Overview
- International Trade Administration Commission chief Ayabonga Cawe said aligning import duties with World Trade Organization bound rates is on the table, noting passenger vehicle tariffs could rise from about 25% to as high as 50%.
- Cawe indicated scope to lift duties on vehicle components by roughly 10% to 12%, with the rate dependent on the origin market.
- The Department of Trade, Industry and Competition plans consultations with the National Treasury on additional tools, including possible excise duties on new luxury cars and changes to rebate credit certificates.
- China supplied 53% and India 22% of South Africa’s vehicle imports in 2024, with shipments from China up 368% and from India up 135% over the past four years.
- Lower-priced imports have intensified competition in the entry-level segment, pressuring margins for domestic manufacturers even as policy options are still being developed.