South Africa Economy is expected to register minor growth in next two years at 1.1% for 2017, and 1.8% for 2018. 0.3% GDP growth was noted in 2016 from 1.3% in 2015. Some of the key economic drivers are commodity prices performance, controlled inflation, and household consumption demand play key role but creating jobs and increasing per capita income are still challenge for the country.<\/p>\n
South Africa is one of the most attractive markets for Global Automobile Industry. This is the biggest market in Africa region with two third of the regional market share. Most of the major OEMs is the presence with their latest product portfolio. There is enough space for all kind of vehicle like Premium, Budget, Used, Asian, European, and American brands.<\/p>\n
The Auto Market in South Africa is dominated by local manufacturers product. 2016 was a difficult year for South Africa Auto Industry. Vehicle Export showed some growth only. The market will start to improve in 2018. The total market size of Car and the Commercial vehicle is 550,000 units in South Africa. In 2006, it was more than 700 thousand units.<\/p>\n
South Africa\u2019s market share of global new vehicle production dropped to 0.63% in 2016 low from 0.68% in 2015.<\/p>\n
In the first quarter of 2017, the Auto market showed recovery but in the second quarter of 2017, the vehicle sales slide once again.<\/p>\n
Highest car sales were in 2006 with 210 thousand unit and the GDP growth was 5.6% the same year.The data show a total of 97,824 units car sold in 2016 in South Africa, marking a decline of 13% year on year (y\/y) from the 112,576 units sold in the same period a year before. Including export\u00a0336,370 unit cars sold in 2016 compared to 342,299 units in 2015. It is expected that due to improvement in market dynamics like the stability of interest rates, and positive movement in economic growth there will be minor growth in 2017. There could be some negative impact due to the volatility of exchange rates.<\/p>\n
Light Commercial Vehicle also touched highest sales number in 2016 with 159,469 units. Total LCV sales in South Africa hit 130,364 units in 2016, marking a 7.5% decline from 140,790 units in 2015. By 2018, it is expected that market size will be 140,000 units.<\/p>\n
While medium and heavy commercial vehicle (MCV) sales hit 26,997 units, down 11.40% y\/y, sales hit 30,470 units.<\/p>\n
Production Capacity:<\/strong><\/p>\n The production capacity utilization of car was 76%, Light Commercial Vehicle 77.9%, Medium Commercial Vehicle 88.5%, and Heavy Commercial Vehicle around 80%.<\/p>\n Report Highlights:<\/strong><\/p>\n