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South Africa is considering imposing tariffs of up to 50% on vehicles from China and India as it moves to protect its automotive industry from a flood of imports.<\/p>\n
An internal review is being conducted by the Department of Trade, Industry and Competition (dtic) to assess potential measures to stem inbound shipments, which policymakers say are undermining local manufacturing.<\/p>\n
Read:
The stunning rise of Chinese SUVs in South Africa
BYD bets on South Africa amid China price crunch
Chery to acquire Nissan\u2019s Rosslyn plant in major SA auto shake-up<\/p>\n
Among the options under consideration is an amendment to South Africa\u2019s tariff schedule to bring import levies in line with World Trade Organisation concessions for most-favoured nations, Ayabonga Cawe, the commissioner of the country\u2019s International Trade Administration Commission (Itac) told lawmakers in Cape Town on Tuesday.<\/p>\n
\u201cFor completely built-up passenger vehicles, the bound rates there are at 50%, our duties at the moment are at around 25%,\u201d Cawe said.<\/p>\n
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\n\u201cOn components, there is some room to manoeuvre \u2013\u00a0depending on what the origin market is \u2013\u00a0of between 10% and 12%.\u201d<\/p>\n<\/blockquote>\n
China, India and South Africa are part of the Brics group of developing nations, which has been working toward deepening trade ties between member nations.<\/p>\n
Vehicles sourced from China and India \u2013 now the world\u2019s two largest manufacturing hubs \u2013 accounted for 53% and 22% of South Africa\u2019s total vehicle imports respectively in 2024.<\/p>\n
\nThe number of vehicles shipped from China has surged 368% over the past four years, and from India 135%.<\/p>\n
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Competition has been fiercest in the entry-level segment of the market, with lower-priced imports compressing margins for domestic producers.<\/p>\n
Read:
China\u2019s electric vehicle influence expands nearly everywhere
Chinese and Indian vehicles now make up almost 50% of CMH\u2019s sales<\/p>\nThe dtic is likely to consult with National Treasury on potential tax measures, including the introduction of excise duty on new luxury cars and a review of how rebate credit certificates function.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
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