SA's automotive sector changing fast with cheaper Chinese brands entering market
Traditional brands are struggling, and many are starting to close down.
BMW has had its own challenges.
eNCA Money Desk anchor, Rofhiwa Madzena, spoke with BMW SA CEO Peter van Binsbergen about the current trends and the auto manufacturer's plan of action to deal with the changes.
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IOL News
an hour ago
- IOL News
BRICS nations to denounce Trump tariffs
BRICS leaders meeting in Rio de Janeiro from Sunday are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East. Image: AFP BRICS leaders meeting in Rio de Janeiro from Sunday are expected to decry Donald Trump's hardline trade policies, but are struggling to bridge divides over crises roiling the Middle East. Emerging nations representing about half the world's population and 40% of global economic output are set to unite over what they see as unfair US import tariffs, according to sources familiar with summit negotiations. Since coming to office in January, Trump has threatened allies and rivals alike with a slew of punitive tariffs. His latest salvo comes in the form of letters due to be sent starting Friday informing trading partners of new tariff rates expected next week on July 9. Diplomats from 11 emerging nations, including Brazil, Russia, India, China and South Africa, have been busy drafting a statement condemning the economic uncertainty. Any final summit declaration is not expected to mention the United States or its president by name. But it is expected to be a clear political shot directed at Washington. "We're anticipating a summit with a cautious tone: it will be difficult to mention the United States by name in the final declaration," Marta Fernandez, director of the BRICS Policy Center at Rio's Pontifical Catholic University said. This is particularly the case for China, which has only recently negotiated with the US to lower steep tit-for-tat levies. "This doesn't seem to be the right time to provoke further friction" between the world's two leading economies, Fernandez said. Xi no show Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to Western power. But the summit's political punch will be depleted by the absence of China's Xi Jinping, who is skipping the annual meeting for the first time in his 12 years as president. "I expect there will be speculation about the reasons for Xi's absence," said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank. "The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing," said Hass. The Chinese leader will not be the only notable absentee. War crime-indicted Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin. Hass said Putin's non-attendance and the fact that India's prime minister will be a guest of honor in Brazil could also be factors in Xi's absence. "Xi does not want to appear upstaged by Modi," who will receive a state lunch, he said. "I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors." Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage. In the year to November 2025, Brazil will have hosted a G20 summit, a BRICS summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year, in which he is expected to run. Middle path Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel is also skipping the meeting. A source familiar with the negotiations said the BRICS countries were still in disagreement over how to respond to the wars in Gaza and between Iran and Israel. Iranian negotiators are pushing for a tougher collective stance that goes beyond referencing the need for the creation of a Palestinian state and for disputes to be resolved peacefully. Artificial intelligence and health will also be on the agenda at the summit. Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, by Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia. Analysts say that it has given the grouping more potential international punch. But it has also opened many new fault lines. Brazil hopes that countries can take a common stand at the summit, including on the most sensitive issues. "BRICS (countries), throughout their history, have managed to speak with one voice on major international issues, and there's no reason why that shouldn't be the case this time on the subject of the Middle East," Brazil's Foreign Minister Mauro Vieira told AFP. AFP
The Citizen
3 hours ago
- The Citizen
VW drops price on T-Cross base model to take fight to the Chinese
Volkswagen banks on brand's rich local heritage to fend off onslaught from the People's Republic. In February this year Volkswagen South Africa (VWSA) announced that were adding two new entry-level derivatives to their top selling T-Cross line-up. A 1.0 TSI 70kW Base fitted with a five-speed manual transmission and a 1.0 TSI 85kW Base with a double clutch setup, priced at R400 700 and R418 200 respectively. Fast forward some five months, and an invite arrived for us to go spend some time with VWSA and get acquainted with the VW T-Cross in the metal this time. A 1.0 TSI 70kW Base was dropped off at The Citizen Motoring's office for us to use for a few weeks and to get to the event as part of an impromptu media launch-type drive. Psychological R400k barrier Now while we expected the spec to be exactly that same, what we did not expect was that VWSA had quietly dropped the price on the 70kW Base model to R399 900. Citing unrelenting market pressure from the Chinese, who are extremely active in this segment, as one of the reasons they wanted the entry level T-Cross to come in under the psychological R400 000 barrier. This makes perfectly good business sense especially when you consider that the VW T-Cross is 100% under fire from the likes of Chery with their Tiggo 4 Pro. Offering seven model derivatives ranging in price from R269 900 to R386 900 it's easy to see why the Chery Tiggo 4 is shooting the lights out. This Chinese offering has in fact now moved up to be South Africa's third best-selling passenger car behind the VW Polo Vivo and Toyota Corolla Cross. The VW T-Cross Base features an 8-inch digital cockpit. Picture: Mark Jones Not flashy, but solid The 1.0 TSI 70 kW Base VW T-Cross comes kitted with the basics like a 8-inch digital cockpit, App-Connect, multi-function steering wheel, 2 USB ports in front, two speakers, central locking, childproof locks on rear doors, interior cloth trim for seats and door trim, air-conditioner, hill assist, 16-inch wheels and a tyre pressure monitoring system. While not flashy in any way, all the controls fall easy to hand, and are easy to use in typical VW fashion. The Chery Tiggo 4 offers 108kW and 210Nm, and the 70kW and 175Nm on tap from the 1.0 TSI Base is never going to feel racy. And it isn't. VWSA claim a 0-100km/h sprint time of 11.5 seconds and a top speed of 180 km/h. But what is maybe of more importance is that the claimed fuel consumption number is just 5.9-litres per 100km. And here the Chery Tiggo 4 falls short. ALSO READ: Facelift Volkswagen T-Cross base models finally priced VW T-Cross banks on brand heritage So, while seemingly outgunned on price and spec on paper, VWSA are counting on their legacy, reputation for quality. And on people still having the desire to own a Volkswagen. It's a tough ask in a very price sensitive part of the market. But this fight might pass down to the new locally produced Tengo compact crossover. It will hit the market in 2027 as a more affordable replacement for the overseas sourced T-Cross. The VW T-Cross comes standard with a three-year/120 000km warranty and three-year/45 000km service plan.
IOL News
3 hours ago
- IOL News
BRICS nations voice 'serious concerns' over Trump tariffs
A workers walks in the open area of the Modern Art Museum (MAM) where the BRICS summit 2025 will be held in Rio de Janeiro, Brazil on July 3, 2025. Image: Mauro PIMENTEL/AFP BRICS leaders meeting in Rio de Janeiro on Sunday are expected to decry US President Donald Trump's "indiscriminate" trade tariffs, saying they are illegal and risk hurting the global economy. Emerging nations, which represent about half the world's population and 40 percent of global economic output, have united over "serious concerns" about US import tariffs, according to a draft summit statement obtained by AFP on Saturday. Since coming to office in January, Trump has threatened allies and rivals alike with a slew of punitive duties. President Cyril Ramaphosa has arrived in Brazil at the invitation of President Luiz Inacio Lula da Silva of Brazil, where he will attend the XVII #BRICSSummit on 6 - 7 July 2025 in Rio de Janeiro. Image: GCIS Video Player is loading. 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Advertisement Next Stay Close ✕ His latest salvo comes in the form of letters informing trading partners of new tariff rates that will soon enter into force. The draft summit declaration does not mention the United States or its president by name, and could yet be amended by leaders gathering for talks Sunday and Monday. But it is a clear political shot directed at Washington from 11 emerging nations, including Brazil, Russia, India, China and South Africa. "We voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO (World Trade Organization) rules," the draft text says. It warns that such measures "threaten to further reduce global trade" and are "affecting the prospects for global economic development." Xi no show Conceived two decades ago as a forum for fast-growing economies, the BRICS have come to be seen as a Chinese-driven counterbalance to Western power. But the summit's political punch will be depleted by the absence of China's Xi Jinping, who is skipping the annual meeting for the first time in his 12 years as president. That absence has prompted fevered speculation in some quarters. "The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing," said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank. The Chinese leader will not be the only notable absentee. War crime-indicted Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin. Hass said Putin's non-attendance and the fact that Indian Prime Minister Narendra Modi will be a guest of honor in Brazil could also be factors in Xi's absence. "Xi does not want to appear upstaged by Modi," who will receive a state lunch, he said. "I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors." Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage. In the year to November 2025, Brazil will have hosted a G20 summit, a BRICS summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year, in which he is expected to run. Lula warmly welcomed leaders and dignitaries on Saturday, including China's Premier Li Qiang, as the leftist president hosted a pre-summit business forum in Rio. "Faced with the resurgence of protectionism, it is up to emerging countries to defend the multilateral trade regime and reform the international financial architecture," Lula told the event. Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel, is also skipping the meeting and will be represented by Foreign Minister Abbas Araghchi. A source familiar with the negotiations said Iran had sought a tougher condemnation of Israel and the United States over their recent bombing of Iranian military, nuclear and other sites. But one diplomatic source said the text would give the "same message" that BRICS delivered last month. Then Iran's allies expressed "grave concern" about strikes against Iran, but did not explicitly mention Israel or the United States. Artificial intelligence and health will also be on the agenda at the summit. Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia.
