Naamsa: Increasing popularity of grey imports a worry

The National Association of Automobile Manufacturers of South Africa, NAAMSA, has expressed concern over the increasing number of grey imports arriving on local shores.

In a statement released together with the September vehicle sales, the association said the imports, which account for 300 000 of the 12.7-million vehicles on South African roads, are impeding on new model sales and resulting in a loss of tax amounting to R3.8-billion per annum.

“Grey imports have a negative impact on the automotive ecosystem because they rob the fiscus of the much needed tax revenue; they hurt job creation; they aid criminal activity; and undermine road safety initiatives,” NAAMSA said.

“To put into perspective, the monthly average new vehicle market for 2020 is 28 500 units. Grey imports represent an extra months sales per annum, which represents 7.5% of total market and would be the third largest brand in South Africa by volume”.

In a continuation of previous months, and in response to the lifting of more restrictions as per the downgrading to Level 1 of the Coronavirus enforced lockdown, new vehicle sales for September totalled 37 403 units, the highest since February’s 43 485, but still 23.9% down on the 49 140 recorded last year.

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