The inaugural Johannesburg International Motor Show takes place against an interesting backdrop: the South African industry is adapting to immense challenges on a retail level, while simultaneously preparing itself for the future under the recently-announced Automotive Production and Development Programme.
While there seems to be little for industry insiders to get enthusiastic about, consumers are revelling in what is undoubtedly a buyer's market and JIMS - which will take place at the National Exhibition Centre in Nasrec, Johannesburg, from Saturday 1 November through to Sunday 9 November 2008 - offers another opportunity for importers and manufacturers to interact with their customers.
No reason to panic
According to Doctor Johan van Zyl, president of the National Association of Automobile Manufacturers of South Africa (NAAMSA) and president and CEO of Toyota South Africa, the slump being experienced is part of the pattern that markets follow and certainly not a reason to panic.
“We all need to take a long term view and embrace the show as an opportunity to show off new models, future technology and current offerings,” says Van Zyl. “The show must go on because events like this do act as a stimulus.
“The customers are still out there, they still have aspirations and it is the function of the marketing departments of all the brands in the country to get close to these customers. The show is an opportunity to do this, whether the customer is a fleet owner, an individual, or the motoring media. It's a great opportunity for networking at various levels.”
Expo accreditation
He adds that JIMS is an event of international standing - one of only two motor shows in the Southern hemisphere accredited with the International Organisation of Motor Vehicle Manufacturers (OICA) - and attracts foreign media, industry executives from vehicle and component manufacturers as well as guest speakers for events like the Car Conference. About 1,500 overseas guests are expected.
JIMS also enjoys significant support from local government for the very reason that it provides an economic boost for Gauteng.
“JIMS is showing a level of maturity which suggests it is now very much part of the motoring landscape,” says Van Zyl. “It is definitely the automotive industry's crown jewel, and while the cost of financing, creating and manning a stand could be considered a luxury in the current climate, it is essential that the show is in keeping with its international status.”
Motorcycle representation
Maurice Britten, managing director of the Association of Motorcycle Importers and Distributors (AMID) agrees that JIMS presents tremendous opportunity: “The majority of AMID members will be represented at the show, and for our industry it is an ideal occasion to showcase our goods to a slightly different type of buyer and importantly, to those who would not necessarily attend a show dedicated exclusively to motorcycling.
“Through JIMS we hope to reach people who would not necessarily consider two wheels and our members are certainly capitalising on the interactive nature of the event, which will enable some of our members to demonstrate their products in the perfect environment.”
Britten says various segments of the motorcycle and all-terrain-vehicle (ATV) market are standing up well in the current climate. Significant growth is being experienced in the side-by-side two-seater quad market and small commercial motorcycles are also selling well as business users substitute four wheels for two where possible.
Social environment
For those in the truck and bus sphere, the focus of the show is different. For them it is both a branding exercise and an opportunity for industry people to interact in a more social environment says Frank Beeton, a motor industry analyst with Econometrix.
“The show isn't a selling tool because no one makes a multi-million Rand decision over a cup of tea,” he says. “However, the number of players in the truck market has grown dramatically and there has been a rapid increase in the number of truck and bus brands available in the country so it is still an opportunity to interact with industry insiders, and also provides a high-profile platform from which to announce big deals.”
Key industry truckers on show
The truck halls at the show are overflowing, with key industry players such as Nissan Diesel, Iveco, Hino, MAN, International, Mercedes-Benz, Isuzu, Mitsubishi Fuso and Freightliner all investing heavily in JIMS. The busy schedule for trucking and transport media on October 30 and 31 confirms the level of activity.
Beeton points out that the heavy truck market is still showing year-on-year growth on the back of infrastructure needs, though other commercial vehicle sectors are starting to feel the pressure.
“With NAAMSA's weight behind it, the show has become more relevant for the truck industry and with the clear indication that the new industry development programme is going to focus on production rather than just exports, it could have a marked effect on the trucking sector,” says Beeton. “The possibility exists that we may see developments such as joint ventures where the various brands working together in one assembly facility, and these changes could possibly bring the price of locally-assembled vehicles down.”
While all the details are yet to be ironed out, the truck industry seems to be excited about the basic framework of the Automotive Production and Development Programme, says Beeton.
“The show is an ideal opportunity for all the players in the business of transport to come together. And if you're going to be showing off shiny new bodywork, what better way than to put it under lights?”
