Automotive industry embraces carbon transition amid looming CBAM tariffs

THE National Association of Automotive Component and Allied Manufacturers (NAACAM) 2025 show served as a pivotal platform for discussing the pressing need for carbon transition within the South African automotive industry.

- YOGASHEN PILLAY

With key players from across the sector present, the dialogue was not only timely but also crucial, as it addressed the impending challenges of decarbonisation and the future of manufacturing in a world increasingly focused on sustainability.

Amith Singh, national manager for manufacturing at Nedbank Commercial Banking, said it was comforting to know that the industry has the ability to navigate the carbon transition.

“It’s not a case of we don't have the ability. We've got the abilities to do so, which, which we do take a lot of comfort in. I think the challenge is creating a sense of urgency and building and developing a strong enough why,’ he said. Singh further highlighted the impact of the EU Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026, which will impose tariffs on carbon-intensive products. He emphasised the significance of understanding carbon emissions.