Out-and-out pres­sure

Fall­out from Don­ald Trump’s trade war rhetoric is not help­ing ex­porters in an en­vi­ron­ment that is al­ready volatile

Financial Mail - - SPECIAL REPORT -

Africa may be the even­tual goal but the rest of the world, no­tably Europe, re­mains the past, present and im­me­di­ate fu­ture for mo­tor in­dus­try ex­porters. Ger­many alone ac­counts for more than a quar­ter of SA ex­ports of ve­hi­cles and com­po­nents. Add Bel­gium, the UK, Spain and France — all among the top 10 des­ti­na­tions — and the share rises to more than 45%. Throw in the rest of the Euro­pean Union (EU) and it’s just over 52%. Africa, by con­trast, swal­lows just 18%.

The fig­ures are con­tained in the 2018 Au­to­mo­tive Ex­port Man­ual, pub­lished by the Au­to­mo­tive In­dus­try Ex­port Coun­cil (AIEC). The doc­u­ment shows that in 2017, the SA mo­tor in­dus­try ex­ported R164.9bn of goods. Of those, R85.9bn went to the EU, R19.9bn to North Amer­ica and R29.7bn to Africa. In Asia-pa­cific, Ja­pan was the des­ti­na­tion for R7.3bn, Aus­tralia R4.9bn and South Ko­rea R3.1bn.

The bias to­wards Europe is no sur­prise. Ger­man car­mak­ers Volk-

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