The Department of Trade, Industry and Competition is conducting an internal review examining various policy options aimed at curbing rising import levels, which officials argue are undermining domestic manufacturing and threatening long‑term industrial competitiveness.
However, the Motor Industry Staff Association (MISA) has criticised the proposal, arguing that government should not shield one sector at the expense of others. Critics warn that sharply higher import duties could raise vehicle prices for consumers and negatively affect parts of the automotive value chain reliant on global trade.
Speaking to Channel Africa on Friday, Ayabonga Cawe, Chief Commissioner of the International Trade Administration Commission of SA (ITAC), said the data shows a clear shift in the structure of SA’s vehicle market.
He noted that while 2025 saw record new‑vehicle sales domestically, a historic proportion of those sales came from imports rather than locally assembled vehicles. Two decades ago, most vehicles on SA’s roads were assembled or manufactured locally; today, the trend has reversed due to rapid production expansion in countries such as China, India and Thailand.
Cawe explained that the dtic review extends beyond tariffs. While ITAC has already communicated potential duty rates of up to 50% on passenger vehicles and around 30% on parts and accessories, the government is also examining:
- Ad valorem (luxury) taxes applied to higher‑value vehicles
- Duty credit certificates used within SA’s automotive industrial programmes
- Investment incentives are applied across different parts of the automotive value chain
He stressed that the review is “far wider and more far‑reaching” than recent public attention suggests, adding that much of the media focus has fallen solely on tariffs, despite the broader policy considerations being evaluated.
Cawe said global market shifts, including Original Equipment Manufacturers (OEMs) relocating production capacity to Asian countries, have added pressure on SA’s automotive manufacturing base, prompting this reassessment of industrial and trade policy tools.
–ChannelAfrica–
