FIRING UP A VITAL ECONOMIC ENGINE
south Africa’s automotive industry can finally start its engine. Albeit still on idle, vehicle production is gradually beginning to ramp up and dealerships have at last been given the green light to trade.
The automotive industry is vital to the economic health and welfare of SA and her citizens. The industry, both manufacturing and retail, contributed R500bn in revenue to the country last year (2018: R503bn) and 6.9% to GDP (4.4% manufacturing; 2.5% retail). It is also responsible for around 457 000 jobs.
It is a manufacturing mainstay for SA’s economy, accounting for 30.1% of manufacturing output, with vehicle production last year rising to 631 983 units while exports of vehicles (387 125) and automotive components accounted for R201.7bn, according to the National Association of Automobile Manufacturers of South Africa (Naamsa).
But the coronavirus lockdown slammed the brakes on vehicle manufacturing, sales and exports. The toll has been heavy, the effects of which will resonate for some time to come.
“The industry’s significant 6.9% contribution to GDP
