12 100,7
10 082,2
8 719,2
Air Conditioners
8,4
12,1
19,6
11,4
10,7
Alarm Systems
17,3
31,0
15,9
13,2
22,3
Automotive Tooling
66,3
220,2
97,9
107,7
88,5
32
Axles
14,2
17,7
20,8
31,2
13,7
Batteries
29,1
59,1
92,0
119,4
94,3
Body Parts / Panels
17,8
58,6
45,3
16,9
26,2
Brake Parts
32,5
25,7
28,0
40,3
49,1
EXPORTS
33
EXPORTS
Car Radios
5,4
13,0
11,4
7,8
8,6
16,7
39,9
30,0
27,8
29,2
11,3
14,1
14,3
18,3
16,2
Engines
38,6
57,7
78,9
78,6
97,8
Engine Parts
127,9
211,5
205,7
245,5
181,2
Filters
54,7
69,3
81,7
94,8
99,1
Gaskets
27,8
41,1
41,7
35,5
35,0
74,8
136,9
217,0
147,8
126,1
Gear Boxes
12,5
12,8
17,4
17,0
16,7
Glass
7,1
7,0
10,8
12,9
10,8
34,2
48,7
65,1
48,1
37,1
Jacks
3,0
7,7
10,3
7,8
7,8
Lighting Equipment
14,3
22,9
52,1
18,7
22,7
Radiators
3,7
10,7
8,5
13,4
14,0
Road Wheels / Parts
10,7
34,0
25,2
24,7
21,0
Seats
1,1
1,9
3,4
2,5
2,9
Seat belts
0,7
0,7
0,7
0,8
1,2
Seat Part / Leather
1,7
3,6
3,7
3,4
3,4
Shock Absorbers
1,4
8,3
9,6
17,4
19,3
Silencers / Exhaust
2,7
7,2
6,5
6,4
6,4
Springs
2,3
2,7
3,0
2,2
2,2
Steering Wheels
2,7
15,3
6,6
7,1
7,3
Transmission Shaft
49,2
78,6
179,1
159,8
172,6
Tyres
367,4
593,1
596,8
615,4
583,4
Wiring Harnesses
3,4
5,0
5,3
5,9
2,9
Other Components
769,7
949,3
1 191,3
1 395,5
1 496,8
3 257,0
3 596,5
7 711,1
5 855,9
4 627,5
315,0
515,3
1 194,0
871,1
765,2
Light Vehicles
Source: AIEC, SARS
TOP EXPORT DESTINATIONS IN AFRICA
34
WITH EXPORT VALUE 2010
SOUTHERN
AFRICAN DEVELOPMENT
COMMUNITY (SADC)
South Africas participation in the Southern African Development Community (SADC), comprising 15
sub-Saharan African countries, allows access to a market of approximately 200 000 million people.
SADC operates as a Free Trade Area. The 15 SADC countries include Angola, Botswana, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. South Africa joined the SADC
in August 1994. The SADC Trade Protocol was signed in 1996 and implemented in 2000, aimed at
progressively establishing a SADC free trade agreement by 2008. To date all signatories, except for
Zimbabwe, have translated their commitments into domestic enabling legislation. Angola has not yet
made an offer or implemented the SADC Trade Protocol while the Democratic Republic of Congo
and Seychelles, even though members of SADC, are not party to the SADC Trade Protocol.
In 2010, automotive exports (vehicles and components) to the SADC amounted to nearly R4,91 billion and comprised 7,1% of South Africas total automotive exports of R69,5 billion. Several SADC
countries have consistently remained as the South African automotive industrys key export destinations since 1995. The SADC remained the main export region for the countrys commercial vehicles
over the past decade as well as a major destination for passenger cars and automotive components,
especially during the 1990s when license agreements restricted multinational exports to sub-Saharan Africa. Since no vehicles are produced in the SADC region, except for South Africa, a wide range
of automotive components is exported from South Africa to all these countries but the bulk of exports
consist of aftermarket replacement parts.
Exports to South African Development Community (SADC) 2006 to 2010

Component
2006
2007
2008
2009
2010
35
EXPORTS
The intention is that the agreement encourages economies of scale, creating competitive SADCwide industries and thereby increasing intra-regional trade and enhancing foreign investment in the
region. Given the high level of competition for foreign direct investment among emerging markets,
South Africa has placed greater importance on forming strong economic trading blocs to gain access
to key markets. The SADC agreement consists of general objectives rather than specific obligations.
The key policy objective is to strengthen trade and development linkages between South Africa and
other SADC countries. By 2012 about 98% of SADC merchandise trade will be subject to zero tariffs.
The phase-down offers are country-specific on the principle of reciprocity, for example, tariff preferences will be extended only to member states that have submitted their instruments of implementation. South Africa has bilateral agreements with Malawi, Mozambique and Zimbabwe, which were
concluded in the past. These agreements are not very comprehensive and will remain in place until
the SADC tariff preference supersedes those of the bilateral agreements.
2 784,6
3 863,0
6 066,5
5 100,3
4 907,1
Air Conditioners
4,4
4,7
18,3
10,5
3,9
Alarm Systems
11,6
14,1
9,8
10,1
12,3
Automotive Tooling
36,6
160,2
56,2
71,7
44,9
Axles
13,0
14,1
19,2
28,2
12,9
EXPORTS
TOTAL (R million)
36
27,5
50,3
87,4
118,2
92,9
Body Parts / Panels
16,4
49,4
44,1
15,2
21,9
Brake Parts
24,9
25,7
20,1
26,8
24,5
Car Radios
3,9
9,6
9,0
6,0
7,1
13,1
18,7
20,4
12,9
18,4
10,0
11,9
12,9
15,2
14,1
Engines
34,7
50,1
72,3
74,1
86,2
Engine Parts
98,5
137,1
151,7
198,2
157,3
Filters
45,4
52,1
64,2
75,6
88,9
Gaskets
22,2
27,7
35,4
27,4
29,4
48,5
73,5
134,4
87,4
83,8
Gear Boxes
12,1
10,3
16,1
14,2
14,2
Glass
5,7
5,4
8,4
9,7
8,9
29,0
27,1
53,0
39,3
33,4
Jacks
2,2
5,9
8,5
7,0
6,1
Lighting Equipment
11,7
10,3
39,9
13,2
19,4
Radiators
3,2
7,5
6,5
11,4
11,7
Road Wheels / Parts
10,0
31,6
19,7
22,6
19,8
Seats
1,0
1,3
2,4
2,0
2,5
Seat belts
0,7
0,6
0,6
0,6
1,0
Seat Part / Leather
1,6
3,0
3,0
2,6
3,3
Shock Absorbers
1,4
6,7
9,3
15,1
17,8
Silencers / Exhaust
2,3
7,0
5,6
6,0
5,2
Springs
1,8
2,1
2,8
1,7
1,8
Steering Wheels
2,5
5,1
5,8
5,9
5,6
Transmission Shaft
20,4
73,3
117,3
101,2
111,9
EXPORTS
Batteries
37
Tyres
237,3
322,9
443,7
440,5
432,5
Wiring Harnesses
3,1
2,8
4,5
5,1
2,2
Other Components
566,0
766,6
915,1
1 121,5
1 206,8
1 174,2
1 495,8
2 525,3
1 725,6
1 561,8
287,7
378,5
1 123,6
777,6
742,7
Light Vehicles
Source: AIEC, SARS
TOPWITH
EXPORT DESTINATIONS IN SADC
EXPORT VALUE 2010
EXPORTS
M
ERCOSUR
(MERCADO COMN DEL SUR -
COMMON MARKET OF SOUTH AMERICA)

Mercosur was created by Argentina, Brazil, Paraguay and Uruguay in 2001, with Mexico and Venezuela recently being accepted, to join Bolivia and Chile as associate members. The commercial free
trade agreement negotiations between Mercosur and South Africa began formally with the signing of
a Framework Agreement in December 2000. Until December 2002 the parties opted to negotiate an
Agreement on Fixed Tariff Preferences as an intermediate stage towards the free trade agreement.
Since June 2003 the negotiations were expanded to include the other countries under the Southern
African Customs Union (SACU). A preferential trade agreement (PTA) between SACU and Mercosur
was signed in December 2004. The aim of the agreement was to strengthen existing relations, promote the expansion of trade, and establish the conditions for the creation of a free trade agreement
between Mercosur and SACU. The previously concluded Framework Agreement for the Creation of
a Free Trade Area between Mercosur and the Republic of South Africa provides for actions aimed at
increasing trade, including the mutual granting of tariff preferences. The understanding also makes
provision for, among others, additional protocols on the automotive sector and customs cooperation,
as well as further negotiations to broaden and deepen the Agreement, including further exchanges of
trade preferences. Negotiations may involve the granting and winning of tariff concessions in respect
of automotive products.
Trade with Mercosur is relatively small in the context of South Africas overall trade regime and in
respect of automotive exports (vehicles and components) comprised only R945,7 million or 1,4% of
South Africas total automotive exports of R69,5 billion in 2010. The bulk of exports was destined for
Brazil and consisted of a limited range of products.
38
Exports to Mercosur 2006 to 2010

Component
2006
2007
2008
2009
2010
TOTAL (R million)
275,1
422,1
785,9
746,1
945,7
Air conditioners
0,7
EXPORTS
39
EXPORTS
Alarm Systems
0,1
0,1
0,1
Automotive Tooling
7,4
3,3
6,1
116,9
2,9
Axles
0,1
0,9
0,4
0,4
0,1
2,8
1,5
Brake Parts
0,5
0,2
1,4
0,6
Car Radios
0,2
11,2
23,9
30,9
3,8
13,5
0,2
1,9
35,3
Engines
89,2
175,8
510,0
362,2
603,8
Engine Parts
70,1
65,8
98,8
120,6
82,8
Filters
1,3
1,3
2,3
2,9
2,2
0,1
1,3
1,1
2,3
5,6
5,6
8,2
5,5
3,3
4,3
0,3
0,7
1,7
1,4
1,1
0,7
Ignition/Starting Equipment
0,9
Jacks
0,3
0,3
0,2
Lighting Equipment
0,2
0,1
0,1
3,8
Radiators
1,3
1,1
3,0
0,6
Road Wheels / Parts
13,8
21,1
0,1
Seat Part / Leather
0,6
0,4
0,2
0,3
Seats
0,1
Shock Absorbers
1,5
13,7
23,8
25,0
14,5
12,1
6,3
2,3
6,3
Transmission Shaft
42,1
62,2
58,0
28,5
35,3
Tyres
2,2
2,7
15,0
39,6
90,5
Wiring Harnesses
0,5
0,4
0,7
0,2
Other Components
14,1
19,8
9,7
37,1
47,5
Light Vehicles
1,4
4,9
3,3
1,7
0,5
0,2
1,7
0,6
0,8
Body Parts / Panels
Gaskets
Gear Boxes
Glass
Silencers / Exhaust
Steering Wheels
Source: AIEC, SARS
TOP EXPORT
DESTINATIONS IN MERCOSUR
WITH EXPORT VALUE 2010
40
EXPORTS TO COUNTRIES
The reach in respect of the number of destinations of exports from South Africa is increasing. The
number of export destinations for values in excess of R1 million has increased from 62 in 1995 to
131 in 2010. Twelve countries recorded an export value in excess of R1 billion in 2010, while 54
countries recorded an export value in excess of R100 million. The main destinations for South African automotive products remain first-world markets; however, diversification into new emerging
markets is a continuing trend and underlines the automotive industrys competitiveness drive and a
widening of the countrys traditional trading base. New trade and business links in Africa, Asia, the
Middle East, South America and, importantly, the new emerging automotive giants, China and India,
are being forged.
For conversion to other currencies, please refer to the currency table on page p22.
Export value and ranking by country 2010 vs 2009

2010 Ranking
2010 R million
2009 Ranking
2009 R million
Germany
R19 521,9
R13 444,8
USA
R15 718,2
R15 000,8
Japan
R3 424,0
R3 099,7
Australia
R2 992,6
R2 687,3
United Kingdom
R2 677,5
R2 231,5
Spain
R2 349,1
R1 965,1
France
R1 736,2
R1 770,9
Poland
R1 474,7
10
R1 427,7
Belgium
R1 394,1
R1 454,4
Zimbabwe
R1 258,3
10
12
R1 172,5
Mozambique
R1 184,7
11
13
R1 029,1
Algeria
R1 047,1
12
R1 719,3
EXPORTS
Country
12 COUNTRIES ABOVE R1 BILLION

Zambia
R982,2
13
14
R955,0
Brazil
R875,6
14
18
R588,8
Nigeria
R830,9
15
11
R1 329,8
Korea Rep South
R784,2
16
22
R421,7
Netherlands
R693,7
17
17
R610,5
Sweden
R651,2
18
28
R352,4
41
EXPORTS
Czech Republic
R632,1
19
23
R417,0
Canada
R493,3
20
16
R679,2
Dem Rep of Congo
R396,0
21
32
R283,9
Kenya
R386,1
22
24
R396,4
India
R360,8
23
41
R119,4
Ghana
R358,7
24
21
R433,3
Malawi
R331,5
25
20
R443,2
Turkey
R323,8
26
19
R492,0
Italy
R320,4
27
29
R331,7
Mexico
R298,7
28
40
R126,8
Taiwan
R284,9
29
39
R142,7
Angola
R272,0
30
15
R703,4
Hungary
R262,0
31
46
R104,3
Finland
R244,2
32
36
R151,4
Switzerland
R241,4
33
64
R40,8
Tanzania
R240,6
34
26
R366,3
Portugal
R238,3
35
30
R308,8
China
R232,0
36
52
R69,8
Singapore
R221,8
37
31
R288,3
Ireland
R197,9
38
43
R112,5
Egypt
R189,0
39
25
R381,1
Hong Kong, China
R187,9
40
34
R171,2
Austria
R178,0
41
37
R146,2
Afghanistan
R166,7
42
112
R3,7
UAE
R163,2
43
27
R356,6
Estonia
R150,8
44
82
R18,6
Mauritius
R143,4
45
42
R117,1
Greece
R135,0
46
59
R49,5
New Zealand
R126,1
47
53
R69,7
Uganda
R122,4
48
48
R97,7
Malaysia
R118,3
49
70
R32,2
Gibraltar
R116,4
50
50
R85,8
Gabon
R113,0
51
45
R108,7
Venezuela
R112,2
52
38
R143,1
Ethiopia
R110,3
53
56
R59,4
Norway
R103,2
54
51
R81,4
54 COUNTRIES ABOVE R100 MILLION

Romania
R90,6
55
65
R37,9
Madagascar
R82,4
56
49
R87,3
42
R73,1
57
111
R4,0
Morocco
R57,2
58
35
R157,1
Seychelles
R51,8
59
55
R62,8
Pakistan
R50,7
60
69
R33,3
Ivory Coast
R50,0
61
61
R44,4
Mali
R49,9
62
63
R43,7
Thailand
R47,0
63
44
R112,1
Russian Federation
R42,8
64
89
R13,2
Luxembourg
R41,2
65
R0,2
Saudi Arabia
R37,8
66
54
R63,4
Azerbaijan
R36,7
67
Mauritania
R34,6
68
66
R37,3
Tunisia
R31,2
69
77
R24,7
Djibouti
R30,6
70
74
R26,7
Reunion
R30,5
71
80
R21,6
Guadeloupe
R28,3
72
84
R16,8
Rwanda
R28,0
73
60
R48,9
Philippines
R27,1
74
92
R11,5
Senegal
R26,1
75
62
R43,9
Qatar
R25,3
76
71
R31,5
Rep of Congo
R25,3
77
78
R23,7
Cameroon
R22,8
78
87
R14,6
Guinea
R22,1
79
73
R28,4
Liberia
R21,8
80
68
R34,4
Argentina
R21,7
81
57
R54,8
Sierra Leone
R21,5
82
96
R8,4
Martinique
R20,9
83
86
R15,5
Sudan
R20,2
84
58
R53,2
Eritrea
R20,1
85
99
R8,0
Iraq
R18,2
86
33
R245,2
Denmark
R14,3
87
105
R5,6
Burkina Faso
R14,0
88
67
R35,1
Chile
R13,0
89
47
R100,3
French Guiana
R12,8
90
83
R17,5
Cyprus
R10,9
91
R0,9
Somalia
R9,7
92
91
R11,5
Oman
R9,4
93
94
R10,5
Kuwait
R9,4
94
76
R25,3
Burundi
R9,2
95
95
R8,4
EXPORTS
Peru
43
EXPORTS
Benin
R8,6
96
85
R15,7
Central African Rep
R8,5
97
106
R5,6
Israel
R8,0
98
90
R12,2
Jordan
R7,2
99
116
R2,8
Mongolia
R7,0
100
Lebanon
R6,9
101
97
R8,1
Trinidad & Tobago
R6,3
102
100
R7,9
Libya
R5,4
103
121
R1,5
Iran
R4,6
104
101
R6,4
Colombia
R4,6
105
79
R22,5
Slovenia
R4,4
106
75
R25,5
Haiti
R4,2
107
115
R3,0
Syrian Arab Rep
R3,6
108
109
R4,2
Iceland
R3,5
109
R0,6
Georgia
R3,4
110
120
R1,7
Togo
R3,4
111
R0,2
Equatorial Guinea
R3,3
112
123
R1,2
Indonesia
R3,0
113
107
R4,9
Mayotte
R2,8
114
124
R1,1
Chad
R2,7
115
81
R19,6
Bulgaria
R2,5
116
R0,2
Jamaica
R2,4
117
118
R2,0
Comoros
R2,3
118
117
R2,6
Guatemala
R2,2
119
Barbados
R2,1
120
122
R1,5
Niger
R2,1
121
103
R6,3
Ukraine
R2,0
122
R0,2
Kazakhstan
R2,0
123
102
R6,4
Guyana
R1,8
124
R0,3
Ecuador
R1,6
125
114
R3,1
Cambodia
R1,5
126
R0,2
Papa New Guinea
R1,4
127
R0,4
Slovak Republic
R1,4
128
104
R5,7
Sri Lanka
R1,3
129
125
R1,0
Gambia
R1,2
130
98
R8,0
Yemen
R1,1
131
72
R30,5
Source: AIEC, SARS
44
From 2009 to 2010 the export values more than doubled to 33 countries, which include: India, Mexico, Hungary, Switzerland, China, Afghanistan, Estonia, Greece, Malaysia, Romania, Peru, Russia,
Luxembourg, Azerbaijan, Philippines, Sierra Leone, Eritrea, Denmark, Cyprus, Jordan, Mongolia,
Libya, Iceland, Georgia, Togo, Equatorial Guinea, Mayotte, Bulgaria, Guatemala, Ukraine, Guyana,
Cambodia and Papa New Guinea.
TRADE AND INVESTMENT OPPORTUNITIES

South Africas international stature is increasingly recognised and as a result trade and investment
opportunities for the countrys economy in general and its automotive sector in particular are emerging.
BRIC countries
South Africa has formally joined the economic coalition that includes Brazil, Russia, India and China
(BRIC) in 2011 to become a full member of a new emerging markets bloc dubbed BRICS Brazil,
Russia, India, China and South Africa. As forecasts go, China is now expected to overtake the USA
to become the worlds biggest economy by 2030, after surpassing second-biggest Japan in 2010.
Currently India is the worlds fourth-largest economy, ahead of Germany, while Russia is in sixth
place, followed by Brazil. South Africa is ranked 25th, behind Thailand, according to the International
Monetary Fund 2010 rankings. South Africa joining is an affirmation of its role in the world economy.
Automotive trade balance and ratio 2010 imports vs exports

Country
2010 imports
R million
2010 exports
R million
China
R5 151,7
R232,0
Ratio
22,2
India
R3 069,6
R360,8
Ratio
8,5
Brazil
R3 145,7
R875,6
Ratio
3,6
Russia
R2,5
R42,8
Ratio
0,06
45
EXPORTS
China, with 18,6 million units was the top vehicle producing country in 2010 with Brazil 6th, India 7th
and Russia 14th. China, India and Russia were amongst the 33 countries to which South African
automotive exports more than doubled from 2009 to 2010. The automotive trade balance, however,
remains in favour of these countries, except for Russia, and in 2010 the automotive import to export
value ratio was 22 to 1 in favour of China, 8,5 to 1 in favour of India and 3,6 to 1 in favour of Brazil.
South Africas increasing exposure as being part of the group as well as the current preferential trade
negotiations between South Africa and India could enhance trade and investment opportunities for
the domestic automotive industry.
EXPORTS
Source: AIEC, SARS
SADC EAC COMESA Tripartite Alliance

The membership of the three regional economic communities SADC, East African Community (EAC)
and the Common Market for Eastern and Southern Africa (COMESA) has initiated a process to establish a 26-country free trade area. The EAC currently operates as a customs union. In practise
COMESA is still a free trade area, but it is currently phasing in its common external tariff with a view
to achieve a customs union by 2012. SADC operates as a free trade area. It, however, includes the
Southern African Customs Union (SACU) which is a customs union, though. The three Regional
Economic Communities comprise 26 countries with a combined population of 527 million people, a
combined gross domestic product of US$624 billion, a GDP per capita averaging US$1 184 and account for half of the African Union in terms of membership, just over 58% in terms of a contribution
to GDP and 57% of the total population of the African Union.
South Africa is of the view that the best approach to regional integration is to build on existing regional integration communities and build deeper and wider FTAs in a practical manner. This is the
basis for prioritising the consolidation of the FTA in SADC and the need to explore what it means
to achieve broader African FTAs, the immediate priority being the Tripartite FTA. As far as potential
opportunities for the South African automotive industry are concerned, South Africa produced 79,9%
of Africas vehicle production in 2010. Vehicle and automotive component exports to the three individual Regional Economic Communities in 2010 amounted to R4,91 billion in respect of SADC,
R786 million in respect of the EAC and R4,17 billion in respect of COMESA. Harmonisation of trade
regimes, increased market liberalisation and various other areas of cooperation could present the
South African automotive industry with increased export opportunities.
The current membership of the three Regional Economic Communities (RECs) is summarised in
the following table. The countries in italic font are the ones to which South Africa does not yet have
preferential access.
Membership of the three Regional Economic Communities

COUNTRY
Angola
Botswana
DRC
Lesotho
Madagascar
Malawi
Mauritius
Mozambique
Namibia
Seychelles
South Africa
Swaziland
Tanzania
Zambia
Zimbabwe
Burundi
Kenya
Rwanda
46
SADC
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
EAC
COMESA
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Uganda
Comoros
Djibouti
Egypt
Eritrea
Ethiopia
Libya
Sudan
x
x
x
x
x
x
x
x
Potential SACU India preferential trade agreement (PTA)
Already in 2002 the South African and Indian governments agreed to initiate negotiations to conclude
a preferential trade agreement (PTA) to strengthen bilateral trade and investment. This agreement is
proposed to cut tariffs on a limited number of products between the two regions. The long-discussed
topic has finally resulted in the exchange of offensive lists between the SACU and Indian governments in 2011. Automotive products also feature in these offensive lists and could enhance trade and
investment opportunities for the domestic automotive sector. The following table reveals the South
African automotive industrys trade balance with India in 2010.
India (Total trade R3 404,2 million) 2010

Main products
Engines
Catalytic converters
Engine parts
Body parts/panels
Automotive tooling
Other
Exports
R360,8 million
145,7
124,5
22,8
12,3
5,4
50,1
Main products
Light vehicles
MCV/HCV vehicles
Engine parts
Automotive tooling
Other
Imports
R3 043,4 million
2 251,5
165,6
132,2
56,4
44,5
393,2
SACU EFTA free trade agreement

In 2005 the Southern African Customs Union (SACU) and the European Free Trade Association
(EFTA) concluded an agreement to establish a free trade agreement (FTA) between the two regions.
Norway and Switzerland were among the founding member states of EFTA in 1960. Iceland joined
EFTA in 1970, followed by Liechtenstein in 1991. The free trade agreement provides for reciprocal
preferential market access between EFTA and SACU states. The SACUEFTA FTA which entered
into force on 1 May 2008 provides for South African economic operators to take advantage of trade
opportunities offered by the agreement and also consolidating trade relations with Western Europe.
EFTA countries are world leaders in several sectors vital to the global economy. Liechtenstein and
Switzerland are internationally renowned financial centres and hosts to major companies and multinationals. The FTA brings about a number of benefits to economic operators which include duty free
and quota free market access for SACU industrial products into EFTA markets.
The following table reveals the South African automotive industrys trade balance with EFTA countries.
Automotive trade balance 2010 EFTA countries

EFTA countries
Switzerland
2010 Imports
R million
R202,8
2010 Exports
R million
R241,4
47
EXPORTS
Source: AIEC, SARS
EXPORTS
Norway
Iceland
Liechtenstein
R19,5
R1,9
R3,6
R103,2
R3,5
-
Source: AIEC, SARS

South African automotive industry exports more than doubled to Switzerland and Iceland from 2009
to 2010.
EXPORTS OF VEHICLES
The South African automotive industry exported left and right hand drive vehicles to 77 destinations
in 2010. The top markets were the USA with 58 370 units followed by the UK with 39 865 units, Japan
with 21 347 units, Australia with 18 112 units and France with 13 389 units.
In 2010 the 239 465 CBU exports from South Africa comprised 75,8% or 181 654 passenger cars,
23,8% or 56 950 light commercial vehicles and 861 or 0,4% medium and heavy commercial vehicles
and buses. Passenger car exports as a percentage of passenger car production totaled 61,5% in
2010 compared to the 3,7% in 1995.
Volkswagen SA, with its Polo-series, was the leading exporter in 2010 overtaking Toyota, the export
leader since 2006 with its Innovative/International Multipurpose Vehicle programme and Corolla sedan. Opportunities presented by the African Growth and Opportunity Act (AGOA), which was implemented on 1 January 2001 by the USA towards 37 African countries, allowed for the duty and quota
free access of a variety of products, including vehicles, to the USA market. This trade arrangement
provided impetus for the automotive sectors export drive to the USA and hence, the country becoming the top destination for South African manufactured light vehicles. The Mercedes Benz C-class
and the BMW 3-series are currently exported to the USA.
The important objective of the MIDP in terms of model rationalization is not just to reduce the number of models but also to increase the model volumes of those models assembled in the domestic
market as well as the local content, in line with average volume increases. The average volumes of
passenger cars per model produced by the OEMs have increased from 11 500 units in 1995 to 29
900 units in 2010, however the local content has remained stable.
Light vehicles (passenger cars and light commercial vehicles) exports

2006 to 2010
Country
TOTAL
48 (R billion)
2006
23,9
2007
27,8
2008
48,3
2009
32,2
2010
37,8
RANKING OF EXPORTERS
Number 1 to Number 5
TOTAL (units)
USA
Germany
Japan
Australia
Algeria
France
Nigeria
UK
Korea Rep South
Zimbabwe
Other
EU
NAFTA
SADC
Toyota
BMW
VW
MBSA
Ford
179 320
11%
1%
29%
20%
3%
2%
1%
12%
1%
20%
20,2%
10,9%
4,7%
Toyota
BMW
VW
MBSA
Ford
170 587
13%
1%
26%
20%
3%
2%
2%
3%
2%
28%
15,1%
13,9%
5,4%
Toyota
VW
BMW
MBSA
GM
282 984
30%
2%
14%
13%
2%
2%
4%
2%
1%
30%
16,5%
30,0%
5,2%
Toyota
BMW
MBSA
VW
Ford
174 116
41%
13%
8%
7%
4%
2%
4%
1%
1%
1%
18%
21,1%
41,4%
5,4%
VW
Toyota
MBSA
BMW
Ford
238 604
35%
22%
8%
7%
3%
2%
2%
2%
1%
1%
17%
32,8%
35,5%
4,1%
Source: AIEC, NAAMSA/RGT, SARS

Exports of medium and heavy commercial vehicles and buses, in relation to passenger cars and light
commercial vehicles, have been relatively insignificant in terms of volumes over the past decade.
The main export destinations have consistently been South Africas neighbouring countries in the
SADC region.
Medium, heavy commercial vehicles and buses exports 2006 to 2010

2006
2007
2008
2009
EXPORTS
Country
2010
49
EXPORTS
TOTAL (R billion)
0,7
0,7
1,1
0,9
0,9
TOTAL (units)
539
650
1 227
831
861
Scania
Nissan Diesel
MAN
GM
Ford
Scania
Nissan Diesel
GM
Navistar
MAN
Scania
Nissan Diesel
Volvo
GM
Iveco
Nissan Diesel
Iveco
Scania
MAN
Renault Trucks
UD Trucks*
MAN
Scania
Iveco
GMSA
Zimbabwe
8%
23%
32%
26%
35%
Mozambique
8%
9%
18%
18%
24%
Zambia
11%
16%
13%
14%
8%
Germany
1%
1%
1%
6%
Malawi
4%
6%
9%
13%
6%
Tanzania
7%
5%
7%
8%
5%
Canada
2%
4%
Dem Rep of Congo
1%
6%
2%
1%
4%
Australia
23%
4%
1%
1%
2%
UK
3%
1%
1%
Other
34%
29%
15%
19%
5%
EU
4,7%
2,7%
1,3%
3,4%
7,7%
NAFTA
2,6%
2,2%
4,1%
SADC
42,0%
66,6%
89,3%
84,9%
82,7%
RANKING OF EXPORTERS
Number 1 to Number 5
Source: AIEC, NAAMSA/RGT, SARS

*Nissan Diesel now UD Trucks
AUTOMOTIVE COMPONENTS EXPORTS

Automotive component exports increased by R2,94 billion or 10,6% to R30,8 billion in 2010, from
the R27,9 billion in 2009. However, recognising the fact that the Rand strengthened by an average
of 15%, the growth in foreign currency terms was 30%, a remarkable recovery from the depressed
2009 level, and only 17% below the 2008 peak in real terms. The focus of exporters tends to be on
high value domestically beneficiated automotive components that consume as little transport and
space as possible. Catalytic converters remained the main component exported under the MIDP.
The popularity of catalytic converters, the main purpose of which is to reduce harmful emissions from
vehicles, is continuing to grow, owing to increasingly stringent emission legislation in Europe and the
USA. South Africa supplies approximately 15% of the global market for these converters.
South African component suppliers have been able to use their production flexibility as a decisive
competitive advantage in penetrating global markets. Automotive component manufacturers seek
contact with outside partners for purposes of market access, technology, process know-how, production rationalisation and other joint venture benefits. The diversification of automotive exports is
important because it reinforces a longer-term export future for the industry.
50
Continuous efforts to grow the South African automotive industrys export business are imperative.
A successful platform to showcase and promote the South African automotive industrys world-class
capabilities is participation by means of National Pavilions at major world events as well as inward
and outward trade missions. During 2011/12, financial assistance under Trade and Investment South
Africas Export Marketing and Investment Assistance Scheme (EMIA), will be provided to exhibitors
to attend National Pavilions at the Automechanika Middle East event in Dubai, UAE from 7 to 9 June,
2011, as well as the Johannesburg International Motor Show at Nasrec, Johannesburg from 6 to 16
October, 2011.
Automotive component export ranking by component category 2006 to 2010

2007
2008
2009
2010
% OF 2010
TOTAL
2010
Ranking
TOTAL (R million)
30 052
39 106
44 055
27 853
30 802
100%
15 810
21 683
24 267
12 280
14 761
47,9%
Stitched leather seat parts
2 549
2 760
3 084
2 357
2 898
9,4%
Silencers/exhaust
880
1 705
1 913
1 283
1 696
5,5%
Engine parts
984
1 092
1 853
1 554
1 505
4,9%
Tyres
1 220
1 196
1 676
1 355
1 133
3,7%
Engines
1 216
1 080
1 045
605
965
3,1%
Automotive tooling
272
520
518
464
447
1,5%
Transmission shafts/cranks
351
556
782
503
415
1,3%
Road wheels and parts
681
772
694
388
383
1,2%
Filters
218
275
316
341
337
1,1%
10
Shock absorbers
12
172
261
329
1,1%
11
Automotive glass
321
295
314
403
305
1,0%
12
Radiators
365
368
350
384
286
0,9%
13
Clutches/shaft couplings
81
152
166
194
270
0,9%
14
Gauges/instruments/parts
184
248
328
291
241
0,8%
15
Lighting/signalling/wiping
63
164
210
165
229
0,7%
16
Steering wheel/column/box
69
150
287
169
170
0,6%
17
Batteries
83
115
169
172
116
0,4%
18
Axles
375
273
279
186
111
0,4%
19
Brake parts
120
138
124
105
93
0,3%
20
Ignition/starting equipment
174
204
191
126
83
0,3%
21
Jacks
18
60
88
110
83
0,3%
22
Body parts/panels
115
127
122
75
75
0,2%
23
Gaskets
45
70
103
84
75
0,2%
24
Alarm systems
81
97
92
53
73
0,2%
25
Gear boxes
113
86
84
80
67
0,2%
26
EXPORTS
2006
COUNTRY
51
EXPORTS
Wiring harnesses
208
198
205
93
51
0,2%
27
Air conditioners
11
21
29
19
35
0,1%
28
Seat belts
60
62
48
41
33
0,1%
29
Springs
38
44
44
35
30
0,1%
30
Car radios
377
589
14
43
20
31
32
2 962
3 986
4 480
3 628
3 482
11,3%
Seats
Other parts of parts
Source: AIEC, SARS

The range, in respect of the diversity of automotive products, is increasing. Many of the domestic
automotive component manufacturers have links with European-based companies, which is largely
because the German OEMs put pressure on their European suppliers to form links with South African companies when they instituted their export programmes. The EU has extensively displaced its
own production to lower-cost developing countries such as South Africa.
South African manufactured automotive components are exported worldwide to 131 countries. The
main destinations remain first world markets although emerging markets are starting to feature as
export destinations indicating progress in the South African component manufacturers ability to
compete globally.
Top 10 automotive component export destinations 2006 to 2010

Country
2006
2007
2008
2009
2010
1. Germany
29,3%
28,5%
33,1%
33,2%
35,8%
2. USA
9,7%
8,0%
7,7%
6,0%
8,1%
3. Spain
11,5%
10,4%
9,8%
6,6%
6,7%
4. UK
9,3%
7,8%
8,4%
7,1%
6,3%
5. Poland
2,9%
2,7%
3,2%
3,5%
4,0%
6. Belgium
4,4%
5,0%
5,2%
4,6%
3,8%
7. Brazil
0,8%
1,0%
1,6%
2,1%
2,8%
8. France
7,0%
7,8%
5,8%
4,0%
2,8%
9. Netherlands
1,8%
2,4%
2,3%
2,1%
2,2%
10. Zambia
1,1%
1,3%
1,3%
2,2%
2,1%
Other
22,2%
25,1%
21,6%
28,6%
25,4%
Source: AIEC, SARS

The following tables show the major destinations for the automotive component category exports
from South Africa.
Catalytic converters (1)

COUNTRY
TOTAL (R million)
2006
2007
2008
2009
2010
15 810,3
21 683,4
24 267,4
12 279,6
14 760,7
Germany
22%
21%
32%
36%
36%
Spain
17%
15%
15%
13%
12%
USA
8%
9%
9%
8%
10%
52
UK
11%
10%
10%
8%
8%
Poland
6%
5%
5%
4%
7%
France
12%
12%
9%
7%
5%
Czech Republic
2%
2%
2%
2%
4%
Netherlands
1%
2%
2%
2%
3%
Belgium
5%
5%
5%
6%
3%
Japan
3%
2%
2%
4%
2%
Sweden
3%
2%
2%
2%
2%
Turkey
3%
3%
2%
2%
2%
Mexico
1%
1%
Canada
1%
6%
3%
1%
Stitched leather seat parts (2)

COUNTRY
2006
2007
2008
2009
2010
2 549,5
2 760,2
3 084,0
2 356,8
2 897,5
Germany
76%
83%
82%
93%
92%
Spain
3%
5%
6%
3%
4%
UK
5%
3%
4%
1%
2%
TOTAL (R million)
Silencers/Exhausts (3)
2006
2007
2008
2009
2010
TOTAL (R million)
880,3
1 705,0
1 913,4
1 282,8
1 696,4
Belgium
18%
27%
35%
14%
29%
Germany
30%
33%
18%
13%
21%
12%
36%
13%
USA
17%
9%
9%
5%
8%
Italy
3%
2%
9%
15%
8%
7%
Japan
2%
3%
3%
3%
3%
Spain
6%
2%
2%
1%
2%
Poland
Hungary
53
EXPORTS
COUNTRY
EXPORTS
Mexico
1%
1%
2%
2%
Sweden
5%
3%
2%
2%
2%
Turkey
2%
1%
1%
1%
1%
Engine parts (4)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
983,7
1 091,5
1 852,7
1 553,6
1 505,0
USA
26%
12%
16%
22%
25%
UK
17%
17%
26%
20%
23%
Germany
21%
30%
26%
26%
19%
Brazil
6%
6%
5%
8%
5%
Korea Rep South
7%
6%
5%
1%
5%
1%
4%
1%
1%
1%
1%
3%
Estonia
2%
Zambia
3%
4%
2%
3%
2%
Zimbabwe
2%
3%
2%
2%
2%
India
2%
2%
1%
2%
1%
1%
1%
1%
2%
2%
2%
4%
1%
Australia
Mozambique
Dem Rep of Congo

Angola
Tyres (5)
COUNTRY
2006
2007
2008
2009
2010
1 219,7
1 195,7
1 676,1
1 355,4
1 132,6
Germany
10%
8%
9%
11%
18%
Netherlands
19%
17%
16%
15%
12%
Zimbabwe
5%
8%
6%
7%
10%
Zambia
2%
4%
5%
7%
9%
Mozambique
4%
5%
5%
6%
8%
Brazil
1%
3%
8%
Kenya
4%
5%
4%
6%
6%
Angola
3%
4%
5%
4%
3%
3%
3%
Malawi
2%
2%
3%
2%
2%
Nigeria
2%
2%
2%
USA
11%
6%
9%
4%
2%
UK
9%
10%
9%
7%
2%
Saudi Arabia
2%
1%
2%
2%
2%
Mauritius
1%
1%
1%
1%
1%
Ghana
1%
1%
1%
1%
1%
TOTAL (R million)
Seychelles
54
Engines (6)
COUNTRY
2006
2007
2008
2009
2010
1 216,3
1 080,0
1 045,4
604,7
964,9
Brazil
7%
16%
46%
53%
63%
India
15%
Venezuela
6%
6%
7%
17%
10%
Zambia
1%
1%
3%
6%
5%
UK
1%
4%
2%
Dem Rep of Congo
1%
1%
1%
1%
Zimbabwe
2%
2%
2%
1%
TOTAL (R million)
Automotive tooling (7)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
272,2
519,6
518,0
463,5
446,9
15%
2%
5%
5%
1%
14%
Turkey
3%
2%
8%
UAE
1%
1%
4%
7%
7%
Germany
15%
5%
3%
8%
5%
USA
7%
10%
3%
5%
5%
Australia
9%
11%
4%
2%
4%
Canada
3%
1%
2%
4%
Romania
1%
3%
Nigeria
2%
1%
2%
1%
3%
Singapore
1%
1%
5%
2%
3%
Zambia
5%
1%
2%
4%
2%
Mozambique
3%
1%
2%
2%
2%
UK
11%
4%
4%
3%
2%
Zimbabwe
2%
1%
1%
3%
2%
Mongolia
2%
New Zealand
1%
Angola
2%
26%
1%
2%
1%
India
2%
1%
3%
5%
1%
Korea Rep South

Kenya
1%
2%
1%
1%
1%
1%
EXPORTS
Peru
China
Transmission shafts and cranks (8)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
351,1
556,3
781,7
503,2
415,1
Germany
35%
42%
40%
30%
31%
Zambia
4%
5%
6%
7%
9%
Brazil
12%
11%
7%
6%
8%
Zimbabwe
5%
5%
3%
7%
6%
55
EXPORTS
Belgium
5%
6%
5%
7%
5%
2%
2%
5%
Ghana
1%
2%
3%
4%
Mozambique
1%
1%
1%
2%
4%
India
1%
1%
2%
3%
Mali
1%
1%
1%
1%
3%
Australia
2%
1%
1%
2%
2%
1%
1%
2%
Tanzania
1%
1%
1%
2%
1%
USA
5%
2%
2%
3%
1%
UK
7%
10%
8%
3%
1%
1%
1%
1%
Dem Rep of Congo
Guinea
China
Road wheels/parts (9)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
681,3
771,9
693,9
387,9
382,7
Germany
40%
49%
66%
72%
71%
Spain
2%
2%
9%
11%
Thailand
4%
Algeria
1%
2%
2%
Zambia
2%
1%
1%
Iraq
1%
3%
4%
1%
Zimbabwe
1%
1%
1%
1%
Mozambique
1%
1%
Filters (10)
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
217,8
275,5
315,8
341,3
337,5
Germany
29%
40%
31%
40%
31%
Zimbabwe
6%
4%
4%
6%
11%
10%
Belgium
1%
3%
9%
9%
7%
USA
8%
11%
11%
6%
6%
Mozambique
5%
4%
4%
4%
6%
Zambia
5%
5%
5%
5%
5%
Mexico
5%
Hong Kong
2%
Australia
11%
8%
7%
3%
2%
Angola
2%
2%
2%
3%
2%
Malawi
1%
1%
1%
1%
1%
Netherlands
6%
7%
8%
2%
1%
China
56
Shock absorbers (11)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
1,4
12,4
172,3
261,0
329,0
Germany
1%
93%
88%
90%
China
1%
3%
Zimbabwe
60%
17%
2%
2%
2%
Zambia
32%
19%
1%
3%
2%
Glass (12)
2006
2007
2008
2009
2010
TOTAL (R million)
320,9
295,2
314,5
403,4
305,4
UK
32%
30%
27%
26%
22%
Germany
15%
14%
11%
15%
21%
Belgium
13%
15%
18%
18%
20%
France
11%
11%
13%
15%
12%
Italy
7%
6%
7%
7%
7%
Spain
6%
7%
6%
6%
7%
Poland
1%
1%
1%
1%
3%
USA
8%
7%
4%
2%
1%
EXPORTS
COUNTRY
Radiators (13)
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
365,0
368,3
350,1
383,8
285,6
Australia
22%
36%
44%
22%
29%
Germany
15%
20%
21%
14%
26%
USA
49%
29%
23%
13%
21%
Algeria
27%
12%
Singapore
1%
1%
2%
2%
Belgium
1%
3%
1%
1%
1%
Zambia
1%
1%
Dem Rep of Congo
1%
Clutches and shaft couplings (14)
57
EXPORTS
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
81,3
152,2
166,0
193,6
270,4
Germany
38%
39%
54%
57%
69%
16%
17%
20%
12%
Australia
5%
4%
4%
3%
3%
UK
14%
5%
8%
2%
2%
Mexico
1%
3%
3%
2%
2%
USA
8%
7%
5%
3%
2%
1%
2%
1%
2%
Zimbabwe
5%
2%
2%
2%
2%
Zambia
3%
1%
2%
1%
1%
UAE
Belgium
Gauges, instruments and parts (15)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
183,8
247,7
327,8
290,6
240,8
UK
12%
12%
15%
14%
13%
Zambia
9%
12%
8%
6%
8%
USA
12%
8%
5%
6%
7%
UAE
1%
6%
6%
7%
Dem Rep of Congo
2%
2%
3%
7%
Australia
5%
9%
5%
7%
7%
Mozambique
4%
4%
2%
7%
6%
Zimbabwe
3%
3%
3%
4%
4%
Angola
2%
2%
4%
2%
3%
Egypt
1%
3%
Lighting/signalling/wiping equipment (16)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
63,1
164,2
210,3
164,5
229,0
Germany
9%
28%
32%
43%
47%
USA
34%
33%
19%
12%
16%
3%
2%
2%
8%
17%
7%
5%
8%
5%
7%
8%
8%
3%
Zimbabwe
3%
2%
3%
2%
3%
Belgium
3%
2%
3%
2%
3%
Australia
6%
3%
2%
2%
3%
Zambia
1%
1%
3%
2%
1%
Mozambique
3%
1%
1%
1%
Russia
UK
Sweden
Steering wheels/columns/boxes (17)
58
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
69,0
149,7
287,4
169,3
170,2
Germany
38%
61%
50%
72%
74%
USA
29%
15%
12%
18%
9%
Brazil
2%
2%
1%
3%
Mexico
2%
Algeria
1%
1%
1%
2%
2%
Canada
11%
29%
2%
Belgium
1%
3%
1%
1%
2%
Zimbabwe
1%
1%
1%
1%
1%
Batteries (18)
2006
2007
2008
2009
2010
TOTAL (R million)
83,2
115,2
169,1
171,8
116,4
Mozambique
18%
20%
25%
32%
44%
Zambia
9%
11%
13%
19%
22%
UK
57%
36%
31%
22%
12%
Zimbabwe
1%
5%
7%
10%
8%
France
3%
3%
6%
2%
5%
Dem Rep of Congo
3%
1%
2%
Malawi
2%
4%
3%
2%
Pakistan
1%
EXPORTS
COUNTRY
Axles (19)
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
374,7
273,4
278,6
186,0
111,5
USA
62%
25%
30%
9%
37%
Germany
30%
61%
37%
3%
31%
Algeria
2%
5%
46%
16%
Zambia
1%
2%
1%
11%
5%
Zimbabwe
1%
2%
3%
2%
2%
Dem Rep of Congo
1%
2%
Tanzania
1%
2%
Australia
1%
1%
1%
1%
2%
2008
2009
2010
Brake parts (20)

COUNTRY
2006
2007
59
EXPORTS
TOTAL (R million)
120,2
137,7
124,4
104,6
92,7
Belgium
39%
31%
50%
35%
26%
Kenya
3%
2%
3%
2%
22%
Zimbabwe
6%
5%
4%
7%
9%
Zambia
5%
4%
3%
4%
5%
Taiwan
2%
2%
1%
3%
4%
France
14%
14%
11%
3%
Tanzania
1%
1%
2%
3%
3%
Germany
6%
1%
3%
Mozambique
4%
2%
2%
3%
3%
Philippines
2%
2%
2%
2%
3%
Ignition/starting equipment (21)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
174,3
204,2
191,4
126,3
83,2
Germany
68%
73%
54%
48%
41%
Zimbabwe
3%
3%
5%
7%
13%
Zambia
4%
3%
9%
8%
8%
Mozambique
5%
2%
3%
4%
6%
Dem Rep of Congo
1%
2%
2%
2%
5%
USA
1%
1%
2%
1%
4%
Tanzania
1%
1%
1%
4%
4%
Australia
7%
1%
3%
1%
3%
Thailand
1%
2%
Angola
2%
2%
3%
4%
2%
Jacks (22)
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
18,1
60,1
88,3
109,6
82,6
USA
25%
38%
17%
35%
China
5%
20%
62%
32%
24%
11%
10%
Korea Rep South
1%
6%
7%
Poland
1%
5%
Spain
4%
UK
1%
2%
1%
3%
Zimbabwe
2%
1%
1%
2%
3%
Zambia
4%
1%
2%
1%
2%
Australia
15%
6%
3%
3%
1%
Germany
Body parts and panels (23)
60
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
114,8
127,4
121,6
74,5
75,2
Germany
42%
43%
46%
48%
32%
Mozambique
1%
1%
2%
6%
19%
16%
Zimbabwe
3%
1%
1%
3%
3%
Zambia
6%
35%
13%
5%
3%
Australia
2%
1%
3%
3%
Belgium
1%
1%
2%
3%
Algeria
5%
2%
Brazil
4%
2%
India
Sierra Leone
Gaskets (24)
2006
2007
2008
2009
2010
TOTAL (R million)
45,4
69,7
103,3
83,5
75,0
Belgium
8%
14%
12%
17%
16%
Italy
1%
18%
18%
18%
15%
Zambia
12%
10%
6%
7%
14%
UK
9%
4%
6%
7%
7%
Zimbabwe
13%
9%
4%
6%
7%
Dem Rep of Congo
2%
4%
6%
3%
5%
Mozambique
6%
3%
3%
4%
5%
Angola
7%
11%
10%
9%
4%
Brazil
1%
1%
3%
5%
1%
2%
2%
2%
Tanzania
EXPORTS
COUNTRY
Alarm systems (25)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
80,5
96,9
92,2
52,8
73,2
Netherlands
36%
58%
48%
45%
Egypt
5%
UK
49%
14%
5%
5%
5%
Ghana
1%
2%
1%
5%
Zimbabwe
2%
2%
1%
6%
4%
Malaysia
5%
3%
3%
4%
4%
Zambia
4%
2%
1%
2%
4%
USA
13%
7%
4%
5%
3%
Angola
1%
1%
1%
3%
Mozambique
1%
2%
1%
4%
2%
Gear boxes (26)
61
EXPORTS
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
113,3
85,6
83,8
79,7
66,6
USA
36%
23%
23%
7%
37%
Algeria
1%
2%
5%
12%
11%
Zimbabwe
2%
4%
3%
5%
9%
8%
9%
10%
7%
Germany
31%
30%
17%
15%
6%
Zambia
4%
5%
4%
4%
5%
Mozambique
2%
2%
3%
3%
3%
Kuwait
2%
3%
Hungary
3%
4%
4%
11%
16%
3%
UAE
Iraq
Wiring harnesses (27)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
207,9
197,7
205,0
92,6
51,3
Germany
94%
89%
89%
79%
67%
1%
1%
5%
8%
1%
1%
3%
Poland
1%
3%
UK
1%
1%
3%
Zambia
1%
1%
3%
2%
Canada
1%
2%
Finland
2%
Italy
1%
Algeria
USA
Air conditioners (28)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
11,5
21,1
29,2
19,0
34,5
1%
4%
25%
Australia
5%
19%
20%
Nigeria
10%
1%
1%
2%
14%
Ghana
1%
3%
1%
1%
6%
Iraq
5%
11%
12%
1%
5%
USA
5%
UK
7%
43%
4%
12%
4%
Angola
13%
6%
59%
7%
3%
4%
3%
3%
1%
5%
2%
2%
Algeria
UAE
Mauritius
62
IMPORTS
63
Seat belts (29)

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
60,3
62,0
47,7
40,8
32,9
Australia
56%
69%
84%
81%
76%
Taiwan
3%
4%
3%
6%
12%
Philippines
2%
1%
3%
4%
7%
1%
Zambia
IMPORTS
Springs (30)
64
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
37,7
43,9
43,5
34,6
30,0
Germany
48%
37%
39%
37%
38%
Netherlands
10%
16%
5%
11%
12%
UK
11%
5%
6%
5%
12%
Thailand
9%
21%
20%
7%
9%
Australia
6%
4%
6%
5%
6%
Belgium
1%
3%
4%
6%
Japan
2%
3%
Sweden
4%
3%
2%
3%
2%
Zambia
1%
1%
1%
1%
1%
1%
1%
DRC
Car radios (31)

2006
2007
2008
2009
2010
TOTAL (R million)
376,7
589,4
14,3
43,3
20,0
Germany
82%
82%
4%
13%
53%
Mozambique
29%
15%
15%
Malawi
5%
3%
9%
Zambia
18%
8%
5%
Egypt
5%
1%
4%
Zimbabwe
3%
4%
3%
Angola
6%
2%
2%
Nigeria
1%
1%
2%
Mali
1%
New Zealand
2%
1%
IMPORTS
COUNTRY
Seats (32)
COUNTRY
2006
2007
2008
2009
2010
TOTAL (R million)
6,6
7,8
8,3
6,2
5,4
Algeria
1%
9%
11%
Zambia
4%
8%
9%
11%
11%
Seychelles
11%
Singapore
19%
13%
20%
5%
10%
Zimbabwe
2%
1%
5%
5%
10%
Australia
7%
6%
3%
11%
9%
Mozambique
9%
3%
4%
6%
6%
India
5%
USA
10%
26%
24%
8%
5%
4%
Angola
65
IMPORTS
IMPORTS BY COUNTRY OF ORIGIN

Imports of automotive products into South Africa remain a function of the success of the MIDP under
its import/export complementation scheme, a function of domestic market demand and a function
of currency movements. New vehicle sales in South Africa in 2010 increased by 24,7%. However,
imports of CBUs, original equipment components to accommodate vehicle production, as well as replacement parts for the growing vehicle parc (number of registered vehicles) of 9,8 million vehicles,
remain high. The countries of origin of CBUs and automotive components imported into South Africa
generally reflect the global linkages with the head offices of parent companies, except in the notable
case of China where most of the imports were for replacement parts.
Import value and ranking by country 2010 vs 2009

Country
Germany
Japan
Korea Republic South
USA
China
United Kingdom
Thailand
Spain
Brazil
India
France
Sweden
Czech Republic
Italy
Belgium
Austria
Poland
Taiwan
Mexico
Indonesia
Netherlands
Hungary
Romania
Argentina
Turkey
Philippines
Malaysia
Slovak Republic
Australia
Portugal
Switzerland
66
2010 Ranking
R30 129,3
R17 906,1
R5 395,6
R5 253,3
R5 151,7
R5 063,4
R5 020,7
R3 773,6
R3 145,7
R3 069,6
R1 751,0
R1 599,9
R1 547,7
R1 492,6
R979,7
R967,3
R855,2
R819,7
R794,4
R789,4
R650,5
R577,6
R494,5
R459,9
R459,0
R426,3
R341,0
R327,3
R285,6
R259,7
R202,8
2010
R million
2009 Ranking
1
2
3
4
5
6
7
8
9
10
11
12
13
14
14 COUNTRIES ABOVE R1 BILLION
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
2009
R million
1
2
8
6
5
4
3
9
7
10
11
16
15
12
R23 982,2
R13 821,3
R2 999,9
R3 330,3
R3 501,1
R3 750,9
R4 058,3
R2 380,2
R3 106,7
R1 806,1
R1 559,6
R817,2
R910,7
R1 530,8
17
13
19
18
26
21
24
20
22
37
23
29
31
28
27
30
32
R745,7
R1 030,4
R608,0
R725,4
R322,0
R529,6
R389,8
R577,2
R502,9
R75,1
R407,0
R287,7
R240,3
R290,2
R310,9
R259,2
R167,3
Canada
Denmark
Israel
Finland
Luxembourg
Hong Kong
Slovenia
Singapore
UAE
Ireland
R176,6
R149,0
R90,7
R88,5
R71,4
R60,6
R60,5
R56,3
R35,0
R32,5
32
33
34
35
36
37
38
39
40
41
25
34
35
36
41
38
42
39
14
40
R340,0
R101,8
R91,1
R89,1
R45,1
R74,1
R45,0
R61,3
R919,9
R55,6
IMPORTS
67
IMPORTS
Vietnam
R22,5
42
R10,1
Source: AIEC, SARS
IMPORTS OF VEHICLES
Light vehicles (passenger cars and light commercial vehicles) were imported from 28 countries in
2010. The main countries of origin for the passenger cars and light commercial vehicles were Japan
with 52 036 units followed by Germany with 49 446 units, South Korea with 21 975 units, the UK
with 13 830 units and India with 13 168 units.
The nature of the South African vehicle parc, also defined as the number of registered vehicles,
is changing under the MIDP. According to Response Group Trendline/NAAMSA, 19 brands from
eight local OEMs were available in South Africa in 1995 and buyers in the passenger car segment
could make 356 choices in the domestic market, compared to the 52 brands and 1 914 passenger
car model derivatives available in 2010, the biggest ratio compared to its market size in the world.
Inroads into the domestic market by imports, initially by the Koreans, have latterly been followed by
the Indians.
Total passenger car and commercial vehicle imports increased significantly from 26 339 units in
1995 to 260 301 units in 2010. Imports of light vehicles increased from 6,6% in 1995 to 52,8% of
total domestic new vehicle sales, of 492 907 units, in 2010. While this trend is indicative of the aim
of the MIDP to encourage domestic companies to specialise in high volume models, obtain benefits
of economies of scale in order to export competitively and in turn import the low volume models not
manufactured in South Africa, the quantum of imports by OEMs not assembling in South Africa has
far exceeded earlier projections. However, the domestic model mix can now be arranged to provide
the most effective combination of domestically assembled and imported models to satisfy consumers. In value terms, Germany, Japan and South Korea remained the top three countries of origin
for passenger car imports during 2010.
Light vehicle imports (passenger cars and light commercial vehicles)

2006 to 2010
2006
2007
2008
2009
2010
Total value (R billion)(FOB)
R30,3
R35,1
R25,8
R21,5
R33,3
Country of origin
Germany
32%
26%
28%
34%
24%
Japan
21%
21%
24%
22%
20%
Korea Rep South
11%
11%
9%
12%
14%
UK
7%
10%
12%
8%
9%
India
5%
2%
3%
5%
7%
USA
3%
5%
5%
4%
6%
Spain
7%
5%
3%
2%
3%
China
5%
6%
1%
3%
68
Thailand
1%
1%
2%
Belgium
1%
2%
2%
14%
14%
9%
9%
10%
306 455
312 855
254 633
196 246
260 301
Other
Number of light vehicle imports
Source: NAAMSA, SARS

As far as used vehicle imports are concerned, strict control measures ensure that only a limited
number of legal import permits are issued to allow used vehicles into South Africa. In terms of current
legislation, used vehicles qualifying for an import permit include those for returning residents and immigrants, vintage cars, racing cars, donated vehicles for welfare organisations and adapted vehicles
for persons with physical disabilities. Without a legal import permit, imported used vehicles cannot be
registered on the National Transport Information System (NaTIS). The system also combats stolen
and non-complying vehicle registrations. All vehicle-manufacturing plants in South Africa have been
linked on line to the system to facilitate the collation of data of vehicles produced. Left hand drive
vehicles are also not allowed into the country.
PARTS AND COMPONENTS IMPORTS
The strong focus on the sourcing of components in the domestic market and the development of
the local component supplier industry is important because it will reduce the risks associated with
exchange rate fluctuations. The OEMs perceive increasing local sourcing levels in South African
manufactured vehicles as a prerequisite for establishing a more sustainable productive base.
A large portion of the automotive imports comprises original equipment components, which are subsequently exported as CBUs after significant value adding processes. Original equipment component imports by the OEMs amounted to R37,9 billion in 2010. Imports of original equipment components originated mainly from Germany, Japan and Thailand.
Original equipment component imports (Chapter 98) 2006 to 2010

COUNTRY
2006
2007
2008
2009
2010
TOTAL (R billion)
35,3
40,5
48,1
30,0
37,9
Germany
33%
30%
36%
35%
38%
Japan
27%
30%
25%
22%
22%
Thailand
9%
9%
9%
11%
9%
69
IMPORTS
Much of the strategic behaviour of OEMs in expanding market share in South Africa is directed at optimizing their duty position. Minimising duty payments can be achieved in a number of ways. Firstly,
OEMs can limit vehicle imports. Secondly, local content in domestically produced vehicles can be
adjusted upwards. Thirdly, OEMs undertaking specified investments which qualify under the Productive Asset Allowance (PAA) receive import credits. Fourthly, OEMs can expand exports either of
vehicles or automotive components and, by means of increased exports, reduce the liability of paying duty on imports. These considerations have exercised a decisive effect on the strategic choices
made by domestic OEMs.
Brazil
8%
7%
7%
8%
6%
Spain
4%
3%
2%
3%
5%
Sweden
1%
1%
1%
1%
3%
Czech Rep
1%
1%
1%
2%
3%
UK
3%
3%
4%
3%
3%
USA
3%
3%
3%
3%
2%
Austria
2%
2%
2%
2%
2%
Other
9%
11%
10%
10%
7%
Source: AIEC, SARS

The increasing number of South African registered vehicles calls for more replacement parts for passenger cars and trucks. The following table reveals the increasing trend in the import of aftermarket
replacement parts to complement the products not manufactured in the domestic market and more
particularly to service the rapidly increasing imported vehicle parc for which most parts are imported.
The growth of cheaper products, mainly from China, has exacerbated this trend. The growth of imported replacement parts is even more startling in real terms. After adjusting for the stronger Rand
currency, imports in 2010 increased by 27% from 2009, and were also 11 % higher than 2008.
Top 10 replacement parts imported (R million) 2006 to 2010

Part category
2006
2007
2008
2009
2010
Tyres
1 448
2 037
2 182
1 961
2 900
Engine parts
1 770
2 046
2 159
2 393
2 549
Automotive tooling
2 269
2 359
2 743
2 167
1 596
Leather and leather parts
1 027
1 140
1 565
1 018
1 139
374
491
1 556
1 116
1 076
Gauges/Instrument parts
761
875
2 641
978
984
452
418
696
632
903
Brake parts
750
1 059
860
730
774
Lighting equipment/parts
473
552
662
588
746
Engines
402
702
1 682
816
705
Other
10 059
12 031
12 903
13 557
13 946
Total
19 785
23 710
29 649
25 956
27 318
Source: AIEC, SARS
The following table reveals that the countries of origin of the replacement parts imported were aligned
with the main countries of origin for new passenger cars and commercial vehicles. Imports from
China, however, have increased, indicating the cost competitiveness of this increasingly dominant
automotive force, not just in South Africa but in the global automotive arena in general.
70
Top 10 countries of origin for replacement parts imported 2006 to 2010

Country of origin
2006
2007
2008
2009
2010
Germany
26,6%
25,1%
25,4%
25,9%
24,9%
China
9,6%
9,8%
9,9%
11,3%
14,1%
USA
8,7%
8,5%
11,0%
9,4%
9,0%
Japan
10,6%
9,5%
8,0%
7,8%
9,0%
Italy
4,8%
4,9%
4,4%
4,4%
3,5%
UK
5,0%
4,6%
4,6%
4,7%
3,5%
Thailand
3,0%
3,0%
2,6%
2,8%
3,4%
France
4,0%
4,9%
4,7%
4,1%
3,0%
Spain
2,8%
2,9%
2,5%
2,9%
2,9%
Taiwan
4,0%
3,3%
2,3%
2,4%
2,5%
Other
20,9%
23,5%
24,6%
24,3%
24,2%
Source: AIEC, SARS
MAIN AUTOMOTIVE TRADING PARTNERS

South Africas main automotive trading partners (exports plus imports) for 2010 reflected the countrys global linkages with the OEM parent companies in Germany, Japan and the USA. Germany
comprised R49,65 billion or 29,3% of South Africas total automotive trade in 2010, followed by Japan with R21,33 billion or 12,6% and the USA with R20,97 billion or 12,4% of total automotive trade.
The table below ranks the South African automotive industrys top 10 automotive trading partners
for 2010 compared with 2009.
South Africas main automotive trading partners 2010 vs 2009

COUNTRY
1. Germany
2. Japan
3. USA
4. UK
5. Korea Rep South
6. Spain
7. China
8. Thailand
9. Brazil
10. France
Other
Total trade
TOTAL TRADE 2010

(R billion)
TOTAL TRADE 2009

(R billion)
R49,65
R21,33
R20,97
R7,74
R6,18
R6,12
R5,38
R5,07
R4,02
R3,49
R39,75
R169,7
R38,98
R17,40
R19,08
R6,15
R3,42
R4,46
R3,55
R4,38
R3,67
R3,34
R36,47
R140,9
Source: AIEC, SARS
71
The following tables reflect details and rankings of the South African automotive industrys top 10
automotive trading partners in 2010, reflecting the main products exported and imported, where applicable.
1. Germany (Total trade R49 651,2 million) 2010

Main products
Exports
R19 521,9 million
Main products
Imports
R30 129,3 million
Light vehicles
Stitched leather parts
Silencers/exhausts
Shock absorbers
Engine parts
Road wheels/parts
Tyres
Other
8 408,1
5 368,4
2 677,6
357,4
296,2
279,4
273,6
206,6
186,9
127,6
1 340,1

Light vehicles
Engine parts
MCV/HCV vehicles
Gauges/instrument parts
Automotive tooling
Tyres
Other
14 576,8
8 163,8
622,1
446,1
396,8
307,6
292,0
286,5
282,8
273,1
4 481,7
2. Japan (Total trade R21 330,1 million) 2010

Main products
Exports
R3 424,0 million
Main products
Imports
R17 906,1 million
Light vehicles
3 005,5
8 350,9
358,1
Light vehicles
6 764,7
Silencers/exhausts
46,1
Tyres
525,6
1,7
Engine parts
292,0
Engine parts
1,1
MCV/HCV vehicles
279,0
Springs
0,8
Automotive tooling
173,1
Brake parts
0,7
Filters
97,8
Tyres
0,7
89,1
MCV/HCV vehicles
0,6
86,2
Alarm systems
0,5
Engines
71,8
Other
8,2
Other
1 175,9
3. USA (Total trade R20 971,5 million) 2010
72
Main products
Exports
R15 718,2 million
Main products
Imports
R5 253,3 million
Light vehicles
13 229,0
Light vehicles
1 903,0
1 478,4
751,9
Engine parts
369,3
Engine parts
435,9
Silencers/exhausts
141,1
208,4
Radiators
60,1
Tyres
180,6
Axles
41,6
161,3
36,6
146,8
Jacks
28,7
Automotive tooling
124,8
Gear boxes
24,8
Engines
95,1
Tyres
23,9
MCV/HCV vehicles
78,9
Other
284,7
Other
1 166,6
4. UK (Total trade R7 740,9 million) 2010

Main products
Exports
R2 677,5 million
Main products
Imports
R5 063,4 million
1 202,9
Light vehicles
3 073,6
Light vehicles
711,2
1 006,3
Engine parts
348,9
Engine parts
112,7
Automotive glass
66,1
Automotive tooling
99,3
52,5
Engines
87,7
31,1
72,2
Tyres
20,4
43,3
Batteries
14,1
Tyres
35,0
Engines
14,0
29,1
Silencers/exhausts
11,5
Brake parts
25,3
Other
204,8
Other
478,9
5. Korea Rep South (Total trade R6 179,8 million) 2010

Main products
Exports
R784,2 million
Main products
Imports
R5 395,6 million
Light vehicles
548,4
Light vehicles
4 705,7
134,2
Tyres
177,2
Engine parts
76,6
Batteries
87,2
Jacks
5,9
MCV/HCV vehicles
66,2
Automotive tooling
5,1
Automotive tooling
24,8
Silencers/exhausts
3,8
Engines
23,7
0,1
Engine parts
20,7
Other
10,1
20,6
Filters
17,3
Silencers/exhausts
14,9
Other
237,3
6. Spain (Total trade R6 122,7 million) 2010

Main products
Exports
R2 349,1 million
Main products
Imports
R3 773,6 million
1 715,1
1 777,4
Light vehicles
282,4
Light vehicles
935,4
112,0
MCV/HCV vehicles
241,2
Road wheels/parts
41,3
Tyres
164,3
Silencers/exhausts
37,5
Brake parts
40,6
Automotive glass
20,4
39,8
Tyres
7,2
Engine parts
37,9
73
Jacks
3,6
34,4
Filters
3,1
Body parts/panels
33,2
Radiators
1,5
Silencers/exhausts
22,2
Other
125,0
Other
447,2
7. China (Total trade R5 383,7 million) 2010

Main products
Exports
R232,0 million
Main products
Imports
R5 151,7 million
Automotive tooling
64,5
Light vehicles
893,1
Filters
34,6
Tyres
879,3
Jacks
16,9
282,0
Alarm systems
15,7
Engine parts
255,3
Shock absorbers
10,0
Automotive tooling
205,5
4,9
Road wheels/parts
129,8
4,6
Brake parts
114,0
Silencers/exhausts
3,8
110,7
Radiators
1,6
109,1
Light vehicles
1,6
Car radios
88,9
Other
73,8
Other
2 084,0
8. Thailand (Total trade R5 067,7 million) 2010

Main products
Exports
R47,0 million
Main products
Imports
R5 020,7 million
Road wheels/parts
16,7
3 351,0
Springs
2,8
Light vehicles
710,0
Tyres
2,0
122,3
2,0
Brake parts
69,5
Silencers/exhausts
1,3
Wiring harnesses
59,9
Light vehicles
0,9
Road wheels/parts
57,8
Axles
0,5
Car radios
52,9
0,4
52,2
0,3
Engine parts
49,9
Engine parts
0,3
Tyres
47,2
Other
19,8
Other
448,0
9. Brazil (Total trade R4 021,3 million) 2010

Main products
74
Exports
R875,6 million
Main products
Imports
R3 145,7 million
Engines
603,5
2 236,7
Tyres
90,5
MCV/HCV vehicles
144,8
Engine parts
82,6
Engine parts
128,0
31,3
Axles
126,3
Silencers/exhausts
7,3
Light vehicles
118,3
Steering wheels/columns
4,8
Body parts and panels
84,9
3,3
Batteries
22,8
Gaskets
2,3
17,6
2,0
Tyres
15,7
Filters
1,7
15,3
Other
46,3
Other
235,3
10. France (Total trade R3 487,2 million) 2010

Main products
Exports
R1 736,2 million
Main products
Imports
R1 751,0 million
Light vehicles
877,8
Light vehicles
657,7
703,7
223,6
Automotive glass
37,6
Axles
107,8
Silencers/exhausts
8,6
Tyres
105,9
Batteries
6,3
Engine parts
44,8
MCV/HCV vehicles
5,4
Brake parts
44,4
Brake parts
3,2
40,7
Filters
3,2
MCV/HCV vehicles
35,2
Tyres
2,4
33,6
1,8
Automotive tooling
32,1
Other
86,2
Other
425,2
75
TYPES OF CO-OPERATION
In view of the South African automotive industrys trade pattern, many opportunities of mutual benefit
exist for foreign companies to collaborate with South African automotive component suppliers. The
exporting link for the majority of the multinational automotive component manufacturers in South
Africa consists of the South African based OEMs and parent companies. Some of the locally owned
component manufacturers have also been successful in obtaining OEM business, while many others focus on exports of replacement parts. The integration into the global group of the South African
subsidiaries provides opportunities for business, produces synergies in several areas and accelerates the exchange of knowledge, which will enable the domestic subsidiary to be more competitive
in the global automotive environment. Consequently, component manufacturers using South Africas
competitive advantages seek contact with outside partners for market access, technology, process
know-how, production rationalization and other joint venture benefits. In addition, various other types
of industry co-operation to pursue include:

Technical collaboration in design of products, systems or production methods/layouts
Research and development
Supplier/customer relations
Joint production
Technology transfer
Licenses and patents
Marketing and co-operative promotion of projects and market sharing
Commercial representation
Franchising
Financing
Strategic alliance
Third country collaboration
GENERAL INFORMATION
76
South Africa had a vehicle parc (number of registered vehicles) of 9,8 million at the end of December, 2010 of which 5,6 million or 56,9% comprised passenger cars. The South African automotive
industry incorporates the manufacture, distribution, servicing and maintenance of motor vehicles
and components. In terms of the trade which supports this industry, there are approximately 4 564
garages and fuel stations (with the majority having service workshops as well) plus a further 1 898
specialist repairers; 1 374 new car dealerships holding specific franchises; an estimated 1 410 used
vehicle outlets; about 304 vehicle component manufacturers, together with about 150 others supplying the industry on a non-exclusive basis; 1 588 specialist tyre dealers and retreaders; 483 engine
reconditioners; 192 vehicle body builders; 2 907 parts dealers and around 220 farm vehicle and
equipment suppliers.
South Africa was ranked 24th in respect of global vehicle production with a market share of 0,61%
in 2010. Significant investment programmes driven by export plans have been implemented by all
the OEMs since the commencement of the MIDP and capital expenditure by the OEMs from 1995
to 2010 amounted to R39,7 billion. Aggregate employment in the vehicle manufacturing industry in
2010 amounted to 28 128 persons at the end of 2010 whilst employment in the component manufacturing industry was of the order of 65 000 employees. Total employment in the trade area, namely in
the vehicle sales and vehicle maintenance and servicing field, amounts to about 200 000 persons.
Employment in the tyre manufacturing industry is of the order of 6 600 persons. The automotive industry exhibits a high multiplier effect due to the creation of opportunities in automotive and related
areas and maintains direct linkages with a large number of support services and SMMEs. Employment ratios vary from country to country, but generally for every worker in the manufacturing of a
motor vehicle there are at least two or more employed in used vehicle sales, servicing and repair.
SOUTH
AFRICAN AUTOMOTIVE INDUSTRY
OPPORTUNITIES AND CHALLENGES
The automotive sector, regarded as the leading manufacturing sector contributed, in total, 6,2% to
the countrys GDP in 2010. The positive developments and achievements in the South African automotive industry, since 1995, have been driven by a supportive automotive policy regime in the form
of the Motor Industry Development Programme (MIDP). The 2020 vision under the new Automotive
Production Development Programme (APDP) (to replace the MIDP from 2013 onwards), shared by
government and industry, is to double vehicle production from the 2006 levels of about 600 000 units
to 1,2 million units by 2020, with a much stronger development of the automotive component sector.
South Africas consideration as a sub-contracting hub for the automotive industry includes the following:

World class logistics suitable for import and export operations

Excellent infrastructure
Abundant and cost competitive labour
First world business sector
High quality office and business park facilities
Superior quality private schools and unmatched quality of life
77
78
Standard disclaimer
The trade data is based on eligible MIDP products. The AIEC cannot vouch for the accuracy of the
information obtained from the source. Due to certain limitations, Customs and Excise statistics cannot always distinguish between automotive components eligible in terms of the MIDP and non-MIDP
components. The main purpose of this trade data is to discern trends in exports and export destinations as well as imports and countries of origin.
79
Published by AIEC
PO Box 40611
Arcadia, 0007
South Africa
www.aiec.co.za
80

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AUTOMOTIVE

Produced and compiled by

Main automotive trading partners.......................................................................................................................................... 70

Automotive Industry Export Council

Brazil, Russia, India, China and South Africa

Completely Knocked Down

Common Market for Southern and Eastern Africa

Consumer Price Index

The Department of Trade and Industry

East African Community

Gross Domestic Product

Mercado Comn del Sur - Common Market of South America

Motor Industry Development Programme

National Association of Automotive Component and Allied Manufacturers

National Association of Automobile Manufacturers of South Africa

North American Free Trade Area

Original Equipment Manufacturer (Vehicle Manufacturer)

Producer Price Index

Southern African Development Community

SARS South African Revenue Service

SOUTH AFRICA THE COUNTRY

Key Indicators 2010

R2 662,8 billion (at current prices)

Automotive industrys contribution to GDP

GDP Growth rate

GDP per capita

CPI (annual average)

PPI manufacturing (annual average)

Total export value

Main export destinations

China, USA, Japan, Germany, UK

Main commodities exported

Gold, bituminous coal, iron ore, platinum, ferro-chromium,

Total import value

Main countries of origin

China, Germany, USA, Japan, Saudi Arabia

Main commodities imported

Automotive exports as % of total SA exports

11,9% (R69,5 billion)

Automotive imports as % of total SA imports

17,1% (R100,2 billion)

SOUTH AFRICA COMPARATIVE ADVANTAGES

first five positions in regional rankings.

Raw material availability

Emerging market cost advantages

First world production testing

Flexible production capability

APDP key elements

Automotive clusters key features 2010

11,19 million (22,4%)

6,74 million (13,5%)

10,65 million (21,3%)

5,22 million (10,4%)

Motor vehicle parc as %

Passenger car sales as

Richest province in the country

Ford Engine plant

Countrys second largest provincial

Other key features

One of the worlds greatest tourism

LCV sales as % of total

Source: NAAMSA/Response Group Trendline, NAACAM, Statistics South Africa