- South Africa is considering imposing tariffs of up to 50% on vehicles from China and India, as policymakers said that imported goods are harming domestic manufacturing.
- Over the past four years, South Africa's imports of vehicles from China have surged by 368%.
South Africa is considering imposing tariffs of up to 50% on vehicles from China and India as protectionist measures intensify globally.
The Department of Trade, Industry and Competition is conducting an internal review to assess potential measures to curb imports that policymakers say are harming South Africa's domestic manufacturing sector, according to a Bloomberg report on Tuesday.
One option under consideration is revising South Africa's tariff schedule to align import duties with World Trade Organization most-favored-nation standards, Ayabonga Cawe, the commissioner of the country's International Trade Administration Commission told lawmakers on Tuesday.
"For completely built-up passenger vehicles, the bound rates there are at 50%, our duties at the moment are at around 25%," Cawe said, according to Bloomberg.
On components, there is some room to maneuver of between 10% and 12%, depending on what the origin market is, Cawe said.
In 2024, vehicles from China and India accounted for 53% and 22% of South Africa's total vehicle imports, respectively, Bloomberg noted.
Over the past four years, South Africa's vehicle imports from China surged 368%, while imports from India grew 135%. Competition is fiercest in the entry-level market, where low-cost imports are squeezing domestic manufacturers' profit margins, the report said.
The South African automotive landscape is rapidly evolving, with Chinese car brands demonstrating increasing market appeal, according to a Deutsche Bank research note last week.
In December, total vehicle sales in South Africa rose 19% year-on-year to 48,983 units. This contributed to robust full-year 2025 sales growth of 16%, reaching 596,856 units.
Among Chinese brands, Chery (HKG: 9973) and GWM (HKG: 2333, SHA: 601633) maintain the largest operational presence in South Africa.
Chery sold 46,887 vehicles in South Africa in 2025, a 98.0% year-on-year increase; GWM sold 27,243 units, a 45.3% year-on-year increase, according to data from market research firm MarkLines.
On January 23, Nissan Motor announced that it had reached an agreement with Chery regarding the latter's acquisition of its production assets in Rosslyn, Pretoria.
Chery South Africa will acquire the land, buildings, and related assets of the Nissan plant, including its adjacent stamping facility, by mid-year.
