MASTERPARTS: Masterparts Growth Shows No Signs of Slowing

Traditionally the African leader of the automotive industry, South Africa now produces more than half a million automobiles of all types each year. Amid the despondency around load shedding and other weakening economic indicators, the National Association of Automobile Manufacturers of South Africa’s (Naamsa) New Vehicle Sales stats for September 2022 evidence a year-on-year increase of 10.8%.

The automotive industry contributes 4.3% to South Africa’s GDP, with the export of vehicles and automotive components reaching a record amount of R207.5 billion – equating to 12.5% of South Africa’s total exports – in 2021, and according to Naamsa, aggregate domestic new vehicle sales in September 2022 rose to just shy of 50,000 units, an increase of near-on 5,000 from the previous September.

Despite much positivity, however, the cumulative effects of the pandemic, looting, pricing, taxes, environmental concerns, and demands of SA’s road network make it a far from easy space in which to operate. The South African Reserve Bank pointed to economic and financial conditions expected to remain more volatile for the foreseeable future, then lowered its economic growth outlook for 2022. Naamsa added that the global economy has entered a period of persistently high inflation and weaker economic growth impacting demand.

LEADING SUPPLIER

It leaves the strongest and most robust businesses in the industry to move through the gears and lead the industry on the upward curve that has been shown to be abundantly possible. Big international OEMs have committed long-term to the country, which has seen some of the national chain stores already benefit from this vote of confidence.

A leading supplier and distributor of car engine parts and automotive accessories, Masterparts was founded in South Africa in August 1975, with the goal of providing other retail shops, engineers, workshops and the public with an extensive range of high-quality engine parts shot through with superior technical ability and a depth of knowledge greater than any competitors can offer. “To do this,” Masterparts says, “we draw on over 46 years of experience in the aftermarket parts and spares industry.”

In the early 2000s, the product range was vastly extended to include suspension and steering components and shortly thereafter, braking components, radiators and wheel bearings, clutch kits and more. More recently, a wide range of electronic components has been added to the peerless offerings.

“Our mission is to continue providing the widest possible selection of car parts, including hard-to-find items, and remain the number one choice for everything from engine, suspension and steering to braking and electronic parts.” With more than 500 staff active across 12 branches and a large distribution centre (DC) in Cape Town, Masterparts is more than equipped to negotiate both the soaring peaks and the inevitable troughs of the economy and industry.

“We started in 1975 and were sourcing from local suppliers, agents and warehouses,” Managing Director, Chris O’Carroll, detailed last year. “As the company has grown we have been able to source directly from international suppliers in various markets in order to achieve our aim of having an extensive range with good availability.

“We have one store in Windhoek, six in the Western Cape as well as the DC, and we have three in KZN,” he detailed, an already strong arsenal which has since been further bolstered by a site in Windhoek, opened in October, and earlier in the year, a huge new store in Pietermaritzburg.

NEW LOCATIONS

The opening of the new warehouse in KZN was geared toward supporting the company’s strong growth in the region and streamlining the movement of stock around the country. “The aim was to try and cut down on stock movement and make the handling process as efficient as possible.”

The logistical benefits of the new warehouse site cannot be overstated, either; many Masterparts suppliers send products into the company from international markets and most come in through the Port of Cape Town, and the new warehouse means that these containers can come through the Port of Durban – sub-Saharan Africa’s largest – to expedite entry into Masterparts outlets.

“We buy from about 20 countries,” details O’Carroll. “We have suppliers in North and South America, Asia and a number of countries in Europe. That scope enables us to cover the full range of makes and models in our market.” For more than four decades, Masterparts has offered one of the largest selections of engine, transmission, steering, electronic, suspension, timing, exhaust, filtration, brake, wheel and cooling parts in the country, and is making it easier and easier for customers to walk into a branch and pick up what is required.

This broadening, strengthening footprint will be vital, as the automotive industry continues to regain confidence and freedoms are universally restored. People have returned to the roads with a vengeance, keen to make up for the time lost to the pandemic and its restrictions, resulting in more cars purchased and repaired and more people heading into stores in their droves again.

“Thankfully we are growing,” O’Carroll reiterated, with Masterparts firmly on the move. “We have added stores in order to reduce pressure on existing stores, so that we can maintain high levels of service.” The auto sector in KZN has long been cited as thriving and driving itself forward with a number of major international brands present in the province, and a number of assembly operations helping to create opportunities; the new Masterparts warehouse means that stock could not be easier to come by for these clients and potential clients.

The KwaZulu-Natal automotive manufacturing sector is a major employer and driver of economic development, with around 20% of major automotive component suppliers located in the region contributing over R7 billion towards South Africa’s total value added. It is also home to Toyota’s assembly plant, South Africa’s largest producer of vehicles.

“Now that we have the warehouse in Durban, we can service that region far more efficiently,” O’Carroll beamed, and it is only going to become more valuable as the KZN automotive industry looks to grow its sales, employment and manufacturing value added in support of Government’s objective of having 1.3 – 1.5 million vehicles produced in South Africa by 2035. This requires a near doubling of local production over the next five years, and Masterparts will play a vital role in supporting the KZN, and South African, drive to achieve it.