The Motor Industry Staff Association (MISA) has cautioned the South African (SA) government against introducing protectionist measures that could harm the retail motor industry, warning that proposed tariffs on Chinese and Indian vehicle brands may lead to further job losses.
MISA says while government efforts to protect local vehicle manufacturing are understandable, they should not come at the expense of the retail side of the industry, which has already been under severe pressure.
According to the association, dealership closures have accelerated over the past two years, with a devastating impact on employment in the retail motor sector. MISA argues that restricting the growth of newer vehicle brands could worsen the situation.
MISA Spokesperson Sonja Carstens said the entry of Chinese and Indian brands into the SA market has helped absorb workers retrenched by traditional dealerships.
“We are already seeing more dealership closures than in the past two years, and this is having a devastating impact on the retail motor industry,” Carstens said. “But with the influx of Chinese and Indian brands, we’ve also seen them establish dealership networks across SA. Where people are retrenched from traditional brands, these new brands come in, set up dealerships and create jobs for those same workers.”
Instead of imposing tariffs, MISA is urging government to encourage Chinese and Indian manufacturers to invest in local production facilities, which it says would support both manufacturing and retail employment.
The association maintains that a balanced policy approach is needed to protect jobs across the entire automotive value chain, rather than favouring one segment of the industry at the expense of another.
–ChannelAfrica–
