Metair expects aftermarket & non-automotive sectors growth

According to Loock it was important for local original equipment manufacturers (OEMs) to overcome the continued high levels of imports, which was an unintended consequence of the government's Motor Industry Development Programme (MIDP).

Metair's aftermarket-business manufactures and distributes automotive parts including batteries, brake pads, shock absorbers, lights, radiators and air conditioners, which are all used to service vehicles. Its non-automotive business handles products related to the telecoms, utility mining and retail and materials handling sectors. The company's results showed that its nonautomotive revenue recovered well, rising 25% to R441-million, with profit increasing by 64% year-on-year to R59-million. Its aftermarket business' turnover was flat at R893-million.

"OEMs can take advantage of the growth in imported vehicles in South Africa," Loock said. He attributed the reported and expected continued growth in the original equipment manufacturing industry to the government's Automotive Production and Development Programme (APDP), which would be phased in by 2013. "The APDP provides certainty for the OEM industry until at least 2020 and the industry is optimistic about the potential for future growth and South Africa as a manufacturing destination," Loock said.

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