Motor industry achieves record trade surplus of over R48bn

The SA motor industry achieved a record R48.2bn trade surplus in 2020 despite Covid19 playing havoc with traditional trade patterns. Exports of automotive components also set new highs.

The surplus, based on trade in new vehicles and components, blew away the previous record of R27.1bn set in 2019. Industrywide import and export values both crashed in 2020 but the fall in imports was more severe – R47.1bn, from R174.6bn to R127.5bn.

Exports fell R26bn, from R201.7bn to R175.7bn. They were bolstered by record shipments of platinum-based catalytic converters, which reduce vehicle exhaust emissions.

Most of the converters went to Europe, where many countries are introducing tough new automotive environmental standards. Partly aided by higher platinum prices, the value of converter exports grew from R20.36bn in 2019, to R26bn in 2020.

That, in turn, pushed up the total value of components exports from R53.7bn to a record R54.5bn. The figures are contained in the 2021 edition of the Automotive Export Manual, published on Friday by the government’s Automotive Industry Export Council.

Exports of Sa-made vehicles in 2020 plunged to 271,288 from 2019’s record 387,092. Values fell from R148bn to R121.2bn.

Despite this, export council executive manager Norman Lamprecht said vehicles and components still accounted for 13.9% of total SA exports.

Industrywide import and export values crashed in 2020 but the fall in imports was more severe