SA's automotive industry braces for potential US export tariffs

South African made vehicles and components are exported to 155 international markets.

- SIPHELELE DLUDLA

SOUTH Africa’s automotive industry has expressed anxiety about the potential impact of the impending export tariffs from the United States after vehicle exports rose by 7.9% in June, despite the growing toll of geopolitical and trade-related disruptions.

The Automobile Business Council (Naamsa) on Tuesday said vehicle exports increased by 2 647 units year-on-year to 36 343 units exported in June from the 33 696 units exported during the same month last year.

The automotive industry contributes 5.2% to South Africa’s gross domestic product (GDP), 3.2% in manufacturing and 2.01% retail.

In 2024, the export of vehicles and automotive components reached a record amount of R268.8 billion, equating to 14.7% of South Africa's total exports.

Vehicles and components are exported to 155 international markets.

However, Naamsa noted with anxiety that trade-related uncertainty looms large as the 90-day reciprocal trade reprieve extended by the US is scheduled to expire next week.

Naamsa CEO Mikel Mabasa said that while the reprieve did not explicitly apply to Section 232 tariffs on automotive products, it formed part of the broader negotiation framework that will be critical in determining South Africa's continued preferential access to the US market.

As such, Mabasa said ongoing engagement and negotiation over automotive exports will be vital to protect the sector’s long-term trade position and export earnings.