South Africa's automotive component manufacturers' 2006 exports, worth R30,3-billion, were 32 per cent higher than the figure for 2005, the National Association of Automotive component Manufacturers (Naacam) reported.

Catalytic converters continued to be the major contributor to the total (R15,9 billion), which was a 58,2 per cent improvement on 2005. Other types of components to significantly increase exports during 2006 included engines (29,1 per cent), silencers and exhaust systems (78,7 pent), car radios and sound systems (40,3 per cent) and axle assemblies (86,1 per cent).

Component exports are also running well in 2007, with Volkswagen SA have announcing recently that they expect to earn R1,3-billion from the export of about 50 000 five-cylinder TDI diesel engines to Volkswagen AG in Germany this year. Those exports are part of a six-year contract which was awarded in 2004 and is worth about R12-billion, and involve the export of about 400 000 units by 2011.

Between 2004 and last year, VWSA exported about 170 000 LT2 engines which were fitted to the Volkswagen LT panel van. This engine has now been superseded by the LT3 engine, of which 230 000 will be exported for fitment in the Crafter, Volkswagen's new large panel van.

However, in contrast to the booming component exports, the use of locally made components in South African assembled vehicles has continued to decline over the past three years (from 59,7 per cent in 2004 to 56,5 per cent last year).

That contributed to the current trade deficit. A total of R90-billion worth of vehicles, CKD components and replacement parts were imported in 2006, resulting in a motor industry trade deficit of R32,3-billion (vehicles and components exported during the period amounted to R57,5 billion). The deficit was considerably worse than 2005 (R27,7 billion) and 2004 (R17,6 billion).