Financially strained South Africans are increasingly looking away from premium cars from brands such as Audi, BMW, and Mercedes-Benz. This is because South Africans are choosing to avoid luxury cars and instead buy the new wave of Chinese vehicles entering the market. Various industry stakeholders and banks have noted that this decline is due to economic challenges, high interest rates, and escalating fuel costs. National Automobile Dealers Association (NADA) has noted a trend of consumers downsizing and turning to the growing number of Asian participants—particularly Chinese brands—which are making a significant impact in the market. The buying-down trend can be seen in the strong growth of sales from cheaper brands such as Suzuki and popular Chinese brands, including BAIC, Beijing, Chery, GWM, Haval, Jaecoo, and Omoda. This shift has hit premium manufacturers such as Audi, BMW, Mercedes-Benz, and Volvo. (Source)
King Price Insurance compiling reported incidents of hijackings from January 2021 to April 2023, put together a list of 10 car brands and models that were the least hijacked cars within their footprint. These cars, as outlined by King Price and in no particular order: Audi Q3, Chery Tiggo 4 Pro, Ford Fiesta, Ford Figo, Hyundai Creta, Nissan Almera, Nissan Magnite, Subaru Forester, Suzuki Vitara, Renault Clio. (Source)
Transnet, the state freight rail and ports company has faced withering criticism from carmakers to coal and iron ore miners as its deteriorating rail service has forced an increasing number of commodities and cars to be transported by trucks. The head of Volkswagen’s South African unit has said car companies are in talks with Transnet to improve the line and run privately-operated trains on it. In response to queries Transnet said it’s in talks with the government and funders “to expand the Southern Corridor rail network” to add three 50-wagon trains for use by automotive companies daily between Port Elizabeth in Gqeberha and Gauteng. Later, the state-owned company said, it would expect private companies to invest in rail infrastructure and trains to boost the service. Companies such as VW and Isuzu Motors currently rely almost entirely on trucks to get their vehicles from their plants near Gqeberha to Gauteng, South Africa’s biggest car market. Companies with plants in Gauteng, such as Ford Motor Co. and BMW AG, could use the line to move cars to the port in the coastal city as an alternative to the congested terminal in the city of Durban.
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Tesla has officially shifted its corporation to Texas from Delaware, according to paperwork filed with the Texas secretary of state’s office. The move unites the company’s legal home with its physical headquarters, which have been in Austin for years. The paperwork was submitted, following a vote by Tesla investors in favor of the departure from Delaware. Elon Musk, Tesla’s chief executive officer, initiated the move in January after a Delaware judge voided his roughly $56 billion compensation package, the largest ever given to a US corporate executive. Shareholders on Thursday also reapproved the pay plan, although the vote does not guarantee he will get his stock options, given the judge’s decision. Afterward, Musk offered outlandish predictions that he can enrich shareholders all over again with the company’s robot-making effort.
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Mercedes-Benz SA is to start a consultation process regarding the restructuring of its manufacturing operations which could affect about 700 jobs at its East London plant. The company said that in recent years, the automotive industry had faced several challenges that had also affected MBSA and its suppliers. Those included deteriorating macroeconomic conditions and prolonged port challenges. The section 189 consultations will involve discussions regarding the restructuring of its manufacturing operations, transitioning from the current 3-shift model to a 2-shift model.
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Manufacturing production increased by 5,3% in April 2024 compared with April 2023. The following divisions made the largest positive contributions: petroleum, chemical products, rubber and plastic products, wood and wood products, paper, publishing and printing, basic iron and steel, non-ferrous metal products, metal products and machinery, food and beverages, motor vehicles, parts and accessories and other transport equipment.
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The SACCI’s Business Confidence Index (BCI) dipped by 5.8 points in April 2024 to 108.9, and further to 107.8 in May 2024 – a decline of 6.9 points over the two months. The formation of the new government, given the election results, will largely determine the future course of business confidence. The advent and outcome of the national and provincial elections near the end of May 2024 had a notable effect on business confidence during April and May 2024. The decrease in overseas tourists and the decline in merchandise import volumes particularly weighed on the BCI in May, while the main but modest positive impacts came from merchandise export volumes and new vehicle sales. Over the year to May 2024, the SACCI BCI increased by 0.9 points to 107.8 from 106.9 in May 2023. Inward tourism and the improved rand exchange rate had the largest positive year-on-year impact on the SACCI BCI in May 2024. Positive effects also came from the higher global price of precious metals and lower inflation. The almost unchanged year-on-year SACCI BCI suggests a probable regressive business climate due to possible unwarranted political developments. Political developments are of special concern given their potential effect on economic policy and the business climate.
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