South Africa’s automotive sector finds itself at a critical crossroads as government weighs measures to protect local vehicle manufacturing while maintaining momentum in the retail motor industry.
According to the Motor Industry Staff Association (MISA), any intervention must consider the broader economic impact rather than favouring one segment at the expense of another.
MISA, which represents more than 75 000 employees across the retail motor industry, has welcomed the Department of Trade, Industry and Competition’s internal review into possible protective measures for the automotive sector. However, it cautions against decisions that could undermine the retail market, particularly as Chinese and Indian brands continue to generate employment and stimulate competition.
“It is late in the game for the South African Government to consider imposing tariffs of up to 50% on vehicles from China and India. Government should look at the entire economy and equally support the retail motor industry where these brands have been creating jobs,” says Martlé Keyter, MISA’s Chief Executive Officer: Operations.
Rather than restricting imports, MISA believes government efforts should focus on encouraging these brands to invest locally. This includes manufacturing vehicles, parts and components in South Africa to expand employment opportunities and strengthen the supply chain.
MISA recently welcomed Chery’s acquisition of Nissan’s production plant in Rosslyn, Pretoria, which is expected to absorb most of Nissan’s affected employees and support the surrounding supplier network. The association has also urged new Chinese and Indian brands entering the market in 2025 to establish wider dealership networks to offset job losses caused by the closure of underperforming dealerships tied to traditional brands.
“The influx of Chinese and Indian brands stimulated the local market and created massive competitiveness. The result, new vehicle sales records for three consecutive months at the end of 2025, not only surpassing pre-pandemic levels for the first time but also reaching highs not seen in a decade,” says Martlé.
Currently, around 53 percent of vehicles sold in South Africa are imported from India, while Chinese imports account for approximately 22 percent of the market, underlining the growing influence of these regions on the local automotive landscape.
