Ramaphosa warns Trump's tariffs highlight urgency to diversify vehicle exports
Ramaphosa urges the auto sector to reduce reliance on US exports.
BMW's new hybrid model aligns with green mobility priorities.
Government pledges incentives for electric vehicles (EVs) production and mineral processing.
President Cyril Ramaphosa has warned that the newly announced tariffs by the US could pose significant risks to SA's automotive exports, urging the sector to diversify its markets and increase domestic value creation.
A 30% tariff on SA's exports to the US is set to be implemented on 1 August.
Speaking at the launch of BMW's new X3 plug-in hybrid electric vehicle at its Rosslyn plant in Pretoria on Thursday, Ramaphosa praised the company's continued investment in the country but cautioned that reliance on a few export destinations, such as the US and Europe, could leave the local industry exposed.
'The recent announcement on tariffs by the US, of course, has a huge impact on all of us,' said Ramaphosa.
It further underscores the need for us to diversify our export base and to accelerate domestic value creation as well.
President Cyril Ramaphosa
He said while BMW's decision to export the new X3 to Europe was welcomed, SA must also expand its footprint across the continent, particularly within the Southern African Development Community.
'We need to open our eyes and our ears and see where else our vehicles can go,' the president said.
SA's automotive sector contributes 4.9% to the country's GDP and supports more than 115 000 direct jobs. Ramaphosa described the industry as the 'lead spine' of the country's industrial strategy and said the BMW Group's role in its development was both longstanding and crucial.
He said BMW's decision to produce hybrid vehicles locally aligns with the country's transition to a low-carbon economy and the global push towards green mobility.
'We are committed and determined to ensure that there is an enabling regulatory and policy environment to make it easier for companies like BMW to continue to innovate,' he said.
This includes support through the Automotive Production and Development Programme, the Electric Vehicle White Paper, and targeted incentives for battery cell production, clean mobility research and critical mineral beneficiation.
Ramaphosa also praised the company's broader economic contribution, including its training academy, the Youth Employment Service programme and its investment in digital skills through its IT hub.
He said BMW's continued presence and reinvestment, including its R4.2 billion pledge at the SA Investment Conference, was a sign of trust in local workers, who the company refers to as 'associates'.
'You are now going to be producing a high-end vehicle for the world market,' he said to the BMW staff at the plant.
It will come from your hands, as associates of this company.
The Rosslyn plant was BMW's first production facility built outside Germany and has operated in the country for more than 50 years. Ramaphosa described the plant as a model of industrial transformation, job creation and inclusive growth.
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