Latest news with #NationalAssociationofAutomobileManufacturersofSouthAfrica
Arabian Post
15-07-2025
- Automotive
- Arabian Post
Exports Collapse: South African Cars Shut Out of U.S. Market
South African vehicle shipments to the United States have plunged after U. S. import tariffs were escalated, posing a serious threat to jobs and industrial hubs across the country. Export volumes dropped by 73 per cent in the first quarter of 2025 and declined a further 80 per cent in April and 85 per cent in May, according to figures from the National Association of Automobile Manufacturers of South Africa. The tariffs, introduced under U. S. trade policy changes that began on 2 April and expanded in April and May, include a 25 per cent levy on cars, widened to cover auto components, and a looming 30 per cent rate on all South African vehicle imports from 1 August. These measures have effectively stripped away benefits previously enjoyed under the African Growth and Opportunity Act, under which U. S.-bound South African vehicles had duty-free access. Naamsa CEO Mikel Mabasa warned that the crash in exports is 'not just a trade issue – it's a socio‑economic crisis in the making', highlighting the potential for factory shutdowns and mass unemployment, particularly in assembly centres such as East London, where the industry forms the backbone of local economies. South Africa's auto sector accounted for 64 per cent of AGOA trade with the U. S. in 2024, generating 28.6 billion rand in revenue. ADVERTISEMENT The export decline has already begun, with only 1,703 vehicles and light commercial units shipped in the first quarter of 2025, compared to 6,840 in the same period of 2024—a drop of more than 75 per cent, according to BusinessLIVE. The situation deteriorated further in subsequent months, pushing total declines beyond 87 per cent in certain reports. Industry leaders warn that automakers such as Mercedes‑Benz South Africa may be forced to scale back operations, absorb rising production costs or even delay future investments. The wider supply chain feels the strain too; component manufacturers, logistics firms and related service providers are all facing potential closures and layoffs. Efforts to negotiate relief have so far foundered. A diplomatic proposal submitted in May envisaged a mutually beneficial trade package—including a duty‑free quota of 40,000 South African vehicles per year and duty‑free access for locally produced components—but it failed to prevent the August tariff imposition. Trade and Industry Minister Parks Tau confirmed in parliamentary responses that ongoing negotiations include broader requests, such as increased U. S. investment in South African liquefied natural gas in exchange for auto exemptions. South African President Cyril Ramaphosa has criticised the U. S. tariff rating as misguided, noting that half of U. S. exports to South Africa are untaxed and the remainder attract an average tariff of only 7.6 per cent. He remains optimistic that diplomacy can mitigate losses—stressing that the August 1 date could still bring modifications, contingent on negotiations. The broader economic impact is already being projected. South Africa's GDP growth estimate for 2025 was reduced by 0.3 percentage points to 1.2 per cent in May, a downgrade partly attributed to the fallout from these tariffs. The South African Reserve Bank has responded with a repo rate cut to 7.25 per cent, seeking to support domestic activity. With the U. S. set to enforce its tariffs under Section 232, targeting vehicles, auto parts, steel and aluminium, the South African rand has remained volatile—trading near 18 to the dollar—amid investor uncertainty. Meanwhile, South Africa is fast-tracking plans to diversify export partnerships, targeting markets in Asia, Europe, the Middle East and within Africa. Naamsa has called for government support to cushion the economic blow, including incentives for exporters and support schemes for affected workers. Industry analysts argue that while diversification holds promise, it cannot be implemented swiftly enough to offset the immediate losses from the U. S. market collapse.
The Citizen
15-07-2025
- Automotive
- The Citizen
Devastating impact of US tariffs on SA automotive sector even before implementation
South Africa's automotive sector already reflects the devastating impact of the US tariffs and a socio-economic crisis in the making. The announcement and anticipation of the US tariffs already had a devastating and immediate impact on trade performance, even before the tariffs were implemented. Vehicle exports to the US dropped by 73% in the first quarter of 2025, followed by a further decline of 80% in April and 85% in May. Mikel Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa (Naamsa), the Automotive Business Council, says this represents a risk of a direct loss of vehicle and component export volumes and annual export earnings, which would be difficult to recover in the short term. And it is not just the export volumes. Mabasa says this is not just a trade issue, but a socio-economic crisis in the making, as the US tariffs directly threaten thousands of jobs in the automotive sector, disrupt hard-won industrial capabilities, and risk devastating communities, such as East London, where the auto sector forms the economic heartbeat of the town. 'If we cannot retain export markets like the US, we risk turning vibrant industrial hubs into ghost towns.' Mabasa says in a press statement that Naamsa noted the official communication from US President Donald Trump to the South African government last week to notify the country of the unilateral 30% reciprocal trade tariff, as well as President Cyril Ramaphosa's formal response that confirmed South Africa's diplomatic and strategic approach to this matter. ALSO READ: How will the 25% US import tariff affect SA's auto industry? Automotive sector particularly vulnerable to 25% sectoral tariff 'South Africa's automotive sector is particularly vulnerable to the 25% sectoral tariff imposed under Section 232 of the US Trade Expansion Act of 1962, which specifically targets automotive exports. This escalation in trade tensions poses a serious threat to one of South Africa's most globally integrated and export-oriented industries.' He says the US has consistently been South Africa's second-largest trading partner and key export destination for vehicles manufactured in South Africa. Since the inception of the African Growth and Opportunity Act [Agoa], the automotive industry has benefited from substantial two-way trade and investment. In 2024, the auto sector accounted for 64% of all Agoa trade between South Africa and the US, generating R28.6 billion in export revenue, with 24 681 vehicles exported to the US under Agoa. The impact is also not on the sector itself, but also on original equipment manufacturers, value chains, and local economy. Mabasa says these tariff disruptions place major pressure on original equipment manufacturers [OEMs], who have long-standing industrial commitments with South Africa and invested significantly in local manufacturing, skills development and export infrastructure. 'The ripple effects of production loss due to disappearing export markets will be felt throughout the entire automotive value chain, from component manufacturers to logistics providers and across the thousands of workers and families who depend on the sector for their livelihoods. ALSO READ: BMW SA 'not exposed' to current US tariff uncertainty Finding new export partners will not happen overnight 'Export diversification and finding new markets is not something that can be achieved overnight. Our global competitors are already redirecting their exports into markets we traditionally serve. This intensifies the pressure on our OEMs, who must now absorb rising costs, reduce production and reconsider future investments.' He points out that the automotive sector is a cornerstone of the economy, contributing an impressive 22.6% to total domestic manufacturing output and directly supporting over 110 000 formal sector jobs. 'The tariffs – and the broader uncertainty in US-Africa trade relations – strike at the heart of South Africa's industrialisation agenda and threaten future investment in high-value manufacturing. They also undermine the significant progress made under Agoa to deepen US-Africa trade.' Mabasa emphasises that Naamsa welcomes government's continued diplomatic engagement with the US, including discussions held on the sidelines of the US-Africa Summit in Luanda in June and the submission of South Africa's Framework Deal in May to address the concerns raised by the US government. 'We urge both governments to accelerate negotiations toward a balanced, rules-based trade agreement. We are encouraged by early proposals for a quota of 40 000 duty-free vehicle units per year, which would allow us to retain our footprint in this key market. It is vital that we use this opportunity to preserve the business case for continued investment.' He says Naamsa continues to engage closely with government counterparts, providing data and strategic insights to support trade negotiations, and is also exploring additional export markets beyond the US urgently. ALSO READ: US tariff of 30% on SA exports: where to now? Time to prepare for more uncertain and competitive landscape in automotive sector Although Mabasa expresses optimism about diplomacy, he emphasises the need to prepare for a more uncertain and competitive global landscape. The US market remains crucial for South Africa, not only for trade flows but also for industrial stability and investor confidence. In addition, Mabasa points out that Naamsa is equally concerned about the impact of these developments on people's livelihoods. 'Behind every tariff statistic are real people – autoworkers, supply chain technicians, logistics operators and their families. Nowhere is this more visible than in East London, a community that has grown and thrived on the back of automotive exports. The erosion of this trade threatens to unravel decades of socio-economic progress. 'We urge all parties involved in the diplomatic negotiations to recognise the strategic and social importance of safeguarding mutually beneficial trade frameworks like Agoa and to avoid short-term decisions that carry long-term consequences for vulnerable regions. 'Naamsa remains deeply committed to South Africa's economic growth and industrial development, and we are optimistic that a constructive path forward will be reached through continued engagement and collaboration.'
The Citizen
07-07-2025
- Automotive
- The Citizen
South Africa's top 20 best-sellers of mid-year 2025 revealed
Although largely dominated by imports, the 10 best-selling models were split evenly between imported vehicles and those locally assembled. Having so far failed to record a downturn since October last year, South Africa's new vehicles ended the first six months of 2025 on a total of 232 474 vehicles sold compared to the 287 167 sold 12 months ago. Positive outlook While down, despite having breached 40 000 units every month, the lowest being 42 401 in April, the industry still seems on track to overtake the projected 500 000 mark this year in what will be the third consecutive year since the global pandemic. 'The domestic outlook for 2025 is expected to improve, driven by a revival in business and consumer sentiment stemming from improvements in the country's key economic indicators,' the National Association of Automobile Manufacturers of South Africa (Naamsa) said in its projection report for 2025 at the end of last year. ALSO READ: New vehicle sales finish first half of 2025 on a noteworthy high 'The South African Reserve Bank stated that risks to the country's growth outlook are assessed to be balanced, but that growth could be higher from 2025 onwards, given ongoing reforms, especially in the network sectors, such as electricity and transport. 'With an improved GDP growth rate of around 1.5% projected for 2025, the new vehicle market would likely improve by single digits compared to the level of 2024,' the statement concluded. With half the year gone, The Citizen now takes a look at the top 20 best-selling vehicles between January and June thus far, as well as the 10 performing brands. Mid-year top 20 best-selling vehicles POS MODEL TOTAL BEST MONTH 1. Toyota Hilux 16 526 June – 3 035 2. Ford Ranger 12 398 June – 2 318 3. Suzuki Swift 11 948 January – 2 628 4. Volkswagen Polo Vivo 11 310 January – 2 549 5. Isuzu D-Max 9 846 April – 2 250 6. Toyota Corolla Cross 9 576 June – 2 318 7. Hyundai Grand i10 8 581 March – 1 504 8. Toyota Starlet 7 330 January – 2 180 9. Chery Tiggo 4 Pro 7 297 June – 1 538 10 Suzuki Fronx 6 466 May – 1 219 11. GWM Haval Jolion 6 385 June – 1 113 12. Toyota Starlet Cross 5 225 January – 1 050 13. Mahindra Pik Up 5 079 March – 1 215 14. Nissan Magnite 5 072 March – 1 443 15. Kia Sonet 4 955 February – 877 16. Volkswagen Polo 4 809 March – 932 17. Toyota Urban Cruiser 4 247 January – 890 18. Suzuki Ertiga 4 349 June – 840 19. Toyota Fortuner 4 242 June – 878 20. Toyota HiAce 3 758 February – 711 Mid-year top 10 best-performing marques Toyota – 67 938 Suzuki – 34 461 Volkswagen Group – 29 366 Hyundai – 18 100 Ford – 16 662 Isuzu – 12 221 Great Wall Motors (GWM) – 11 835 Chery – 11 687 Mahindra – 9 611 Kia – 8 234 ALSO READ: New vehicle sales extended winning streak for a fifth time in May
The Citizen
01-07-2025
- Automotive
- The Citizen
New vehicle sales finish first half of 2025 on a noteworthy high
Aside from posting gains throughout the year, the local market has not experienced an downturn in sales for nine consecutive months. New vehicle extended its record gains in June, with BMW being one of the biggest surprises. Image: Charl Bosch The upwards momentum in South Africa's new vehicles sales showed no let in June, with the sixth consecutive increase in as many months, and ninth overall since October last year. 3 000 sales exceeded Repeating the results of May, the Toyota Hilux ended the month as the country's best-selling vehicle once again ahead of its arch rival, the Ford Ranger, but with sales of more than 3 000 units for the first time this year. Taking second place with an offset 2 318 versus the Hilux's 3 035, the Ranger beat-out the Toyota Corolla Cross and Volkswagen Polo Vivo, whose respective totals of 2 132 and 1 962 placed them third and fourth. ALSO READ: New vehicle sales extended winning streak for a fifth time in May Moving up two places from May, the Isuzu D-Max completed a locally manufactured top five with total sales of 1 678, followed by the sixth placed Chery Tiggo 4 Pro as the highest place imported vehicle with a total of 1 538. Completing an even split between in producing regions, the Hyundai Grand i10 dropped a notch to seventh on 1 484, while the Suzuki Swift recorded the biggest drop of five places from May to settle at eighth with an offset of 1 466. Rounding the top 10 off in a direct swap from last month, the GWH Haval Jolion placed ninth on 1 116 and the Suzuki Fronx 10th on 1 112 as the only other vehicle to amass four digit figures. Month in detail Winning back significant ground in May in coming the closest to the 50 000 mark since March's 49 493, the figures by National Association of Automobile Manufacturers of South Africa (Naamsa) for June showed an overall increase of 18.7% from last year's 40 621 to 47 294. After a mostly positive run in May, individual segments for June continued on the same trajectory, with passenger vehicle sales posting a 21.7% gain from 26 763 to 32 570, and light commercial vehicles an uptake of 14.9% to 12 159 from last year's 10 599. While medium-duty commercial vehicle remained on the same track as the latter segments with an increase of 24.7% from 523 to 652 units, heavy-duty trucks and buses dipped 3.1% from 2 005 to 1 943. Having lost ground in May, vehicle exports returned to positive territory in June with an uptake of 7.9% from 33 696 to 36 343. In total, dealer sales made-up 85.9% or 40 621 of the 47 294 vehicles sold, with the rest being split up as follows: Rental agencies: 8.2% Corporate Fleets: 3.2% Government: 2.7% Naamsa reaction 'For the first half of the year new vehicle sales were now 13.6% ahead of the corresponding period 2024, supported by and large by an influx of affordable imported models,' Naamsa said. 'The upbeat performance in domestic new vehicle sales builds on gains since the fourth quarter of 2024. 'This success was underpinned by a combination of favourable economic fundamentals, including decreasing interest rates following the South African Reserve Bank's 25 basis point cut May, a still-benign inflation backdrop and improved credit access across the market. In the same report, Naamsa CEO Mikel Mabasa remarked, 'the first half of 2025 has shown just how resilient and responsive our domestic market truly is. Strong consumer demand, supported by positive economic fundamentals, has helped the automotive sector deliver impressive growth amid global turbulence'. The association, however, warned that the second half of the year will present a more complex picture, saying, 'while domestic sales are likely to remain robust in the near term due to lagged effects of interest rate cuts and resilient consumer sentiment, consumers continue to drive demand for affordable, and high-specification models'. Changed top 10 best-selling marques Out of the top 10 best-selling brands, only the top three remained steady, with Toyota placing first on 11 690, Suzuki second on 5 221 and Volkswagen third on 4 973. In a reverse from May, Ford swapped places with Hyundai with sales of 3 058 versus 2 905, while GWM remained sixth on 2 288 ahead of its arch rival, Chery, with 2 101. Keeping its eighth place, Isuzu's 2 087 saw it place ahead of Mahinda's 1 483, with the biggest surprise being BMW's return to the top 10 with sales of 1 349 at the expense of Renault, Kia and Nissan. June Top 50 Best-Sellers Toyota Hilux – 3 035 Ford Ranger – 2 318 Toyota Corolla Cross – 2 132 Volkswagen Polo Vivo – 1 962 Isuzu D-Max – 1 678 Chery Tiggo 4 Pro- 1 538 Hyundai Grand i10 – 1 484 Suzuki Swift- 1 466 GWM Haval Jolion – 1 116 Suzuki Fronx – 1 112 Toyota Fortuner – 878 Mahindra Pik Up – 860 Toyota Starlet – 852 Suzuki Ertiga – 840 Toyota Vitz – 794 Nissan Magnite – 774 Volkswagen Polo – 756 Kia Sonet – 742 Toyota Urban Cruiser – 720 Omoda C5 – 693 Toyota Starlet Cross – 657 Toyota Land Cruiser 70-series – 615 Renault Kwid – 597 Toyota HiAce – 596 Volkswagen T-Cross – 588 Mahindra XUV 3X0 – 477 GWM Haval H6 – 456 Renault Kiger – 439 Hyundai Exter – 438 Nissan Navara – 403 Chery Tiggo 7 Pro – 401 Suzuki S-Presso – 379 Toyota Rumion – 375 Jetour Dashing – 373 GWM P-Series – 367 Suzuki Baleno – 360 Volkswagen Amarok – 354 Citroën C3 – 348 BMW X3 – 339 Jetour X70 Plus – 310 Ford Everest – 306 Ford Territory – 286 Hyundai i20 – 278 Volkswagen Tiguan – 273 Suzuki Jimny – 250 BMW 3 Series – 236 Jaecoo J7 – 230 Foton Tunland G7 – 224 Beijing X55 Plus – 215 Volkswagen Polo Sedan – 214 ALSO READ: Toyota Hilux and Suzuki Swift lead new vehicle sales in April
Daily Maverick
29-06-2025
- Automotive
- Daily Maverick
Why South Africa's EV ambitions are still stuck in low gear
Naamsa is rolling out a nationwide electric vehicle network but South Africa's road to electric vehicle adoption is still filled with red lights. Electric car sales topped 17 million worldwide in 2024, rising by more than 25% according to the International Energy Agency, but South Africa remains a slow starter in terms of this global trend. The National Association of Automobile Manufacturers of South Africa (Naamsa) thinks it's time to stop stalling. It's now laying the groundwork for a national network of EV charging stations, starting with 120 publicly accessible EV chargers along major transport routes. Forecourts on the frontline By geography and legacy alone, forecourts are perfectly positioned to capitalise on an EV transition, said Shivani Singh, chief projects officer at Naamsa. They've got the traffic, the location, the permits and the land. Yet South Africa has fewer than 400 publicly accessible EV charging stations. Compare that to the 4,800 licensed petrol stations across the country, and the gap between what's happening and what's possible makes itself clear. So, what's holding them back? 'There's a lot of things that face our retailers at the moment,' said Timothy Oliver, fuel specialist at Connect Group South Africa. Among the challenges are limited capital for the diversification of profit centres and limitations imposed by location and oil companies. The days of surviving on a single filling station are numbered, which complicates management. 'We are seeing that the average retailer won't just sit with one site, they'll probably own between five and 10 sites,' Oliver said. Naamsa plugs in This is where Naamsa's latest rollout could change things. The automotive industry body has begun work on a national network of 120 EV charging points, strategically positioned along key routes in the country, Singh said. The rollout will include both ACDC fast chargers, publicly accessible and available for use. It signals a commitment to usable public infrastructure for EVs to replace the broken plugs and barely functional charging stations currently scattered along South Africa's roads. Traditional hybrid EVs achieved the highest sales in 2023. Plug-in hybrid EV sales continued to grow and battery EV sales experienced rapid growth in 2023. (Source: Green Cape, Graph: Kara le Roux) The EV economy South Africa has the mineral wealth required for the EV supply chain but lacks the infrastructure to process or capitalise on it, according to Singh. 'Our EV market is in extremely early stages,' she said. 'We're starting to see the use of electric two-wheelers and three-wheelers for delivery purposes in the rest of Africa, but there's no EV passenger car assembly happening.' Essential for the manufacturing of EV batteries are cobalt, manganese and lithium. Africa holds more than half of the world's reserve for these minerals, said Yael Shafrir, associate director at Webber Wentzel. 'South Africa's Section 12V tax incentive, signed into law in December 2024, offers a 150% deduction for local manufacturers of EV parts, effective 1 March 2026. It's a signal: industrial policy and trade are finally talking to each other.' Leiandra da Silva, an economist at Nedbank, said South Africa's imports are growing at a faster rate than our exports at the moment, and growth in our key trade partners is not looking great either. Most EV charging hardware is imported from China, Singh said, making spare parts unavailable and repairs difficult. Naamsa's charging infrastructure rollout presents an opportunity for localisation. As a part of this project, the association is trying to partner existing charging service providers with local businesses. 'Together they can install the infrastructure, maintain it, but also start to produce components that go into it,' Singh said. It's a pragmatic move that aligns with the Department of Trade, Industry and Competition's automotive master plan and also offers an entry point for South African businesses to participate in the EV economy. How does this affect you? If all goes to plan, small businesses might get a piece of the EV pie through infrastructure and parts manufacturing. Fleet vehicles on fixed routes are best placed to make the EV switch early. Naamsa's rollout promises fewer broken plugs and more reliable charging infrastructure. Your local petrol station might get some charging hubs soon – if the owner can afford the upgrade. Who can afford the future? For all the infrastructure plans and policy ambitions, the fact remains that most South Africans can't afford an EV. 'These fully battery electric vehicles are still sitting at over R900,000 per unit,' Singh said. 'Our chief economist tells us that for quarter one 2025, 74% of new cars that were sold were under R500,000 in value. So South Africans have an affordability challenge.' Another common concern among potential EV buyers is the fear of getting stranded, even though most EVs offer a range of more than 200km a day, Singh said. More pressing is the resale value. With so few EVs changing hands locally, buyers don't know what their cars will be worth in five years, she added. Where wheels keep turning If motorists aren't totally onboard, Singh said there's an opportunity for the logistics and transport sector to carry the torch. 'We think the bus and truck segment is very well suited to making this transition to battery electric vehicles, primarily because they run fixed routes and these vehicles live in a depot a lot of their life,' Singh said. Most depots already have backup power and fleet operators benefit from industrial electricity tariffs, she added. DM
