Quick Takeaways
- South Africa vehicle import tariffs are under review as imports from China and India surge sharply.
- The move signals a tougher trade stance to protect domestic automotive manufacturing.
South Africa vehicle import tariffs may be raised to as high as 50% as the government weighs stronger trade defenses against a rapid influx of vehicles from China and India. Policymakers argue that rising imports are putting sustained pressure on local manufacturing capacity and profitability.
The Department of Trade, Industry and Competition is conducting an internal assessment of policy tools to slow vehicle imports that are increasingly dominating the domestic market..
South Africa Vehicle Import Tariffs Under WTO Framework
One proposal involves revising the country’s tariff schedule to better reflect World Trade Organization most-favored-nation limits. Ayabonga Cawe, commissioner of the International Trade Administration Commission, told lawmakers that tariff ceilings allow for significant increases.
“For completely built-up passenger vehicles, the bound rates there are at 50%, our duties at the moment are at around 25%,” Cawe said. He added that duties on components could also be adjusted by 10% to 12%, depending on the country of origin.
Import Growth from China and India Accelerates
China and India have rapidly expanded their footprint in South Africa’s vehicle market. In 2024, vehicles sourced from China accounted for 53% of total imports, while India contributed 22%. Over the past four years, imports from China surged 368%, and shipments from India increased 135%.
Competition is most intense in the entry-level segment, where lower-priced imports are compressing margins for domestic manufacturers and reshaping consumer buying patterns.
Market Shifts and Brand Expansion
South Africa’s automotive market is undergoing structural change as Chinese brands gain traction. A recent research note from Deutsche Bank highlighted the growing appeal of Chinese vehicles among local buyers.
Total vehicle sales rose 19% year-on-year in December to 48,983 units, supporting full-year 2025 growth of 16% to 596,856 units. Among Chinese automakers, Chery and GWM maintain the largest operational presence in the country.
Manufacturing Assets and Local Production
On January 23, Nissan Motor announced an agreement with Chery covering the acquisition of its production assets in Rosslyn, Pretoria. Chery South Africa will take ownership of the land, buildings, and associated facilities, including a nearby stamping plant, by mid-year.
As South Africa vehicle import tariffs remain under review, the outcome is expected to influence pricing, investment decisions, and the balance between imports and local production across the automotive value chain.
The Department of Trade, Industry and Competition is conducting an internal assessment of policy tools to slow vehicle imports that are increasingly dominating the domestic market..
South Africa Vehicle Import Tariffs Under WTO Framework
One proposal involves revising the country’s tariff schedule to better reflect World Trade Organization most-favored-nation limits. Ayabonga Cawe, commissioner of the International Trade Administration Commission, told lawmakers that tariff ceilings allow for significant increases.
“For completely built-up passenger vehicles, the bound rates there are at 50%, our duties at the moment are at around 25%,” Cawe said. He added that duties on components could also be adjusted by 10% to 12%, depending on the country of origin.
Import Growth from China and India Accelerates
China and India have rapidly expanded their footprint in South Africa’s vehicle market. In 2024, vehicles sourced from China accounted for 53% of total imports, while India contributed 22%. Over the past four years, imports from China surged 368%, and shipments from India increased 135%.
Competition is most intense in the entry-level segment, where lower-priced imports are compressing margins for domestic manufacturers and reshaping consumer buying patterns.
| Source Country | Share of Total Vehicle Imports (2024) | Import Growth (Last Four Years) |
|---|---|---|
| China | 53% | 368% |
| India | 22% | 135% |
Market Shifts and Brand Expansion
South Africa’s automotive market is undergoing structural change as Chinese brands gain traction. A recent research note from Deutsche Bank highlighted the growing appeal of Chinese vehicles among local buyers.
Total vehicle sales rose 19% year-on-year in December to 48,983 units, supporting full-year 2025 growth of 16% to 596,856 units. Among Chinese automakers, Chery and GWM maintain the largest operational presence in the country.
Manufacturing Assets and Local Production
On January 23, Nissan Motor announced an agreement with Chery covering the acquisition of its production assets in Rosslyn, Pretoria. Chery South Africa will take ownership of the land, buildings, and associated facilities, including a nearby stamping plant, by mid-year.
As South Africa vehicle import tariffs remain under review, the outcome is expected to influence pricing, investment decisions, and the balance between imports and local production across the automotive value chain.
Industry reports & Public Disclosures | GIA Analysis
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