South Africa: Crash and Burn – Motor Industry Takes R3 Billion Dent As Car Exports Slump 33 Percent After Riots and Transnet Cyberattack
ANALYSISBy Mfuneko Toyana
Data released by motor industry body Naamsa showed that car exports had fallen by 8,381 units to 16,931 units in July 2021, while 25,312 vehicles were exported in July 2020.
South Africa’s new car sales inched up by a paltry 544 units in June, a 1.7% increase compared to the same month last year, while exports tumbled by 33.1% as supply chains were crippled by weeklong riots, mainly in KwaZulu-Natal, stricter lockdown measures, and the cyberattack on ports operator Transnet that brought exports to a near halt.
Data released by motor industry body Naamsa showed that car exports had fallen by 8,381 units to 16,931 units in July 2021 compared with the 25,312 vehicles exported in July 2020. The association put the cost from damage during riots at R3-billion, adding to the mounting toll that could see overall gross domestic product slump by as much as 1% this year.
Car sales were crushed in 2020 after the government imposed a strict Covid-19 lockdown in late March, banning most consumer purchases with the exception of essential items.
Car sales, a forward indicator of consumer confidence as well as export performance, bounced back towards the end of last year and into 2021,…