South Africa’s exports of cars and vehicle components rose by almost a fifth to a record 207.5 billion rand ($13 billion) last year, partly driven by shipments of catalytic converters.
The increase means the automotive industry lifted its contribution to the country’s gross domestic product to 4.3% from 4.1%, according to a report by the Automotive Industry Export Council. It suggests the sector, which accounts for 12.5% of South Africa’s export value, is recovering from damage caused by coronavirus restrictions that shuttered borders and disrupted supply chains.
Despite the improvements, the growth in the domestic industry has yet to return to pre-pandemic levels, Norman Lamprecht, the council’s executive manager, said in a statement. Ongoing Covid-19 supply-chain disruptions, shortages of stock and rising energy and transport costs mean the sector that employs more than 78,000 workers will continue its stop-start recovery this year, he said.
Domestic sales of new vehicles in April were also hit by the devastating floods in South Africa’s KwaZulu-Natal province that disrupted port operations and rail and road freight. While total sales grew 4.3% from a year earlier, it fell by 26.5% from the previous month.