Key takeaways from naamsa’s quarterly business conditions review

On 21 February, naamsa released its quarterly review of business conditions for the South African motor vehicle manufacturing industry, during the fourth quarter of 2022, as submitted to the Director-General of the Department of Trade, Industry and Competition.

Markus winkler Ir Rb SND5 E Uc unsplash2

Some of the areas the document covers include industry vehicle sales, export and import statistics for 2014 through to 2022, and current projections for 2023 and 2024.

Here are the key features regarding the Fourth Quarter of 2022:

- New vehicle sales increased by 16.0% compared to the corresponding quarter in 2021 but only by 0.1% compared to the previous quarter 2022, highlighting the above expectations performance in 2022 but at the same time the impact of supply chain disruptions and economic pressures on the new vehicle market;

- New energy vehicle [NEV] sales by 15 industry brands increased by 66.0% from 953 units in the third quarter to 1,583 units in fourth quarter 2022 and year-on-year by a significant 431.7% in 2022;

- Fourth quarter 2022 industry employment reflected a decline of 823 jobs to reach 33,477 positions at end December 2022 but still reflected an overall positive performance for the full year;

- Average industry capacity utilisation levels during fourth quarter 2022 continued to recover from the severe impact of the KwaZulu-Natal flooding disaster earlier in the year despite a Transnet strike and consequent force majeure declared along with persistent load-shedding during the quarter;

- Aggregate capital expenditure by the major vehicle manufacturers in 2022 amounted to R7.1 billion, linked to new generation model investments;

- Fourth quarter 2022 domestic vehicle production reflected an increase of 25.7% compared to the corresponding quarter in 2021, with all segments reflecting growth in line with higher domestic demand and export growth;

- During fourth quarter 2022, vehicle exports increased by 31.1% to 88,394 units compared to the 67,410 units exported in the corresponding quarter in 2021, despite a deteriorating global economic environment.

More Industry News stories