SA's vehicle exports face challenges despite domestic sales surging to near 6-year high

VEHICLE export volumes in South Africa are anticipated to come under increased pressure in the near term as the sector continues to adjust to higher tariff barriers to the United States market in spite of rising by 6.2% in August.

- SIPHELELE DLUDLA

The Automotive Business Council (Naamsa) on Monday said exports would also be pressured by the adjustment to the knock-on implications of the tariffs resulting in increasing global competition in other traditional export markets. This comes as the 30% tariffs imposed by the Trump administration on South African exports kicked in during the month of August, leaving the automotive and agricultural industries as the hardest hit.

Vehicle exports to the US dropped by 73% in the first quarter of 2025, followed by a further decline of 80% and 85% in April and May, respectively.

However, data from Naamsa on Monday showed that vehicle export volumes increased by 2 190 units year-on-year, from the 35 310 units exported in August 2024 to 37 500 units exported in August 2025.

For the year to date, vehicle exports were still 3.0% ahead of the same period 2024.

“The industry's ongoing focus will remain to navigate potential re-routing and further market diversification strategies,” Naamsa said.

Domestically, Naamsa said August's new vehicle sales performance reaffirmed that domestic demand continues to do the heavy lifting for South Africa’s automotive sector following an 18.7% increase, even as export channels confront heightened policy headwinds.