Car assembly resumes but sales are still under lockdown

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Car assembly resumes but sales are still under lockdown
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The motor industry waits to hear whether dealers can open for retail

In lobbying for vehicle sales to recommence, the motor industry has argued that it plays a critical role in getting people, products and services to market. Picture: DENIS DROPPA

After lobbying from the motor industry, the Department of Trade and Industry last week said that gradual opening of car sales would be allowed under specific conditions to be published, but as of Wednesday afternoon hadn’t yet announced what those conditions are. In lobbying for vehicle sales to recommence, the motor industry has argued that it plays a critical role in getting people, products and services to market. An extended lockdown would affect about 1,600 franchise dealers in SA employing 60,000 people directly and nearly one million in the automotive value chain.

The five-week lockdown has had a devastating effect on the local automotive industry, bringing manufacturing and retail industry that accounts for almost 7% of SA’s GDP to a virtual standstill. He said export orders for SA-built Toyotas to Europe and Africa are expected to plummet around 15-20% in 2020.

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