New vehicle sales surge highest since pre-COVID, exports plunge on looming tariffs

THE South African automotive industry in July delivered its highest new vehicle sales in nearly six years on the back of improving consumer confidence, favourable credit conditions, and a steady recovery in disposable incomes.

- SIPHELELE DLUDLA

This comes as export volumes for July 2025 eased by 677 units, or 1.9%, from the 36 056 units exported in July 2024 to 35 379 units exported in July 2025.

The sector is also absorbing confirmation of the reimposition of a 30% tariff on general South African exports to the United States, set to take effect from 07 August, following the initial implementation of the 25% Section 232 tariffs on automotive products in April.

The Automotive Business Council (Naamsa) on Friday said though vehicle exports have displayed notable resilience despite the effects of the US 25% automotive tariffs, this latest development on tariffs cements a competitiveness blow, and a relative loss of competitiveness as peer countries retain or negotiate lower rates.

Naamsa CEO Mikel Mabasa said vehicle exports to the US - South Afri-cas second-largest trading partner and historically a key destination for domestically manufactured premium models - have plummeted by 82.2% in the first half of the year compared to the first half of 2024, dealing a significant blow to production volumes and supplier networks.

“The reimposition of these tariffs is deeply disappointing and has far-reach-ing implications. Without urgent trade remedy, the socioeconomic fallout could be severe,” said Mabasa.