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08/08/2024

The African vehicle industry was expected to boom over the next 15 years, with sales of about three- to five-million vehicles across the continent, Volkswagen Group Africa chair and managing director Martina Biene said.

Published in The Herald (South Africa) on 8 August 

By Brandon Nel 

 

Picture: FREDLIN ADRIAAN

MOTORING MATTERS: Volkswagen Group Africa’s chair and managing director Martina Biene was the guest speaker at an NMU lecture on Tuesday

Biene made it clear that the company was not moving its operations to Egypt, despite swirling rumours.

She was the guest speaker at the Govan Mbeki lecture hosted by Nelson Mandela University’s Centre for the Advancement of Non-Racialism and Democracy (Canrad).

The two-hour lecture, hosted at NMU on Tuesday night, was facilitated by eNCA producer Slindile Xaba.

Biene said the automotive industry acted as an important engine for jobs and economic growth in several countries.

“In SA alone, the industry affects close to one-million jobs,” she said.

“This includes original equipment manufacturers, suppliers, component manufacturers and logistics providers.

“The industry is responsible for 5% of South African GDP.”

She said by 2035, between three- to five-million vehicles would be sold in Africa, compared with 1.2-million at present.

“Sub-Saharan Africa, with a population of over a billion, has a vehicle penetration rate of only three vehicles per 100 people, compared to the world average of 18.2.

“In 2023, only 100,000 new vehicles were sold in Sub-Saharan Africa. This is likely equivalent to two months of sales in the Southern African market.”

In contrast, Biene said onemillion used cars were imported into Sub-Saharan Africa last year.

“The African Association of Automotive Manufacturers (AAAM), of which I am president, is actively lobbying governments across the continent to stimulate the new vehicle market.

“This includes limiting or banning used car imports to create demand for new vehicles, as well as lobbying for the introduction of cleaner fuels and automotive policies.”

She said AAAM was already hard at work to improve standards and harmonise regulations across the continent.

“The objective is to create an integrated market for the trade in goods and services as well as the free movement of people and capital,” she said.

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