0111 GMT - GUD Holdings' choice of South Africa for the geographic expansion of its APG business seems logical to Citi. That's because there are similarities to Australia and New Zealand where the top three selling vehicles--the Ranger, Hilux and D-Max--also rank in the top five in South Africa. In a note, analyst Sam Teeger highlights that South Africa is a key export market with 60%-70% of locally produced light commercial vehicles sold overseas, primarily to Europe. "When including exports, the South African volumes could be broadly similar to Australia should other OEMs partner with APG," Citi says. "But we note the aftermarket is likely to be more challenging in South Africa due to lower disposable income." OEMs refer to original equipment manufacturers. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

May 15, 2024 21:11 ET (01:11 GMT)

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