Vehicle exports to the USA take a hit

This delt a significant blow to production volumes and supplier networks. “The reimposition of these tariffs is deeply disappointing and has far reaching implications. Without urgent trade remedy, the socio-economic fallout could be severe,” says Mikel Mabasa, CEO of The Automotive Business Council (naamsa) in reaction to the USA’s imposed tariffs on South African vehicle exports to the country.

Despite the effects of the 25% automotive tariffs imposed in April 2025, vehicle exports in general have displayed notable resilience. Export volumes for July 2025 decreased by 677 units, or 1.9% from the 36 056 units exported in July 2024 to 35 379 units exported in July 2025.

The resilience reflects the sector’s expanded global reach to over 109 markets for vehicle exports in 2024 – leveraging long-standing trade relationships, among others. However, pressure is mounting as other export-orientated nations begin redirecting their products to South Africa’s established markets.

“South Africa’s automotive industry has long relied on the strength of its export engine to drive production, attract investment and create high-value employment. The current environment has tested that model – but our ability to maintain solid export volumes amid escalating trade uncertainty demonstrates the commitment of our OEMs to South Africa’s industrial base,” Mikel adds.

The new-vehicle sales for July are released as the sector absorbs confirmation of the reimposition of a 30% tariff on general South African exports to the United States, set to take effect from 07 August 2025.

This follows the initial implementation of the 25% Section 232 tariffs on automotive products in April 2025. While most other trading partners have secured reduced tariffs, South Africa finds itself at a relative disadvantage, having been unable to secure preferential terms over months of negotiations.

For South Africa’s automotive sector – already bearing the brunt of a sharp export contraction to the US market in the first half of 2025 – this latest development cements a competitiveness blow and a relative loss of competitiveness as peer countries retain or negotiate lower rates. Although some sectors, such as base metals, will remain largely exempt, the automotive industry stands exposed, both in immediate volumes and long-term market access.

He says the new tariffs now formalised and taking effect within days is a disappointing blow. “We are not giving up on the US market – but we must now also look to deepen regional trade, expand market access in Africa and Asia, and accelerate the roll-out of South Africa’s NEV-transition strategy to attract new investment and safeguard production capacity,” Mikel says.

Import statistics:

• The automotive industry contributes 5.2% to GDP (3.2% manufacturing and 2.01% retail).
• In 2024, the export of vehicles and automotive components reached a record level of R268.8 billion, equating to 14.7% of South Africa’s total exports.
• The industry accounts for 22.6% of the country’s manufacturing output.
• Vehicles and components are exported to 155 international markets.
• The manufacturing segment currently employs about 115 000 people.
• Combined with the industry’s strong multiplier effect, the industry is responsible for approximately 498 000 jobs across the South African economy’s formal sector.