MOTORING NEWS - The motor industry improved its annual trade balance considerably last year through a combination of record exports and slower import growth. But is this the first surplus since the automotive policy was introduced more than 20 years ago?
A table in the Automotive Export Manual, produced by the Automotive Industry Export Council, calculates that vehicle and component manufacturers participating in the government's incentive-driven Automotive Production and Development Programme (APDP), posted a R5.3b surplus last year. This was achieved through R151.5bn of exports, outweighing imports of R146.2b.
After-market parts
Record vehicle exports of 333,082 cars and commercial vehicles earned R101.9b, while imported vehicles cost the country R61.6b. The R40.3b surplus more than offset the R35b deficit for original equipment components: R84.6b of imports and R49.6b of exports.
After-market parts
Record vehicle exports of 333,082 cars and commercial vehicles earned R101.9b, while imported vehicles cost the country R61.6b. The R40.3b surplus more than offset the R35b deficit for original equipment components: R84.6b of imports and R49.6b of exports.
However, the only imported components included are those destined for vehicle production lines. It does not take account of R50.5b in after-market spare parts brought into SA by imported car brands and local producers.
The after-market parts were excluded from the council's statistics from 2013 - when local customs union partners Botswana, Namibia, Swaziland and Lesotho were reclassified as export markets. The result was an instant year-on-year slashing of the deficit, from R42.3b to R24bn, which shrunk to R15.8b last year.
Critics of the components decision say after-market parts are a legitimate part of automotive trade and their absence distorts the picture. In the new annual, a second table includes them, turning the R5.3b surplus into a R45.2b deficit.
Including after-market parts, total automotive trade between SA and its global partners amounted to R348.2b. SA exported a record R151.5b of goods but imported R196.7b. The R45.2b deficit is a more than 27% improvement on the previous year's R62.2bn.
The after-market parts were excluded from the council's statistics from 2013 - when local customs union partners Botswana, Namibia, Swaziland and Lesotho were reclassified as export markets. The result was an instant year-on-year slashing of the deficit, from R42.3b to R24bn, which shrunk to R15.8b last year.
Critics of the components decision say after-market parts are a legitimate part of automotive trade and their absence distorts the picture. In the new annual, a second table includes them, turning the R5.3b surplus into a R45.2b deficit.
Including after-market parts, total automotive trade between SA and its global partners amounted to R348.2b. SA exported a record R151.5b of goods but imported R196.7b. The R45.2b deficit is a more than 27% improvement on the previous year's R62.2bn.
