South Africa is reviewing potential tariff hikes on imported vehicles from China and India, considering duties of up to 50% on fully assembled passenger cars. The Department of Trade, Industry and Competition is evaluating measures aimed at protecting local manufacturers from low-cost imports, according to an internal review by the International Trade Administration Commission (ITAC).
Ayabonga Cawe, ITAC’s commissioner, told lawmakers that South Africa’s current applied duty on fully built vehicles stands at around 25%, while the World Trade Organization allows a bound rate of 50%. He added that tariffs on vehicle components could be adjusted within a 10% to 12% range, depending on their country of origin.
Data for 2024 indicate that vehicles from China accounted for 53% of South Africa’s imports, with India contributing 22%. Imports from China have surged by 368% over the past four years, and those from India have risen by 135%. The entry-level segment has been most affected, as inexpensive imports squeeze the profit margins of domestic producers.
Recent research highlights the growing appeal of Chinese brands in the South African market. In December, vehicle sales rose 19% year-on-year to 48,983 units, boosting total sales for 2025 to 596,856 units, a 16% increase over the previous year. Chery sold 46,887 vehicles in 2025, nearly doubling its sales annually, while GWM recorded 27,243 vehicle sales, a 45.3% rise.
Source: CNEV Post
