OVERVIEW
Automotive Vehicle exports are boosting the South African economy.
SECTOR INSIGHT Giant vehicles for defence, construction and mining are a growth sector.
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outh Africa’s automotive sector continues to excel in production volumes and exports. Another first was achieved in 2018 when the country’s vehicles were sent to a total of 155 countries. Vehicle and automotive component exports in 2018 brought in R178.8-billion, fully 14% of South Africa’s total export basket. Automotive and automotive components make up 30.2% of total manufacturing output and about 7% of the nation’s Gross Domestic Product (GDP). Two of the newest production lines are up and running at BMW’s Rossyln plant (BMW X3 SUV) and in Uitenhage where Volkswagen has added an additional production line to produce more Polos. All of the country’s major manufacturers such as Mercedes-Benz (East London), Toyota (Durban) and Ford (Port Elizabeth and Tshwane) have invested large sums in increasing production or in taking on new vehicle models. The purchase by the United Arab Emirates of an armoured personnel carrier made by defence and aerospace company Paramount Group at a trade show in early 2019 was a reminder that the South African automotive industry extends beyond sedans and pickup trucks (or bakkies as they are known in South Africa). The Mbombe 4 (pictured) is the third in a series of combat vehicles produced by Paramount. Paramount South Africa has been created so that it can participate in the local market. Gauteng also has DCD Protected Mobility which manufactures armoured cars in Boksburg, branded as SOUTH AFRICAN BUSINESS 2020
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Vehicle Mounted Mine Detectors. In nearby Benoni, BAE Systems OMC designs and manufactures protected vehicles. Bell Equipment, which originated in Richards Bay and still has a large manufacturing facility there, now claims 50 000 machines operating in over 80 countries around the world. Its articulated dump trucks supply hundreds of mining operations and it has over 100 other products. Bell is in the process of transferring production of its truck range to its factory in Germany, which will double in size to accommodate the growing demand for trucks in Europe and America. The shift will not affect employment levels at the Richards Bay site because Bell started assembling Kamaz heavyduty trucks in 2019 for the African market. Kamaz, a Russian brand that has won 14 Dakar rallies, is known for its reliability in tough conditions. Bell’s intention is to increase the percentage of local components over time. Dezzi Equipment also makes loaders, dump trucks and haulers in KwaZulu-Natal, 300km south of Richards Bay at Port Shepstone.
