Short-term insurer Santam has warned that clients could experience delays in the repair of damaged motor vehicles over the coming months due to a global shortage in parts. The supply-chain challenges also affect the availability of electronic and other related equipment or materials.
“Over the past two years, the motor industry has been hit by multiple challenges, with the global demand and supply of motor vehicles, related parts and services being affected. SA’s situation is not exclusive,” said Ebrahim Asmal, Santam’s executive head of group sourcing.
“Multiple factors, that include back orders from Covid-19, the conflict between Russia and Ukraine, the recent flood damage to vehicle-manufacturing facilities and [the] harbour in KwaZulu-Natal, including the international lockdowns in China and Taiwan, which are two major parts-manufacturing countries, have all come together to worsen supply constraints,” he said.
Logistics services have been severely disrupted and remained constrained, with the cost for these services increasing massively since 2020.
“At Santam, we are actively engaging with a myriad of industry stakeholders, including vehicle original equipment manufacturers (OEM), OEM parts dealerships and other suppliers, to find solutions to assist our clients.
The SA Motor Body Repairers’ Association (Sambra) issued a similar cautionary to motorists in April, saying collision-damage repairs may be delayed due to the acute shortage of motor-body repair components.
Uvashen Bramiah, national director of Sambra, says the association will continue to liaise closely with insurers and OEMs across all vehicle brands on the status of certain critical parts, and wherever possible, would repair rather than replace the part in question.