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Extended DLTC hours for Gauteng

Testing centres in Gauteng have extended hours of operation for expired drivers' licences.

On the road during lockdown

Here's what motorists should know.

WATCH | Grey imports growing by 30 000 per annum says Naamsa

2020-10-06 12:00

NEW CAR SALES: Naamsa reports a drop in vehicle sales in May 2017. Image: Quickpic

• The National Association of Automobile Manufacturers of South Africa says there are more or less 300 000 illegally imported cars in the country. 

• The number of grey imports in South Africa increases by 30 000 per year says Naamsa. 

• Naamsa says the grey imports represent 7.5% of the total market of vehicles sold in the country.

The National Association of Automobile Manufacturers of South Africa says it deeply concerned about the impact of grey imports on the local economy.

The organisation says there are more or less 300 000 illegally imported cars in South Africa, the country has a total car parc of 12.7-million cars.

READ | September sales are encouraging, but 30 000 vehicles for export remain in SA

Alarming rise in grey imports

The number of grey imports is growing at 30 000 vehicles per annum which has an effect on new car sales says Naamsa. Based on the suite of taxes applicable to new car sales locally, Naamsa estimate that this is costing the fiscus R3.8-billion per year.

Grey imports have a negative impact on the automotive ecosystem because they rob the fiscus of the much needed tax revenue; they hurt job creation; they aid criminal activity; and undermine road safety initiatives.

This is put into context when one looks at the monthly average new vehicle market for 2020 is 28 500 units. Grey imports represent an extra months sales per annum, which represents 7.5% of total market and would be the third largest brand in SA by volume.

ford,Ford Ranger production line

Image: Ford

New vehicle sales

Reflecting on the new vehicle sales statistics for the month of September 2020 Naamsa confirmed that aggregate domestic sales at 37 403 units continued to improve in line with lower lockdown levels over recent months but still reflected a decline of 11 737 units, or 23,9% from the 49 140 vehicles sold in September last year.

Export sales at 28 704 units also registered a fall of 7566 units or a decline of 20.9% compared to the 36 270 vehicles exported in September 2019.

Overall, out of the total reported industry sales of 37 403 vehicles, an estimated 33 080 units or 88.4% represented dealer sales, 5% sales to government, an estimated 3.7% represented sales to the vehicle rental industry, and 2.9% to industry corporate fleets, says Naamsa. 

Compiled by Sean Parker

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