South Africa aims to export an estimated 205,500 vehicles in 2006, up from 139,912 in 2005, and expects exports to grow to 240,500 in 2007, an industry body reportedly said on Tuesday.
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Reuters noted that auto production is the second-biggest industry in South africa’s manufacturing sector, which accounts for more than 16% of its economy, the biggest on the continent.
The National Association of Automobile Manufacturers of South Africa (NAAMSA) on Tuesday told the news agency that the projected export figure for 2006 represented a 47% growth over 2005, powered mainly by rising exports of light commercial vehicles.
Vehicles now comprise nearly 7% of the country’s exports.
Reuters noted that sustained strength in the rand has taken a toll on South Africa’s exports, eroding the profits of some top companies and prompting job cuts. The currency depreciated in 2005 but has rallied in the past few weeks, scaling an 8-1/2 month peak of 5.925 to the dollar on Monday.
