Industry to invest in the future at Joburg Motor Show 2011

After a three-year gap due to the FIFA Soccer World Cup in 2010, the industry will be pulling out all the stops to showcase not only its latest products and technology, but also its achievements and its plans for the years ahead.

While there will be plenty of glitz, glamour and shiny new paintwork at the Johannesburg Expo Centre, there will also be plenty of forecasting, industry assessment and analysis taking place as the automotive industry's top names gather for the event. One of the highlights will be the regular CAR Conference, hosted by the publishers of CAR magazine, Ramsay Media. Here members of the industry will gather with economists, the media and others to discuss not only the current role of the industry but also that of its future and its place in the global automotive marketplace.

Steady growth

"The South African car market has seen tremendous growth and decline during the last few years, in the passenger market as an example, sales grew by 85% between 2003 and 2006 and by 2009 had fallen back again by 46%," said David Powels, the president of the National Association of Automobile Manufacturers of South Africa (NAAMSA). Since 2009 we have seen steady growth with 2010 delivering a 31% increase and we are forecasting 19% year on year growth for 2011. Growth requires a well functioning economy with sound macro-economic policies which are in place. We now need the fairly strong recovery phase to continue for sustainable growth which will ensure future investment and the on-going viability of our industry".

"The motor manufacturing industry in South Africa has benefited from recent and on-going investments in new infrastructure and platforms, this will see bigger volumes of export for this and next year whilst benefiting the local market as well. However our competitive position can quickly be eroded by a less favourable exchange rate, rising cost inflation and unrealistic wage demands. Our challenge is to improve productivity right across the value chain, this means that simply improving productivity in our plants is not sufficient, improvements must come from within the entire supply chain as well. This will help to drive costs down enabling us to be to be more competitive against other low cost producing countries that are currently attracting new investments from the auto sector".

Spoilt for choice...1700 models

Looking forward to the show Powels added: "JIMS is an opportunity for the motor industry to showcase not only our current ranges, but introduce new models and show concept cars that would normally only be seen in print and reinforce confidence in the buying public about the strength and resilience of the industry in South Africa. Our customers have more than 1700 models to choose from and to be able to see many of these in one place at the same time and make objective comparisons can only be good for both the industry and the consumer.

"It's been three years since the last JIMS and the fact that there is such a high participation factor from the industry shows the confidence that the industry has in the show organisers, who are working hard at delivering an unprecedented show from a facility and quality perspective. It's well worth the investment as such a show should stimulate demand which will translate into retail sales."

In his role as the managing director of the Volkswagen Group South Africa, Powels added: "Our Group sees JIMS as an important motor show and as leaders in this market we are thus prepared to invest substantially in profiling our brands according to our international standards. We believe that we have set the benchmark over the last few years and will continue to do so to enable our customers to see not only our latest and future products but also to feel the power of our brands through the execution of our stands".

World turns to SA

As the industry looks forward to 2012 and beyond, it faces the challenge of cementing its position in the global supply chain. With the announcement of major contracts for the likes of BMW, Mercedes-Benz, Volkswagen and Ford it is clear that the global industry is continuing to turn to South Africa for high quality manufacturing and world class products. This is a scenario that needs to be maintained despite the prospect of rising inflation and production costs in the years ahead.

The Johannesburg International Motor Show is set to once again be a unique venue where all the stakeholders can gather to both applaud the industry's successes and plan for the future. It will be a showcase not only for its products but for its people and its facilities too. With its place on the international motor show calendar, JIMS is going to be not only the place to see the best that the industry has to offer, but also to understand what the who's who of the South African automotive marketplace have planned to invest in the future.