ABN - Capital expenditure in South Africa’s automotive sector is set to rise to US$615 million in 2017, up from $481 million last year.
The rise in spending across the industry is based on data provided by seven major car makers across South Africa, according to a memo by the National Association of Automobile Manufacturers of South Africa (NAAMSA).
NAAMSA also expect car sales to increase over the year, rising by 2.5% to 3.5%, after an extended period of decline in the three years prior to 2017.
"As the economy starts to show signs of life and interest rates remain stable for the foreseeable future, the market will develop some traction in the second half of the year," said Nico Vermeulen, director of NAAMSA.
The automotive industry, South Africa’s largest sector, is expecting a strong 2017 as economic growth slowly accelerates following a drop in commodity prices, due to a debilitating period of drought in the last year.