Sales of new automobiles in South Africa increased by 22 percent at the end of 2004 from 2003 to a record 481 000 units sold, the National Association of Automobile Manufactures of South Africa (NAAMSA) said. However, automobile exports slipped slightly in 2004 to 109 450 vehicles, down from 126 661 cars the previous year. This was mainly because the high exchange rate against the US Dollar. For 2005, NAAMSA said it predicted a more than 10% rise in new car sales.

Since 1 January 2005 a government ban on Japanese cars older than 5 years has been put in place. The Southern African Customs Union (SACU) banned such imports, the ministry of trade and industry said this week, and Namibia sought a temporary exception. But abuse of this ruling like evasion of duty and tax payments and illegally selling the vehicles to other SACU countries caused the decision, the MTI explained. Additionally, spare parts for cars older than 5 years were no longer "in production". SACU countries had to develop common industrial strategies, the MTI said. In the same vein, Namibia should develop its own local automotive part industry. This appeal by the MTI is in stark contrast with the recent closure of Barden Motors in Windhoek, a US company.