SA vehicle component exports grew 47%

Business day reported that South African vehicle component exports grew 47% to R18,5-billion last year, with 23 out of 31 categories showing increases.

This was disclosed in statistics published by the Automotive Industry Export Council earlier this week. The council said the rand's weakness "assisted" in the strong growth.

Catalytic converters were once again the dominant component export, rising to R8,9-billion from R4,6-billion.

National Association of Automotive Component and Allied Manufacturers executive director Clive Williams said catalytic converter exports have been doubling every year for the past two years.

The sharp growth in component exports is another success story for the government's Motor Industry Development Programme.

The programme is aimed at changing the focus of the local motor industry from domestic sales to export growth.

The council said the car local content vehicle industry's international trade deficit narrowed from R9,7-billion in 2000 to R8-billion last year on the back of the improved export performance.

Deloitte & Touche trade division partner Duane Newman said the rise in component exports was in part due to SA becoming more integrated into the global vehicle supply network.

Newman said another factor were several large vehicle export projects coming to fruition, resulting in component exports rising with vehicle exports.

Walker said that in spite of the access to the US market granted under Africa Growth Opportunity Act (Agoa) the US was still difficult to penetrate because of the nontariff barriers. Despite that, he said some companies like Dorbyl have managed to do well there.

He and Newman said future growth would come from established markets in Europe, but said there were projects being developed to take advantage of Agoa.

Delta Motor Corporation plans to export components to the US.

Earlier this year its contract to supply R76-million worth of car jacks to General Motors' North American operations was extended for an additional five years.

Exports to the US grew to 12,1% from 9,5% as percentage of total sales. Catalytic converter exports to the US rose from R749,2-million to R1,4-billion. Seat part exports also showed strong growth, rising to R2,39-billion from R1,92-billion.