We are passed half-way through 2019 and it has been an interesting year for the automotive sector. From the start of the year, new vehicle sales have struggled to get off the ground but the export market has seen considerable growth. Total sales of new vehicles in South Africa reached 46 077 units in July – a 3.7% decline compared to 2018.
Passenger car sales took the biggest hit with 29 477 sales recorded. This is 8.2% lower than the 2018 figures. However, sales of bakkies, minibuses, vans, trucks and buses have all improved their sales statistics. The biggest win for the industry is the export market – July export sales stood at 34 297 vehicles – a 22.1% improvement from last year.
“While the small interest rate cut during July was warmly welcomed by industry and consumers alike, it may take some more incentive from the Reserve Bank to jump-start the economy and entice consumers back into the new-vehicle market,” says WesBank executive head of motor division Ghana Msibi.
The chairperson of the National Automobile Dealers’ Association (NADA), Mark Domisse, agrees that an additional interest rate cut will help to improve new vehicle sales in South Africa. “In order for the rate cut to have any significant impact, it needs to be accompanied by robust structural reforms that deal with key underlying issues in the economy. We implore the government to aggressively pursue its efforts to stimulate growth,” he says.
Top-selling vehicles for around mid-year 2019
- Toyota Hilux
- VW Polo Vivo
- Ford Ranger
- VW Polo
- Nissan NP200
- Isuzu D-Max
- Toyota Hi-Ace
- Nissan NP300 Hardbody
- Hyundai i20
- Ford EcoSport
Top exporters for mid-year 2019
All three of these exporters are either direct or indirect customers of Formex Industries. We sell automotive components directly to these brands or to 1st Tier suppliers that deliver our parts to vehicle manufacturers.
Formex Industries is a metal forming and assembly company that supplies a variety of complex products to the local automotive industry and the export market. The company is based in the Nelson Mandela Bay metropole, South Africa’s foremost region for automotive manufacturing and export.
Formex specialises in producing components for the catalytic converter industry, as well as metal components and assemblies for the various vehicles. Formex aims to become one of the foremost suppliers for the South African automotive industry by 2035, aligning itself with the South African Automotive Masterplan (SAAM) which takes effect in 2020.
Formex is a Level 2 B-BBEE supplier with over 80% black ownership, of which more than 40% are black women. The company is owned by Deneb Investments Limited – a subsidiary of Hosken Consolidated Investments Limited (HCI) – one of South Africa’s biggest true B-BBEE companies listed on the Johannesburg Stock Exchange (JSE).