South Africa is weighing the introduction of tariffs of up to 50% on vehicles imported from China and India, as the government moves to protect domestic manufacturing amid a surge in low-cost foreign vehicles.
According to a Bloomberg report published on Tuesday, the Department of Trade, Industry and Competition (DTIC) has launched an internal review to assess measures aimed at curbing imports that policymakers believe are undermining local automotive production.
One option under consideration is revising South Africa’s tariff schedule to bring import duties in line with World Trade Organization (WTO) most-favored-nation limits, said Ayabonga Cawe, commissioner of the International Trade Administration Commission (ITAC), while briefing lawmakers.
“For completely built-up passenger vehicles, the bound rates are at 50%, while our current duties are around 25%,” Cawe said. He added that tariffs on vehicle components could also be adjusted, with room to increase duties by 10% to 12%, depending on the country of origin.
Imports Surge, Pressure Local Industry
Vehicle imports from China and India have grown sharply in recent years. In 2024, Chinese-made vehicles accounted for 53% of South Africa’s total vehicle imports, while India contributed 22%.
Over the past four years, imports from China surged by 368%, while those from India rose 135%, intensifying competition,particularly in the entry-level vehicle segment. Policymakers say this has squeezed profit margins for domestic manufacturers and raised concerns about long-term industrial sustainability.
Chinese Brands Gain Ground
Despite the concerns, Chinese automakers have rapidly expanded their footprint in South Africa. A recent Deutsche Bank research note highlighted the growing appeal of Chinese brands in the local market, driven by competitive pricing and improved product quality.
South Africa’s auto market has also shown strong momentum. Vehicle sales rose 19% year-on-year in December, reaching 48,983 units, contributing to full-year 2025 sales growth of 16%, with total sales hitting 596,856 vehicles.
Among Chinese manufacturers, Chery and Great Wall Motor (GWM) have emerged as dominant players. Chery sold 46,887 vehicles in 2025, marking a 98% year-on-year increase, while GWM recorded 27,243 units, up 45.3%, according to data from MarkLines.
Manufacturing Shifts on the Horizon
In a notable development, Nissan Motor announced on January 23 that it had reached an agreement with Chery over the acquisition of Nissan’s production assets in Rosslyn, Pretoria. The deal will see Chery South Africa acquire the land, buildings, and associated facilities including a stamping plant by mid-2026.
The move underscores how global automotive dynamics are reshaping South Africa’s industry, even as the government considers tougher trade protections.
As the review continues, the proposed tariffs signal a potential shift toward a more protectionist stance, with significant implications for consumers, manufacturers, and international trade partners alike.
