N8/1/1
16th March, 2004

To:    CHIEF EXECUTIVES OF NAAMSA MEMBER COMPANIES
         FINANCE DIRECTORS
         HEADS OF SALES AND MARKETING DEPARTMENTS
         NAAMSA STATISTICS COMMITTEE
         MIDC CONSTITUENTS

Ladies and Gentleman,

NEW VEHICLE MANUFACTURING INDUSTRY :
CAPITAL EXPENDITURE 2000 - 2004

NAAMSA communication N8/1 dated 6^th January, 2004 refers.

Details of the industry’s capital expenditure, for the years 2000 through 2004 may be shown as follows –

		R Millions
	Capital Expenditure	2000	2001	2002	2003	2004 Projection
	Product/Local/Content/Export Investment/Production Facilities	1 311,2	1 800,1	2 311,4	1 989,4	3 109,1
	Land and Buildings	109,7	33,3	152,0	141,5	106,6
	Support Infrastructure (I.T., R&D, Technical, etc.)	140,6	244,9	262,4	193,9	361,0
	Total	1 561,5	2 078,3	2 725,8	2 324,8	3 576,7

The decline in the Industry’s 2003 capital expenditure, in Rand terms, is predominantly a function of the strong Rand which would have resulted in lower costs of imported capital equipment (machinery/production technology). Furthermore, in certain instances, capital expenditure originally earmarked for 2003 would have been deferred to 2004.

The following NAAMSA member companies participated in the survey –

BMW South Africa (Pty) Ltd
DaimlerChrysler South Africa (Pty) Ltd
Delta Motor Corporation (Pty) Ltd
Ford Motor Company of South Africa (Pty) Ltd
Nissan South Africa (Pty) Ltd
Peugeot Motors South Africa
Toyota South Africa Motors (Pty) Ltd
Volkswagen of South Africa (Pty) Ltd

Regards,
Vermeulen


NAAMSA OFFICES: PRETORIA
18th March, 2004