Catalytic converters fuel record South Africa car-sector exports

Suggesting the sector is recovering from the damage from Covid-19 restrictions.
Image: Krisztian Bocsi/Bloomberg

South Africa’s exports of cars and vehicle components rose by almost a fifth to a record R207.5 billion last year, partly driven by shipments of catalytic converters.

The increase means the automotive industry lifted its contribution to the country’s gross domestic product to 4.3% from 4.1%, according to a report by the Automotive Industry Export Council. It suggests the sector, which accounts for 12.5% of South Africa’s export value, is recovering from damage caused by coronavirus restrictions that shuttered borders and disrupted supply chains.

The value of vehicle exports rose 14% to R138 billion in 2021 and shipments of catalytic converters increased more than a third to a record R35 billion, the report showed.

The emissions-control parts made up more than half of all automotive component shipments.

Despite the improvements, the growth in the domestic industry has yet to return to pre-pandemic levels, Norman Lamprecht, the council’s executive manager, said in a statement. Ongoing Covid-19 supply-chain disruptions, shortages of stock and rising energy and transport costs mean the sector that employs more than 78,000 workers will continue its stop-start recovery this year, he said.

Domestic sales of new vehicles in April were also hit by the devastating floods in South Africa’s KwaZulu-Natal province that disrupted port operations and rail and road freight. While total sales grew 4.3% from a year earlier, it fell by 26.5% from the previous month.

© 2022 Bloomberg L.P.

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