South Africa’s biggest vehicle importer, Associated Motor Holdings (AMH), responsible for bringing Hyundai, Kia, Daihatsu and Tata to the country, saw sales increase by 22% in 2009 compared with 2008, says CE Manny De Canha – this as the total new vehicle market declined by 26% last year. AMH’s performance somewhat mirrors Hyundai’s global success. The Korean company has edged out the competition to become the world's fourth-biggest producer of cars. Imperial owns 90% of AMH, and AMH 50% of Renault South Africa.

Imperial CEO Hubert Brody says AMH’s brand have enjoyed “good growth and significant market share gains” in 2009. He believes Imperial’s vehicle brands are set to do even better going into the future, as they are well-priced in a cost-sensitive, post-recession market. “We are absolutely perfectly positioned for a market where people are buying down. Our product range is absolutely spot-on.” Brody also believes that brand awareness is high, and that it will be heightened further by the 2010 FIFA World Cup, with Hyundai and Kia on the sponsor list for the global event.

He adds that Imperial may make further gains in its automotive business – which, apart from AMH, also includes a new and used retail network – through the introduction of the new carbon levy on September 1. Brody says smaller vehicles and the used car market will benefit from the new tax regime, which favours the use of more fuel-efficient vehicles (often this equates to vehicles with smaller engines) that emit less carbon dioxide (CO2). AMH’s range includes many smaller cars such as the Renault Sandero, the Kia Picanto and the Hyundai i10.

Finance Minister Pravin Gordhan announced in his maiden budget speech earlier this month that new passenger vehicles will be taxed based on their certified CO2 emissions at R75 per g/km for each g/km above 120 g/km. Brody says he believes the average price increase on vehicles owing to the tax will be between R5 000 and R6 000. Despite floundering sales from the Indian brand in AMH’s stable, De Canha says AMH will retain Tata. “Yes, we had a problem with quality, but it has improved. Their new engine range is performing well.”De Canha adds that AMH is not currently considering manufacturing vehicles locally. “We did a feasibility study, but we don’t have the volumes. We would need to export to Africa, and the African market is not there.”