During a radio interview on 24 April, Trade, Industry and Competition Minister ParksTau announced that South Africa is considering additional incentives for theautomotive industry to cushion the impact of potential tariffs imposed by the UnitedStates.
Tau told Power FM, "What we're currently considering is the possibility of expandingthe automotive industry production plan so that we're able to mitigate the impact onour industry," and went on to say, "We're currently modelling what the potentialpackage could be for the auto sector, but also for other sectors, so that we can do itwithin the means of the country to buffer the impact."
The Automotive Production and Development Programme (APDP) is a key incentivescheme supporting investment, innovation, and job creation in South Africa'sautomotive sector. It provides rebates on customs duties and rewards manufacturersbased on production volume.
In 2024, the country exported about R35 billion worth of vehicles to the US'its third-largest export market'accounting for 6.5% of total vehicle exports.
The National Association of Automobile Manufacturers of South Africa (naamsa)warned that the 25% tariff cannot be absorbed by manufacturers.
Major automakers such as BMW, Ford, Isuzu, Mercedes-Benz, Nissan, and Toyotaoperate plants in South Africa that export globally, including to the US. Theseoperations now face significant challenges due to the proposed tariff.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
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