Tuesday, September 17, 2024
By Kamal Swami
India Stays At Top Position In Exporting Vehicles to South Africa
According to recent reports India emerged as the leading country importing vehicles to the South African automotive industry since 2013. During the last decade, India has been working as a hub for small and entry-level vehicles, dominating the Indian automotive industry. Auto manufacturers like Tata and Mahindra have established their manufacturing units in South Africa. Interestingly, the employees of Mahindra & Mahindra call South Africa their second home, with Mahindra’s production unit in Durban.
Talking about the South African automotive industry, both India and China have been placed in the top 10 suppliers of vehicles, since 2010. Where China continues to retain its second position as a vehicle importing country to China since 2022, due to the interest of South African consumers in affordable vehicles, China is also the major source of importing aftermarket auto parts.
The report also reveals that from 2023, South Africa’s automotive trade balance remained heavily shifted in favour of India. The import-to-export value ratio for India stood at 97.7 to 1, while China’s ratio was 56.8 to 1, and Brazil’s ratio at 2.6 to 1. The report also focussed on the need for BRICS nations to find opportunities for collaboration, share experiences, and build capacity in automotive trade and investment.
The entrance of South Africa in BRICS (Brazil, Russia, India, China and South Africa) since 2010 has helped in strengthening its status and economic relations with these four countries. The exports from South Africa to these four countries increased consistently in 2010 and 2011 but witnessed a decline in exports to India between 2010 and 2023. However, the export figures for the other three countries Brazil, China and Russia remained negligible compared to revenue of Rand 270.8 billion earned by South Africa in 2023.
Regarding automotive imports, the report notes significant increases from China, India, and Brazil between 2010 and 2023. This trend highlights a shift in the global automotive industry, with these countries becoming key suppliers to the South African market.
