South African auto manufacturers sold a record number of vehicles in 2004, with overall sales jumping by 22% despite the negative impact of the strong rand, an industry body said on Thursday.
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Growth in the key sector, which makes up about 13% of South Africa’s exports, was expected to continue in 2005 with a 10% rise in overall sales, the National Association of Automobile Manufacturers of South Africa (Naamsa) said, according to Reuters.
Total new vehicle sales climbed to 449,603 units in 2004 from 368,470 in 2003, Naamsa said in a statement cited by the news agency. When sales of vehicles not reported in detail by Naamsa were included, the total rose to more than 481,000 – an all-time record.
“In fact during 2004, South Africa was one of the best performing (auto) markets internationally,” Naamsa told Reuters.
The body reportedly said that export growth performance for the sector in 2005 may be challenged by global overcapacity and strength in the rand, which appreciated by 18.5% against the dollar in 2004 – its third consecutive year of gains. But it said favourable economic fundamentals would continue to support the industry locally.
