India Accounted For Over 43% Vehicle Imports Into South Africa In 2020

The year 2020 was a challenging one for each one of us. The pandemic had affected several industries, and the auto segment was no exception here. In fact, India is still facing an onslaught of the second wave of the COVID-19 pandemic. The entire country went into lockdown which was announced by the Indian government to contain the spread of the COVID-19 pandemic, affecting several industries. Despite several restrictions and limitations in 2020, India has topped vehicle imports into South Africa. As reported by PTI, India was the top country of origin for vehicle imports into South Africa despite the COVID-19 lockdowns and overall declines in vehicle sales last year.

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According to an Automotive Export Manual report released by the Automotive Industry Export Council, India has been reputed as a production hub for entry-level and small vehicles by several global brands, and the majority of the vehicles imported from India came under these categories.

Over 87,000 units that were exported by India accounted for 43.2 per cent of total passenger cars and light commercial vehicles imported by South Africa. However, the Volkswagen Polo Vivo was the only vehicle that was manufactured locally in South Africa in 2020. Notably, nine out of the top 10 selling vehicles last year were South African-built passenger cars and light commercial vehicles. The South African customers are reportedly more inclined towards pick-ups than passenger cars, as they cater to both commercial and leisure vehicle applications.

Moreover, the Mahindra Pik Up has been the fastest growing range of pick-ups (bakkies) in the last three years. Rajesh Gupta, CEO of Mahindra SA said to PTI, "There is a strong and growing bond between India and South Africa. Not only is trade between the two countries strong, but South Africa is a perfect springboard for Indian products into the rest of the continent."

He further said, "This is especially true for our range of Pik Up models, which is assembled locally and exported to countries in the Southern African Development Community."

The Mahindra Pik Up has been the fastest growing range of pick-ups (bakkies) in the last three years.

Also Read: Made In India Nissan Magnite Goes On Sale In South Africa​

Because of the COVID-19, the South African vehicle market witnessed a massive decline in exports from 3.87 lakh units in 2019 to 2.71 lakh units in 2020. This decline of about 1.15 lakh units also impacted the export value, which reduced to R121.2 billion from R148.0 billion in 2019. Nevertheless, the report is very much optimistic about the automotive industry for the current year, despite the COVID-19 crisis.