NAAMSA has attributed the decline in South Africa’s exports to “replacement of a South African large -scale OEM model, the stricter emission regulations in the European Union, and the influx of low -cost electric vehicles in China.” As South Africa’s largest automobile export market, the European Union has been gradually implementing stricter carbon emissions regulations to reduce carbon dioxide emissions of cars.
Naamsa CEO Mikel Mabasa said that the European automobile market is weak because the EU’s economic growth rate in the first three quarters of this year is 0.3%, and Germany is expected to decrease by 0.2%of its annual economic growth rate.
Nonetheless, Naamsa is still optimistic about South Africa’s export prospects. Naamsa said: “The relaxation of the main auto export market monetary policy may once again promote the turnover of the car export again in the medium period.”
In addition, when the export volume of South Africa has fallen sharply, the domestic car sales in South Africa have reached the highest monthly level since this year. According to data from Naamsa, in October this year, it was mainly due to the strong performance of passenger car sales (the sales growth rate in October reached the highest point in the past five years), and the total sales volume of new domestic cars in South Africa was 47,942 units, compared with 45,418 vehicles in the same period last year last year. Increased by 5.5%.
Mikel Mabasa said: “Passenger car sales is a key indicator of consumer confidence. In September this year, South African consumer inflation rate slowed to 3.8%, which has slowed down for four consecutive months. The lowest level, so the family may start to feel a little loose in terms of consumption. “
At the same time, Mickel Mabasa pointed out that the potential interest rate cuts in the next 18 months may gradually reduce the financial burden of South African consumers and enterprises. He said: “Although the direct impact of these positive signs is still relatively small, the impact and momentum of accumulated accumulation in the future are expected to be transformed into a stronger sales volume in South Africa in the middle and long term.”