malvernmugadzikwa
Khulekani Magubane
Transnet says the popularity of Asian import vehicles such as Suzuki, Hyundai and Haval contributed to the entity’s Durban car terminal grow its transshipments by 55 percent since the previous year ended in March.
Transnet said in a statement that it also expects this trend to continue with the arrival of new models and new customers signalling a recovery for South Africa’s automotive industry.
In the statement Transnet said entry-level cars imported from the Asian continent have increased the Durban car terminal’s monthly targets by 34 percent at the end of March. Transnet acknowledged, though, that while it has managed to increase its volumes thanks to Asian imports, car dealerships are likely to struggle to with the supply on dealership floors.
“The growing popularity of makes such as Suzuki, Haval, and Hyundai in South Africa has contributed to the gradual automotive recovery following the delays and impact of the Covid-19 pandemic,” the statement said.
Transnet’s acting managing executive at Durban terminals Kwazi Mabaso said the entity attributed the upswing to a resurgence in a regional appetite for entry-level vehicles and second-hand cars.
“When compared to last year this time, transshipment volumes have also spiked as the appetite for second-hand cars within South Africa and neighbouring countries continues to grow,” said Mabaso.
Mabaso said that while the appetite for these vehicles was picking up, supply pressures meant that dealerships saw increasing stock volumes building up on their floors.
“Our main focus is always to ensure that there are no resource delays and for us to avoid stack availability issues at all costs – and we are doing just that as we anticipate growing volumes.”
The statement also cited recent National Association of Automotive Manufacturers of South Africa data which predicted a three-year recovery for the industry, starting with the 2021/22 financial year.
Bongani Ndlovu