South Africa’s Vehicle Exports Achieve Record High in 2023

by | 18 Jan 2024 | International News, Local News, Logistics

South Africa’s vehicle export industry has once again proven its resilience, contributing significantly to the financial health and sustainability of domestic Original Equipment Manufacturers (OEMs). The Automotive Business Council’s annual review for 2023 highlights the sector’s remarkable performance despite global challenges such as geopolitical tensions, supply chain disruptions, inflationary pressures, and multi-year high-interest rates in major export markets.

In 2023, the country’s vehicle exports surged, reaching an impressive 396,290 units, marking a substantial increase of 12.7% compared to the 2022 figures of 351,785 units. This growth surpassed the previous record of 387,092 units set in 2019, showcasing the industry’s resilience in the face of adversity.

Council CEO Mikel Mabasa emphasized the crucial role of vehicle exports, revealing that two out of every three vehicles manufactured in South Africa are destined for international markets. This not only supports higher production volumes but also contributes to increased employment levels, as jobs in the vehicle manufacturing sector are closely tied to production figures.

Despite challenges such as increased load-shedding and logistical hurdles at ports and the railway network, the sector has demonstrated its ability to adapt and thrive. The positive momentum in vehicle exports in December 2023, with 26,612 units exported, represents a 1.2% increase compared to the same period in 2022, culminating in a record-high for the entire year.

Looking ahead, Mabasa anticipates that the global economic outlook might pose challenges due to inflation risks, recent geopolitical conflicts, and the impacts of climate change. However, the vehicle export momentum is expected to remain on an upward trajectory, indicating continued growth for the industry in the coming year.

In this dynamic landscape, companies like SAVIE (South African Vehicle Import and Export) play a pivotal role in assisting consumers and contributing to the country’s economic prosperity. Specializing in importing and exporting vehicles to and from South Africa, SAVIE offers comprehensive vehicle services that align with the industry’s upward trend. By facilitating seamless transactions and navigating the complexities of international trade, SAVIE stands ready to support individuals and businesses looking to harness the benefits of South Africa’s flourishing vehicle export market. As the country’s vehicle exports thrive, SAVIE remains a reliable partner for those seeking expert assistance in navigating the global automotive trade landscape.