One of the hardest hit industries during the Covid-19 crisis is the automotive sector, with South Africa’s new vehicle sales for the month of May plunging by 68 per cent in and 98 per cent in April. The slowdown in car manufacturing and consumer purchasing power was due to the strict Covid-19 lockdown that was implemented by the South African government at the end of March. Joining CNBC Africa for more is Mike Mabasa, CEO, National Association of Automobile Manufacturers of South Africa.
The expansion of South Africa’s auto industry is central to the government’s economic development strategy but the coronavirus crisis has forced carmakers into survival mode and could push ambitious growth plans out of reach.
Tensions are building up between Namibia and National Association of Automobile Manufactures of SA. This after the country allowed car brand-manufacture, Peugeot to open an assembly plant there. Nico Vermeulen, Director of NAAMSA joins CNBC Africa for more.
Car manufacturers in South Africa include Ford, Volkswagen, Mercedes Benz SA, Nissan and Toyota, among others.