South Africa mulls tariffs of up to 50% on vehicles from China, India
cnevpost.com, 29 Jan '26
South Africa is considering imposing tariffs of up to 50% on vehicles imported from China and India, amid a global intensification of protectionist measures.
The Department of Trade, Industry and Competition is conducting an internal review to assess potential measures to curb imports that policymakers say are harming South Africa's domestic manufacturing sector, according to a local daily on 27th January.
One option under consideration is a revision of South Africa's tariff schedule to align import duties with World Trade Organization most-favoured-nation standards, Ayabonga Cawe, the Commissioner of the country's International Trade Administration Commission, told lawmakers on 27th January.
"For completely built-up passenger vehicles, the bound rates there are at 50%, while our duties at the moment are at around 25%," Cawe said, according to a local daily.
On vehicle components, there is scope for adjustment of between 10% and 12%, depending on the country of origin, Cawe added.
In 2024, vehicles from China and India accounted for 53% and 22% of South Africa's total vehicle imports, respectively, the local daily reported.
Over the past four years, South Africa's vehicle imports from China increased by 368%, while imports from India rose by 135%. Competition has been strongest in the entry-level segment, where low-cost imports have affected the profit margins of domestic manufacturers, the report noted.
According to a bank's research note released last week, Chinese car brands have increased their presence in South Africa's automotive market.
In December, total vehicle sales in South Africa rose 19% year-on-year. This contributed to full-year 2025 vehicle sales growth of 16%.
Among Chinese brands operating in South Africa, Chery and GWM account for the largest share of activity.
Chery recorded a 98.0% year-on-year increase in vehicle sales in South Africa in 2025, while GWM reported a 45.3% year-on-year increase, according to data from said research firm.
On January 23rd, Nissan Motor announced that it had reached an agreement with Chery regarding the latter's acquisition of Nissan's production assets in Rosslyn, Pretoria.
Under the agreement, Chery South Africa will acquire the land, buildings, and related assets of the Nissan plant, including the adjacent stamping facility, by mid-year.