September 2023
WWW.AUtOmObIL.CO.ZA
tHe DeepeSt bUSINeSS reACH INtO tHe SA retAIL mOtOr INDUStrY
SAprA DrIVeS SUStAINAbLe GrOWtH
KeY treNDS AFFeCtING tHe
SA AUtOmOtIVe SeCtOr
pOrSCHe CeLebrAteS 60 YeArS OF 911
CONteNtS
COLUmNS
03 . Driver’s Seat: Jakkie Olivier, CEO of the RMI
30 . Tech Talk: Water injection for more power and efficiency
32 . Finance: A lifeline for struggling businesses
34 . Legal: Thumbs up or thumbs down?
35 . Labour: Safety regarding the use of cell phones in the workplace
36 . Cultural heritage and B-BBEE
NeWS
05 . News
09 . Industry News
18 . New products
20 . RMI News
24 . Association News
FeAtUreS
21 . Behind the Scenes with the SAPRA NEC
26 . Representing the interests of petroleum retailers
28 . Interview: Jay Patel keeps 84-year old tyre fitment centre booming
37 . New models Mitsubishi Triton, Porsche 911, Toyota GR Corolla,
Suzuki Fronx
41 . Motorcycles: Honda launches CB750 Hornet
42 . Ford to tackle 2023 Dakar rally
reGULArS
41 . Member Update
42 . Sales: July 2023 vehicle sales figures
P22
P40
P30
www.automobil.co.za
September 2023
September 2023
WWW.AUtOmObIL.CO.ZA
tHe DeepeSt bUSINeSS reACH INtO tHe SA retAIL mOtOr INDUStrY
Editor
Reuben van Niekerk
reuben@automobil.org.za
Sub-editor
Suzanne Walker
Regular contributors
Roger Houghton
Nicol Louw
Publisher
Wilken Communica�on Management
Tel: 012-4604448
Adver�sing Sales
Greg Surgeon
greg@automobil.org.za
Automobil is produced monthly by Wilken
Communica�on Management for the Retail
Motor Industry Organisa�on. The views and
opinions expressed in the publica�on are not
necessarily those of the publishers or the Retail
Motor Industry Organisa�on. While precau-
�ons have been taken to ensure the accuracy
of advice and informa�on contained in edito-
rial or adver�sements, neither the publishers
nor the Retail Motor Industry Organisa�on can
accept responsibility for errors, misrepresenta-
�ons or omissions, or for any effect or conse-
quence arising therefrom. Permission to repub-
lish any ar�cle or image or part thereof must be
obtained in wri�ng from the publishers.
Cover image courtesy of SIB
www.automobil.co.za
www.automobil.co.za
September 2023
eDItOr’S Letter
DrIVer’S SeAt
For information on the RMI and its workings, visit www.rmi.org.za or call 011 886 6300
hat a whirlwind the past two weeks have been! The RMi just fin-
ished exhibiting at the Festival of Motoring at Kyalami, which was
a great success. It is always so important to showcase our brand
to our customers and give them the peace of mind in knowing that by using
an RMI accredited member their vehicle will be tended to according to the
highest quality standards.
In a couple of days we head off for Johannesburg Expo Centre for the 8th
edition of Automechanika Johannesburg, the largest business platform for
the automotive aftermarket on the African continent. It is the ideal meeting
place for all stakeholders to gather, connect, and network, bringing together
suppliers and buyers and showcasing rapidly changing technologies and
processes. The event will play host to multiple sector-related conferences
making it a must-attend event for those involved in the automotive
aftermarket sector. Of course, the RMI and its constituent
Associations will be there in force – building momentum
together with the team from Automechanika. We greatly
value the partnership with Messe Frankfurt and welcome the
opportunity to showcase our values, services and products to
other owners and product suppliers.
We will once again have a large stand at the show
supported by each of our eight Associations. We’ve got
some exciting activities planned including the debut of
our new corporate video.
In addition to our stand, we will also be
hosting a number of executive meetings and
conferences. In celebration of women’s month
in August we will be hosting our Women Driving
change event with a theme: Enough strength for
the journey. It promises to be another exciting celebration of our heritage,
diversity and inclusion.
On the labour and training front, we are hosting an RMI Labour and Skills
conference that will look at labour law and skills in the automotive aftermarket
– particularly regarding who’s pushing and who’s pulling. The demand and
supply of skills and labour are crucial in improving competitiveness and
allowing the industry to contribute even more significantly to the country’s
GDP so this will be a critical conference to attend.
Equally there will be a strong focus on compliance with TEPA hosting an
impressive line-up of expert speakers for their one day ‘Blow the Whistle’
conference on 7 September. The session will focus on the very important
issue of industry compliance and the need to set up an Industry Compliance
Forum. Their powerful slogan of #seeitsayit should resonate with delegates.
MIWA will co-host a conference unpacking and reviewing where we
are two years on with the Guidelines for Competition in South Africa. The
conference entitled ‘The Guidelines – Making it work for YOU!’ will also
include a good global view from the CEO of the Australian Automotive
Aftermarket Association (AAAA).
Finally, the VTA will be hosting a conference that promises to be an
exciting and vibrant information-sharing and networking event for all vehicle
testing industry stakeholders. Topics that will be covered include testing of
electric vehicles and corruption in the vehicle testing industry.
As you can see the stage is set for an informative and vibrant couple of
days with jam-packed activities and networking opportunities. It really is the
one event in the year you don’t want to miss so we encourage all members
to really make an effort to attend.
Jakkie Olivier, RMI Chief Executive Officer
It is show time
s we put this issue of Automobil
to bed in between the Festival of
Motoring at Kyalami and the up-
coming Automechanika it got me think-
ing about the importance of these types
of trade shows.
Trade shows are a great opportunity
for exhibitors and visitors alike to ex-
pand their horizons. For exhibitors they
are an important part of their marketing
strategy and an opportunity to directly
engage with customers, clients or part-
ners in a way that is different to any oth-
er type of marketing.
The COVID-19 pandemic changed
the way we do business, interact and
shop. Virtual meetings are now the
norm and online shopping the preferred
way of acquiring raw materials, parts
and other goods needed to keep your
business running.
However, this method very often sees
people stick to what they know. With no
opportunity to touch and feel people are
inclined to keep buying the brands and
products they know and doing business
with the people that they have existing
relationships with.
Trade shows offer the opportunity to
discover new and exciting products and
chat to the people behind them. You
never know, you might be missing out on
something innovative. These events are
also a great opportunity to meet people
face to face, shake their hand and estab-
lish new relationships or cement existing
ones. The networking opportunities at
such an event are unrivalled.
Ahead of Automechanika I would like
to recommend that business owners
and suppliers set some time aside, get
out from behind their computers and
out of their offices and go shake hands
at Automechanika. It could very well
benefit your business in the long run.
Automechanika Johannesburg runs
from 5-7 September at the Nasrec Expo
Centre.
reuben van Niekerk,
reuben@automobil.org.za
Go shake some hands
take the
Automobil reader
survey here
View the July
sales figures
here
BELONGING IS BETTER BUSINESS
Here’s why…
Legacy and unity
•
We’ve been representing the retail motor industry for more than 100 years.
•
With more than 8 000-member businesses, our unity is our strength.
Your voice
RMI represents the industry at:
•
Centralised wage negotiations.
•
Various MIBCO and Industry-related Boards and committee structures.
•
Various South African Bureau of Standards (SABS)
committees and working groups.
•
The National Regulator for Compulsory Specifications (NRCS), defending our
industry when compulsory specifications and standards are compromised.
•
The Moto Health Care Fund, Industry Provident Funds
and the Sick, Accident and Maternity Pay Fund.
•
Meetings hosted by reputable organisations recognised by government, big
business, consumers and relevant stakeholders like Business Unity SA (BUSA).
Supports your business
•
Professional industrial relations advice ensuring procedural
and substantive fairness when disciplining staff.
•
Chairing of disciplinary hearings and AUTOMATIC
entry at the CCMA, DRC and Labour Court.
•
Exceptional CPA support at the National Consumer Commission (NCC)
and the Motor Industry Ombudsman of South Africa (MIOSA).
•
Facilitation of a business-to-business complaint where both parties are
RMI members, with a complaint resolution rate in excess of 95%.
•
Training needs and representation via merSETA and W&RSETA.
•
Industry-specific products like RMI4BEE, RMI4LAW and RMI4OHS.
Keeps you in the know
•
Industry labour relations seminars.
•
Automobil magazine and weekly web letters.
•
Commenting on industry topics in the media, and participating
in and hosting numerous conventions and shows.
NeWS
NeWS
www.automobil.co.za
September 2023
ahindra has showcased its new Global Pik Up Concept at its signa-
ture Futurescape event in Cape Town.
Based on the tough and versatile new generation ladder frame
platform, the global Pik Up promises to be one of the markets most versa-
tile and capable pickups when it goes into production and this vehicle rep-
resents Mahindra’s commitment to providing an authentic experience that
combines utility and innovation.
The design of the global Pik Up by Mahindra was founded on creating a
versatile and multipurpose tool tailored to the modern world. Mahindra’s
R&D teams and engineers conducted thorough research to gain insights
from various countries, shaping the vehicles design to meet customer pref-
erences. The Global Pik Up has been designed as a versatile, robust and
stylish vehicle, suitable for a wide range of applications. Its exterior is built
to with stand demanding conditions, while its interior offers comfort and
ample space.
The Global Pik Up combines functionality with aesthetics, delivering a driv-
ing experience that is both comfortable and reliable. The interior has been
crafted to provide convenience, with luxurious touches and a spacious layout.
The Global Pik Up has been thoughtfully designed to serve various life-
style requirements. With its substantial cargo bed and commendable tow-
ing capacity, it offers a practical solution for a diverse range of tasks.
With safety as a core focus, the Global Pik Up aims to meet global stan-
dards, including a five-star rating, using advanced safety technologies. The
vehicle’s convenience and driving experience is elevated through innovative
technology features. Mahindra’s intelligent 4Xplore four-wheel drive system
further augments the Pik Up capabilities, making it suitable for diverse en-
vironments.
cuderia South Africa, the official Ferrari
distributor in Southern Africa, is pleased to
announce that Smartgrowth Investments
Proprietary Limited, with André Rossouw as
the Chief Executive Officer, has acquired all the
equity of the group. This follows the successful
conclusion of negotiations that commenced in
November 2022 for the purchase of shares from
the company’s previous shareholders.
Moving into the future, André Rossouw brings
a wealth of experience, having previously served
in several senior management positions in the
luxury sports car business over the last 15 years.
“These certainly are exciting times for Ferrari
in South Africa and we look forward to support-
ing this amazing brand under the new ownership
structure,” commented André Rossouw, Chief
Executive Officer at Scuderia South Africa.
Celebrating its 50th anniversary as the official
Ferrari dealer, Scuderia South Africa has exten-
sive plans for the remainder of 2023. Two new
models, the Ferrari Purosangue and the Ferrari
Roma Spider are set to debut in South Africa in
the fourth quarter of this year, further bolstering
the line-up of supercars already available to our
discerning customers.
“Our world-class showrooms will continue
to provide a unique glimpse into the world of
Ferrari. It remains a hub where customers and
enthusiasts can appreciate the vehicles and
learn more about the proud heritage of the
brand,” Rossouw concluded.
Mahindra unveils Global
Pik Up Concept
Ownership of Scuderia
South Africa changes hands
A Driving force in South Africa’s automotive aftermarket
The Retail Motor Industry Organisation is a proactive, relevant, retail and associated motor industry organisation recognised
as the leading voice in South Africa‘s automotive after market. It serves the daily needs of its members and plays a key role
in enabling motor traders to deliver a superior service to motoring consumers. Eight Associations fall proudly under the RMI
umbrella. Inter-associational business-to-business trading is encouraged in the interests of all stakeholders.
HeAD OFFICe www.rmi.org.za
Tel: +27 11 886 6300 | Surrey Square Office Park, 330 Surrey Avenue, Ferndale, Randburg, 2194, Gauteng, P. O. Box 2940, Randburg, 2125
reGIONAL OFFICeS
Central: Randburg tel: +27 11 886 6300 | KwaZulu-Natal: Durban tel: +27 31 266 7031 | Eastern Cape/Border: Port Elizabeth tel: +27 41 364 0070 |
Western Cape: Cape Town tel: +27 21 939 9440 | Free State / Northern Cape: Bloemfontein tel: +27 51 430 3294
SAprA – South African Petroleum
Retailers’ Association
SAPRA represents the interests of all petroleum retailers in
South Africa. Its aim is to improve growth and profitability
for the investor. SAPRA plays an important role in tracking
global and local trends that affect sustainability and help
retailers remain relevant in an ever-changing business
environment. Retailers voice concerns through one of
the seven regional chairs strategically located around
the country, into a National Executive Committee (NEC),
where strategy and solutions are developed. This bottom
up approach is a fundamental SAPRA imperative.
SAmbrA – South African Motor Body
Repairers’ Association
SAMBRA is the pre-eminent motor body repair association in
South Africa representing the majority of accredited motor body
repairers. SAMBRA’s grading system, which was introduced over
30 years ago, regulates repairer standards in the motor body repair
industry in South Africa and instils confidence in consumers and
industry stakeholders alike. The Association works in close collab-
oration with various key industry stakeholders including Insurers,
Original Equipment Suppliers, paint and equipment suppliers, the
labour department and trade unions, as well as related SETAs – to
maintain industry sustainability and development. It ensures the
provision of technical and business management skills training in
order for members to meet the demands of the industry.
tepA – Tyre, Equipment, Parts Association
TEPA represents tyre dealers; garage/workshop equipment and
tool importers and distributors; auto part wholesalers, retailers
and independent operators in the aftermarket motor parts
industry as well as manufacturers and importers of parts for
the automotive aftermarket. The members of TEPA represent,
promote, sell and endorse the use of legitimate, bona fide,
quality branded products. TEPA members also export parts,
equipment and components into Africa and other countries in
the world. TEPA encourages at all times inter-associational RMI
business-to-business trading, intent on strengthening the RMI
Organisation as a whole. TEPA is seen as the mark of integrity
and fair trade for the consumer, the business operator and the
government. The Association is the legitimate voice of the tyre,
equipment, and parts industry in South Africa and is positioned
as an intermediary between government, business, and the
consumer.
VtA – Vehicle Testing Association
The VTA represents private vehicle testing stations that are
committed to operating within the law in accordance with the
Road Traffic Act and the relevant SANS standards. In this highly
regulated environment, the association represents the interests
of its members at government level working groups and is
committed to enhancing the reputation of the industry in all the
spheres.
ArA – Automotive Remanufacturers’ Association
ARA represents the remanufacturing trade sector. This includes
component remanufacturers involved in safety-critical compo-
nents, inclusive of but not limited to vehicle cooling, turbocharg-
er and braking systems; automotive engineers who machine and
remanufacture engine components by way of expert engineer-
ing – ultimately rebuilding engines to its original specifications;
and specialists in the repair, servicing and remanufacturing of
diesel fuel injection systems fitted to diesel engines in earth mov-
ing equipment, highway trucks, stationary engines and passen-
ger vehicles. ARA promotes the responsible reuse of remanufac-
tured engine components for a ‘greener’ environment (carbon
footprint). Its members are dedicated to providing consumers
with only the best of advice, finest service delivery, and highest
quality workmanship.
NADA – National Automobile Dealers’ Association
NADA represents the interests of business people who own or
operate new motor vehicle and motorcycle franchise dealerships
and qualifying used motor vehicle and motorcycle outlets. NADA
is committed to the image enhancement of the retail motor busi-
ness, facilitating the interface between dealers and OEMs; import-
ers and distributors; building relationships between dealers and
customers and bringing relevant industry issues to the attention of
government. NADA is the respected voice on all matters relating to
motor vehicle and motorcycle dealer business.
mIWA – Motor Industry Workshop Association
MIWA, the Independent Workshop Association, representing
general repairs, auto electrical; air conditioning; accessories and
fitment as well as transmission and driveline workshops strives
to remain ahead of the ever-changing technologies and best
practices of the aftermarket motor industry. MIWA encourages
members to support inter-associational, business-to-business
trading with a view to strengthen the RMI. MIWA remains the
leading resource for members ensuring continued relevance and
sustainability.
SAVAbA – South African Vehicle and
Bodybuilders’ Association
SAVABA members are professional, certified and regulated
vehicle body builders in South Africa who manufacture
commercial vehicle body applications (tanker, coal, refrigerated
trucks and trailers) and bus bodies (commuter and tourist
type). Members manufacture using the latest equipment and
highly trained staff to ensure strict compliance with NRCS
regulations; SABS standards and all other legal specifications
and requirements.
CONSTITUENT ASSOCIATIONS
NeWS
hich used cars have the highest de-
mand in South Africa in 2023? Which
is the most in demand brand? And
how many car searches happen every second?
The 2023 AutoTrader Mid-Year Car Industry Re-
port reveals the answers to these questions.
This report – which covers the first six months
of 2023 – delves into used car sales data, provid-
ing several interesting local in-market car shop-
ping insights.
Toyota is the leading brand in the local used
car market in 2023, selling an impressive 28 061
passenger cars and achieving a 17% share of the
used car market. The average price of the sold
Toyota vehicles amounts to R420 021, with an av-
erage mileage of 86 373km and an average mod-
el year of 2018.
However, Toyota does not reign supreme
when it comes to the top-selling used car model
in South Africa this year. That honour goes to the
Ford Ranger, which has an average selling price of
R433 371, with an average mileage of 90 659km
and an average model year of 2010. Impressively,
the Ranger has accounted for over 9 301 used car
units sold this year, constituting 6% of the overall
sales figure.
The Toyota Hilux does, however, emerge as
the second most sold used car in South Africa.
The Volkswagen Polo, in third place, fills the re-
maining podium position.
The list of the top 10 most sold used cars
is similar to that of new cars sold and the top
10 most enquired used models – but it is far
from identical. Four vehicles – the VW Polo,
Mercedes-Benz C-Class, BMW 3 Series and Ford
EcoSport – appear on the list of top-selling used
cars, but not on the list of top-selling new cars.
In addition, there are four cars on the list of
top-selling new cars that don’t make an appear-
ance on the list of used top sellers. They are the
Toyota Corolla Cross, Toyota Hiace, Toyota Starlet
and Suzuki Swift.
According to AutoTrader’s Used Car Sales
Data, when it comes to brand sales, Toyota
emerged as the leading brand in the local used
car market with approximately 28 061 used pas-
senger car sales. Volkswagen took second posi-
tion with 22 640 used passenger car sales and
finally, Ford took the third spot with 18 836 used
passenger car sales.
eady to reassure and thrill, the Eagle F1 Asym-
metric 6 is EV-ready and reduces noise and roll-
ing resistance.
Designed to suit a wide range of cars, including hot
hatches, sporty compacts, family cars, luxury sedans
and sports coupes, Eagle F1 Asymmetric 6 features a
number of innovations to build on the award-winning
Eagle F1 Asymmetric 5. The result is a tyre designed
to both reassure drivers with its wet braking and han-
dling abilities and thrill them with its outstanding dry
performance and sporty credentials. With new tech-
nology to improve dry performance, wet braking, wet
handling and electric vehicle suitability, Goodyear Ea-
gle F1 Asymmetric 6 is ready for anything.
“Goodyear has a proud heritage of delivering inno-
vative tyres to South African drivers for over 75 years.
We now proudly present the Eagle F1 Asymmetric
6, the latest in our award-winning range of Eagle F1
tyres,” said Shane Petersen, Director of Consumer
Business, Goodyear South Africa.
“With key innovations to improve dry perfor-
mance and wet braking and handling, it is ready for
the most demanding performance, simultaneously
reassuring and thrilling drivers,” adds Petersen.
Every tyre in Goodyear’s range is EV-ready, but
Eagle F1 Asymmetric 6 has been specifically designed
with manufacturers’ EV requirements in mind. Its
noise cancelling pattern results in a reduction of 1 dB,
shown on the tyre label, while its new compound
technology reduces rolling resistance, to help in-
crease electric range. The result is a tyre that is ready
for the next generation of mobility.
Goodyear launches
Eagle F1 Asymmetric 6
www.automobil.co.za
September 2023
Which used cars are
most in demand?
Top 10 mostt sold used models
Sold
Average
Average
Average
Ford Ranger
9 301
R433 371
90 659km
2019
Toyota Hilux
8 551
R454 294
102 931km
2018
Volkswagen Polo
7 355
R266 230
63 784km
2019
Volkswagen Polo Vivo
4 897
R193 929
64 144km
2019
Toyota Fortuner
4 175
R465 196
105 428km
2017
Mercedes-Benz C-Class
3 768
R436 256
96 200km
2015
BMW 3 Series
3 202
R371 773
100 568km
2016
Ford EcoSport
2 944
R246 794
53 944km
2019
Nissan NP200
2 069
R168 585
83 141km
2019
10
Isuzu D-Max
1 988
R387 562
31 527km
2022
TELL US WHAT’S ON YOUR MIND
RMI Executives
RMI Board Members
RMI Directors
RMI Head Office
Chief Executive Officer:
Jakkie Olivier
Cell: 082 452 5150
jakkie.olivier@rmi.org.za
Chief Operations Officer:
Jan Schoeman
Cell: 082 552 7712
jan.schoeman@rmi.org.za
Financial Director:
Renee Coetsee
Cell: 082 412 6760
renee.coetsee@rmi.org.za
Company Secretary:
Gary McCraw
Cell: 082 560 6613
gary.mccraw@rmi.org.za
Jakkie Olivier – CEO
Jeanne Esterhuizen – President
Ferose Oaten - Vice President
Frank MacNicol
Eugene Ranft
Teresa Spenser-Higgs
Les McMaster
Johann van de Merwe
Mams Rehaman
Sandra Singh
Charles Canning
Marcel van Ruler
Henry van der Merwe
Lindsay Bouchier
Brandon Cohen
ARA, SAVABA
Attie Serfontein
Cell: 082 452 5153
attie.serfontein@rmi.org.za
MIWA
Pieter Niemand
Cell: 082 812 5391
pieter.niemand@rmi.org.za
NADA
Gary McCraw
Cell: 082 560 6613
gary.mccraw@rmi.org.za
SAMBRA
Jacques Viljoen
Cell: 083 337 9922
jacques.viljoen@rmi.org.za
TEPA, SAPRA
Vishal Premlall
Cell: 082 886 6392
vishal.premlall@rmi.org.za
VTA
Julian Pillay
Cell: 082 560 6625
julian.pillay@rmi.org.za
Training Director
Louis van Huyssteen
Cell: 082 560 6623
louis.vanhuyssteen@rmi.org.za
Transformation Director
Nonhlanhla Noni Tshabalala
Cell: 083 208 7161
noni.tshabalala@rmi.org.za
Labour Director
Jeffrey Molefe
Cell: 082 560 6617
jeffrey.molefe@rmi.org.za
Danelle van der Merwe
Brand and Communication Manager
Cell: 082 926 5846
danelle.vandermerwe@rmi.org.za
Nonhlanhla Noni Tshabalala
HR Manager
Cell: 083 208 7161
noni.tshabalala@rmi.org.za
Julian Pillay
Regulatory Compliance Manager
Cell: 082 560 6625
julian.pillay@rmi.org.za
011-886-6300
www.rmi.org.za
Surrey Square Office Park
330 Surrey Avenue,
Ferndale, Randburg
2194
RMI Regional Offices
Julian Pillay: Regional Manager: KwaZulu-Natal
Enrico Phillips Regional Manager: Western Cape
Peter van Mosseveld: Regional Manager: Eastern Cape/Border
Raoul Spinola: Regional Manager: Central
(Gauteng/Northwest/ Mpumalanga/ Limpopo)
Reemo Swartz: Regional Manager: Free State/Northern Cape
Central: Randburg: 011 886 6300
KwaZulu-Natal: Durban: 031 266 7031
Eastern Cape/Border: Port Elizabeth: 041 364 0070
Western Cape: Cape Town: 021 939 9440
Free State/Northern Cape: Bloemfontein: 051 430 3294
RMI PARTNERS
RMI4Law 0861 668 677
RMI4BEE 066 292 0102
RMI4OHS 072 787 5503
@AutomobilSA
Facebook.com/AutomobilSA
www.rmi.org.za
INDUStrY NeWS
he sixth Festival of Motoring, powered by
WesBank, took place at the Kyalami Grand
Prix Circuit at the end of August.
As a key theme during his keynote address,
Ghana Msibi, WesBank CEO, highlighted several
significant trends that are shaping the sector and
will continue to dictate the evolution of the auto-
motive industry in South Africa.
Key among these is the cost of new vehicle
ownership, which, according to WesBank’s data,
has sharply increased in the years between 2012
and 2023, with the highest annual spike being an
increase of over 21%, experienced between 2021
and 2022.
“The less than favourable Rand/Dollar ex-
change rate has not aided in lifting the affordabil-
ity burden for South Africans. One needs only to
look at new vehicle prices to see the devastating
impact of the weak Rand. The average deal size
on WesBank’s books for internal combustion
engine (ICE) cars, for instance, has risen to over
R300 000, while the average price of new en-
ergy vehicles (NEVs) is between R800 000 and
R900 000,” said Msibi.
Msibi emphasised the urgent need to intro-
duce more affordable electric vehicles (EVs) for
domestic sale to close the price disparity that ex-
ists between ICE cars and EVs.
“We can’t wait for a change in Government
policy to ensure the survival of the automotive
sector. There is an opportunity to stimulate de-
mand for EVs through the introduction of more
affordable models, which is critical to ensure the
longevity of the sector,” emphasised Msibi.
“The picture is not completely bleak, though.
There are some green shoots, including the lat-
est consumer price index (CPI) data, which has
dropped to 4.7%, the lowest level we’ve seen in a
very long time. This brings us very close to a more
desirable midpoint, which we anticipate will be
sustained for the better part of the coming year
as well,” added Msibi.
Another positive trend highlighted by Msibi is
the changing profile of car buyers in South Africa,
which is led by exponential growth in the number
of young people entering the market.
“Despite the notion that fewer young people
are interested in owning a car, there has been an
enormous increase in the number of millennials
who are applying for car finance through Wes-
Bank. This number has increased by a whopping
700% between 2017 and 2021.”
“But while they are eager to buy, this co-
hort of customers is very particular in their de-
sired ownership experience. Personalisation,
choice, and simplification are among their top
requirements.
“It cannot be business as usual when selling to
these new buyers,” Msibi pointed out.
“It is clear that the global automotive land-
scape is changing, and we need to acknowledge
that this is affecting what customers want in their
motoring journey. If we are only now planning to
deal with the changing customer dynamics, we
are effectively already behind the curve,” said
Msibi.
“To maintain the vibrance of the local indus-
try and continue to fuel the excitement that is
evidenced at events like the Festival of Motor-
ing, concerted effort is required from all players.
And the time for such efforts is now,” concluded
Msibi.
WesBank highlights key trends
affecting SA automotive sector
www.automobil.co.za
September 2023
10
www.automobil.co.za
September 2023
aval Motors South Africa (HMSA) has an-
nounced an investment in the Automobile
Association (AA) Technical College and its
continued support for this venture by supplying
New Energy Vehicle (NEV) components to the
College, and by contributing to practical and cur-
riculum development on NEV technology in asso-
ciation with the AA.
As a world leader in vehicle battery technology
through SVOLT, a company wholly owned by Ha-
val’s parent company Great Wall Motors (GWM),
the brand recognises that the introduction of
new energy vehicles to the local market requires
not only infrastructure and Government policy to
grow and develop, but also skills development.
“Electric and hybrid electric vehicles require
special skills, safety, training and equipment to
service and work, and this totally transforms the
role and skills required by vehicle technicians,”
says Yusuf Patel, Head of Aftersales at Haval Mo-
tors South Africa.
“HMSA recognises this and as we are well
positioned in the NEV space and want to be the
pioneers of driving skills development for New
Energy Vehicles in the local industry, in particular
where it is not being addressed by Government
or the industry,” adds Patel
In addition to a variety of services the Automo-
bile Association also offers specialised apprentice-
ships to help motor industry players build in-house
skills, and short skill courses for individuals.
“It could not have come at a better time. The
curriculum for the technical college is currently
being updated by the Department of Education
and part of the new curriculum is an introduction
to Electric Vehicles as well as Hybrid Vehicles,”
says Werner Wandrey, Principal of the AA Tech-
nical College.
“With this donation we will undoubtedly be
one of the first training facilities that supports
actual modules, not only in theory but with prac-
tical tasks and exhibitions in this new technology.
We can therefore train our learners way ahead
of time before EVs and hybrid vehicles become
mainstream in our market. We are very grateful
for this donation,” says Wandrey.
Haval announces new energy
investment in the AA
.U.D. Holdings have announced the ap-
pointment of Devan Naidoo as its new
Chief Executive Officer, effective from 1st
August 2023.
Devan Naidoo joins G.U.D. Holdings with an
impressive background and a wealth of experi-
ence gained during his extensive career with the
Mondi Group. He began his journey with Mondi
in 1997 at their Durban operations and has since
held various leadership positions within the
company. Most recently, he served as the Group
Director responsible for global sales, marketing,
and supply chain at Mondi Paper. Devan was in-
strumental in designing and implementing the
commercial strategy for Mondi Paper on a global
scale.
G.U.D. Holdings is confident that Devan
Naidoo’s appointment will be a significant asset
to the organisation, playing a vital role in guiding
the group towards achieving its future goals.
G.U.D. Holdings
appoints new CEO
INDUStrY NeWS