Maruti, Hyundai may bear brunt of South Africa’s tariff hike plan

Just a month after Mexico doubled tariffs on car imports, South Africa is considering the option, in a one-two punch that threatens Indian automobile exports of over $2 billion.

- Ayaan Kartik

The latest move, if it takes effect, will hurt India’s largest carmaker Maruti Suzuki India Ltd, and Hyundai Motor India Ltd—For Maruti, South Africa is the largest export market, while for Hyundai, it is among the top five. Maruti shares fell 2.39% on the BSE on Wednesday and Hyundai shares fell 0.61%, while the benchmark Sensex rose 0.60%.

South Africa's Department of Trade, Industry and Competition is reviewing its automobile industry policy, officials informed lawmakers on Tuesday. One of the measures is raising the 25% import duty on cars to 50%, the ceiling set by the World Trade Organization for passenger vehicle imports.

Commerce ministry data showed that Indian automakers exported $1.2 billion worth of passenger vehicles to South Africa in fiscal year 2025 (FY25), a growth of 26% from the previous year. Between April and November this year, exports have crossed $1 billion, an increase of 30%.