South Africa’s automotive sector has urged the government to increase the import duties on new cars and bakkies.
According to the newspaper Business Day, sources in the industry have called for duties of 25-30% on vehicle imports.
The local car manufacturers need urgent action to protect them from these imports, which now account for 64% of new-vehicle sales in the country. According to analysts, Chinese imports represent the largest share of imports!
However, manufacturers now want the government to adjust APDP (Automotive Production and Development Program) rules so that excess credits can be absorbed into their battling local business operations. One proposal is that this could reduce prices by cancelling out “ad valorem taxes” – (In simple terms, – the more expensive the vehicle, the higher the tax rate), which comprise more than 40% of the price of new vehicles sold in SA.
Speaking at the National Association of Automotive Component and Allied Manufacturers (Naacam) earlier this month , BMW SA chief executive Peter van Binsbergen was one of several business leaders to warn that decisive policy action could see the local motor industry failing.
Among examples of the industry’s growing concern is the fact that Mercedes-Benz SA has reduced production volumes, and Nissan SA’s manufacturing plant in Rosslyn also heading for a complete shutdown!
South Africa’s automotive production is operating at less than 75% of capacity, with exports counting for two-thirds of production.
Toyota SA Motors CEO Andrew Kirby said South Africa could no longer allow its manufacturing base to shrink as it accounts for 22.6% of the country’s manufacturing output.
Naamsa Sales Statistics for August ‘25
Domestic new vehicle sales for August maintained an upward momentum and reached its highest level since October 2019. Export volumes also gained traction despite the fact that manufacturers and suppliers continued to adjust to renewed US tariff uncertainty and increasing global competition.
Total new vehicle sales for August at 51 880 units shows an increase of 8 188 units sold in August 2025 compared to the 43 692 units sold in August 2024. That is a humongous increase of 18,7%!
Unfortunately the same can’t be said about medium and heavy vehicle sales!
Sales for medium and heavy truck segments of the industry reflected a weak performance in August 2025 and at 717 units and 1 923 units, respectively, recorded a decrease of 29 units, or 3,9% from the 746 units sold in August 2024 in the case of medium commercial vehicles, and, in the case of heavy trucks and buses a decrease of 185 vehicles, or 8,8%, compared to the 2 108 units sold in the corresponding month last year.
Export sales for the month of August 2025 increased by 2 199 units, or 6,2% from the 35,310 units exported in August 2024 to 37,500 units exported in August 2025. For the year to date, vehicle exports were still 3,0% ahead of the same period 2024 but are under pressure in the near term as the sector continues to adjust to higher tariff barriers to the US market as well as to adjust to the knock-on implications of the tariffs resulting in increasing global competition in other traditional export markets. The industry’s ongoing focus will remain to navigate potential re-routing and further market diversification strategies.
From CLC Trucks, we wish you all a very happy and productive September with spring in the air!!
– Cobus Lourens –
