Johannesburg - South Africa's car industry was expected to notch up record sales and exports this year, revved up by an increased purchasing power and a healthy economy, manufacturers and analysts said this week.
More than 45 000 new cars were sold last month, up 19.4 percent from the same month in 2004 when new car sales hit an all-time high.
"If there is one major success story within South African manufacturing, it's the automobile industry," said BMW's local head of communications, Richard Carter.
"It's an iconic success story and a clear indication of what the country can do when a plan comes together to compete with the rest of the world."
Analysts link South Africa's motor boom to increased spending power and business confidence.
"There is a lot more money circulating and, with the emerging black population, there are more people who can now afford a car," said Duane Newman, an automotive analyst at Deloitte.
South Africa is heading for another record year, despite a recent cooling in sales.
"The exceptionally strong growth trend in South African new vehicle sales should continue throughout 2005 with the market recording for the second successive year record sales," said National Association of Automobile Manufacturers of SA director Nico Vermeulen.
The industry is now slightly larger than the country's traditional economic keystone, mining, contributing 7.2 percent to the gross domestic product, compared with mining's 7.1 percent.
Success on the home front has prompted the industry to cast its eyes abroad, exporting to countries including the traditional automotive giants such as the US and Japan.
BMW said it would ship out about 80 percent of its new 3-Series model once in full production, while last month Toyota started exporting the first of its new Hilux bakkies to 70 countries, with a revenue potential of around R120 billion.
In mid-2004, Volkswagen announced the planned export of about 15 000 new-generation Golf models, while Ford said in May it had started exporting the Focus model as well as several bakkies.