Automotives continue to be a highly competitive, important industry, even though it is currently facing one of the worst times globally. The economic slow-down has resulted in a parallel slow-down in consumer demand, combined with a demand for more fuel efficient vehicles in response to fluctuating oil prices and environmental concerns. Increased competition from low cost and market booming regions such as Eastern Europe and Asia, and overcapacity problems, are putting added pressure onto our local industry that produces and sells less than 1% of the vehicles in the global automotive market.

The industry, therefore, faces a number of challenges. Economies of scale in local assembly and the depth of domestic component manufacturing are not yet optimal. Relatively few automotive components are manufactured locally for export vehicles. Most of the growth in domestic automotive sales has been serviced by imports, resulting in a growing trade deficit, however the current domestic downturn and growth in exports looks likely to reverse this situation.