Automakers seen investing US$8.2bn rand in South Africa this year: Naamsa

Automakers seen investing US$8.2b rand in South Africa this year: Naamsa - [,d.ZGg&psig=AFQjCNGL4I0jOK0IHE_-fyUdF1q7HNgyLg&ust=1487162963744263]

South Africa’s automotive sector capital expenditure is projected to rise to R8.2bn rand (S$874.71m) this year from R6.4bn in 2016, the auto industry body said in a document seen by Reuters.

The National Association of Automobile Manufacturers of South Africa said in a memo dated Feb 7 that the sector’s estimated capex was based on details supplied by seven major car makers and data from various sources relevant to Beijing Automotive International Corporation.

Car manufacturers in South Africa include Ford, Volkswagen, Mercedes Benz SA, Nissan and Toyota, among others.

The automotive sector, South Africa’s largest manufacturing industry, expects a slight increase in new vehicles sales this year as economic growth gains pace thanks to commodity price rises and a recovery in farming.