The SA Vehicle Industry Thread

Chinese automaker BAIC plans expansion of Eastern Cape assembly facility amid US tariff pressures

Chinese carmaker BAIC is planning to expand its vehicle assembly facility in Gqeberha, Eastern Cape, according to the Chinese Ambassador to South Africa, Wu Peng.

BAIC South Africa was established in 2016 as a joint venture between Beijing-based BAIC Group and the Industrial Development Corporation (IDC). Under the agreement, BAIC holds a 65% stake, with the IDC owning the remaining 35%.

Located within the Coega Special Economic Zone, the assembly plant was initially hailed as one of the most significant investments in South Africa’s automotive sector.

The facility includes a vehicle assembly line, press shop, paint shop, body shop, administrative offices, and a neighbouring supplier park that houses small and medium-sized local component manufacturers to support production.

 
Concerns over job security in South Africa's automotive sector as Volvo reduces dealerships

The Motor Industry Staff Association (MISA) has raised concerns about job security in South Africa’s automotive sector amid economic pressures and dealership closures.

This follows reports that Volvo Cars South Africa will reduce its dealership network from 19 to just seven nationwide, sparking fears of potential job losses and broader instability within the industry.

The move comes after Volvo previously announced a strategic “review” of its local dealership network, aimed at aligning operations with shifting market demands and the brand’s evolving global direction.

However, MISA's media manager, Sonja Carstens, has accused the company of failing to consult with unions regarding the restructuring process and the potential job losses that could result.

Carstens further revealed that employees have been informed they will now be working for other brands.

 
Trump’s tariffs an unmanageable risk for SA carmakers

For decades, South Africa has benefited enormously from German luxury car brands’ assembly plants. BMW’s Rosslyn and Mercedes-Benz’s East London facilities produce high-margin luxury cars for American buyers. It’s been a terrific business – until now.

From the early 2000s, an American preference for BMW 3 Series and Mercedes-Benz C-Class sedans drove enormous profits for BMW and Mercedes-Benz’s South African operations. It was an excellent example of the benefits of globalisation: South African build costs and American retail price profits.

BMW and Mercedes-Benz also applied German labour environment standards, which meant working in the Rosslyn and East London facilities provided access to notable benefits and upskilling opportunities.

America is a high-value market

There’s a lot of noise and panic in naamsa | The Automotive Business Council and Government circles about what American tariffs could do to the South African car industry. Tariff math is simple, but its meaning is a bit more complicated…

America accounts for a very small percentage of South African-built vehicle exports. Last year, it was only 6.5%. But it’s value that matters, not volume. South Africa exports expensive luxury cars to North America – as opposed to, say, budget hatchbacks – which means the per-unit effect is huge. Last year, the total value of South African-built BMW and Mercedes-Benz products for American customers, plus South African automotive components, totalled R35 billion. Vehicles alone were 25 553 units.

South African BMW X3 and Mercedes-Benz C-Class builds will trigger the new 25% tariff on all imported vehicles, eroding their price-competitive sourcing. It’s a minor trade and industrial policy tragedy, as South African-made German luxury cars have developed to an excellent assembly standard, pleasing even the most demanding of American customers.

Africa’s luxury automotive leader

For BMW and Mercedes-Benz, it’s an abundantly complex scenario. Rosslyn and East London are some of the oldest German luxury car assembly facilities outside of Europe, and have no rivals in Africa.

Other African automotive zones, such as Morocco and Egypt, don’t have the supply chain to support ultra-luxury builds like X3 or C-Class. Morocco makes more vehicles, but mostly budget Renault and Dacia hatches. In X3 and C-Class, Mzansi builds much higher sophistication and -spec cars for export.

Automotive jobs are among the best manufacturing employment opportunities in South Africa. In the Eastern Cape, especially East London, the economy is hugely dependent on Mercedes-Benz. And, not just for primary manufacturing wage employment and skills development, but also the localised supply chain that Government regulations have developed.

 
FiestaST said:
Trump’s tariffs an unmanageable risk for SA carmakers

For decades, South Africa has benefited enormously from German luxury car brands’ assembly plants. BMW’s Rosslyn and Mercedes-Benz’s East London facilities produce high-margin luxury cars for American buyers. It’s been a terrific business – until now.

From the early 2000s, an American preference for BMW 3 Series and Mercedes-Benz C-Class sedans drove enormous profits for BMW and Mercedes-Benz’s South African operations. It was an excellent example of the benefits of globalisation: South African build costs and American retail price profits.

BMW and Mercedes-Benz also applied German labour environment standards, which meant working in the Rosslyn and East London facilities provided access to notable benefits and upskilling opportunities.

America is a high-value market

There’s a lot of noise and panic in naamsa | The Automotive Business Council and Government circles about what American tariffs could do to the South African car industry. Tariff math is simple, but its meaning is a bit more complicated…

America accounts for a very small percentage of South African-built vehicle exports. Last year, it was only 6.5%. But it’s value that matters, not volume. South Africa exports expensive luxury cars to North America – as opposed to, say, budget hatchbacks – which means the per-unit effect is huge. Last year, the total value of South African-built BMW and Mercedes-Benz products for American customers, plus South African automotive components, totalled R35 billion. Vehicles alone were 25 553 units.

South African BMW X3 and Mercedes-Benz C-Class builds will trigger the new 25% tariff on all imported vehicles, eroding their price-competitive sourcing. It’s a minor trade and industrial policy tragedy, as South African-made German luxury cars have developed to an excellent assembly standard, pleasing even the most demanding of American customers.

Africa’s luxury automotive leader

For BMW and Mercedes-Benz, it’s an abundantly complex scenario. Rosslyn and East London are some of the oldest German luxury car assembly facilities outside of Europe, and have no rivals in Africa.

Other African automotive zones, such as Morocco and Egypt, don’t have the supply chain to support ultra-luxury builds like X3 or C-Class. Morocco makes more vehicles, but mostly budget Renault and Dacia hatches. In X3 and C-Class, Mzansi builds much higher sophistication and -spec cars for export.

Automotive jobs are among the best manufacturing employment opportunities in South Africa. In the Eastern Cape, especially East London, the economy is hugely dependent on Mercedes-Benz. And, not just for primary manufacturing wage employment and skills development, but also the localised supply chain that Government regulations have developed.

Click to expand...

I'm so over these doom and gloom articles... so what... America isnt the only market out there.

China is waiting in the wings for us to build their cars and they have enough market share for us to fill.

Buyers are talking with their feet anyway... German brands are down 60% in sales since 2019 IIRC... so... theres coffee thats not being smelt here

Cyril must just tell orange man to eff off... and so too the europeans. they've exploited us for long enough and its time that we start playing by our own rules.

SA has a population hungry for work... let the work come... and stop letting uncle Sam dictate who our friends should be... if its good for the ppl of SA then we should do it. The US only looks out for itself... about time we do the same
 
South Africa urged to broaden its global trading base as US tariffs loom

With South Africa looking likely to lose its duty-free access to the US market, amid Donald Trump’s controversial trade war and a souring of diplomatic relations, South Africa is being forced to rethink its current trade agreements.

At present, the Africa Growth and Opportunity Act (AGOA) gives South African producers duty-free access to the US market for certain goods, which has provided major benefits to industries such as agriculture, mining and vehicle manufacturing.

However, recent diplomatic tensions with the US mean these AGOA preferences are in peril.

South Africa also enjoys duty-free access to the European Union (EU), its top export destination for vehicles. But with the EU planning to ban the sale of new internal combustion-engined vehicles from 2035, South Africa will lose major export contracts if it does not shift towards electric vehicle (EV) production.

Sipho Mhaga, Customs and Excise Specialist at SNG Grant Thorton, said South Africa needs to look closer to home and examine its own trade agreements in order to capitalise on emerging opportunities and mitigate potential risks.

Although the African Continental Free Trade Area (AfCFTA) and the Southern African Customs Union (SACU) do present such opportunities, inadequate infrastructure, regulatory disparities and non-tariff barriers still hinder growth.

“To leverage AfCFTA fully, South Africa - and indeed all other African countries - must invest in logistics and border efficiency,” Mhaga said.

 
Renault climbs, Nissan tumbles: SA’s new-vehicle sales in April 2025

April 2025 was the SA new-vehicle market’s 7th consecutive month of year-on-year growth. Here’s your industry overview, including a look at Mzansi’s best-selling automakers…

In April 2025, South Africa’s new-vehicle market registered its 7th straight month of year-on-year growth, with local sales increasing 11.9% to 42 401 units. Interestingly, this performance represented a 14.3% fall compared to March 2025’s (admittedly 2-year best) showing.

Naamsa said the nation’s automotive sector “continued to show determined resilience” against a “backdrop of escalating global economic uncertainty”. The organisation furthermore noted that April 2025 contained fewer selling days than the same month in 2024, while also pointing to a “brief return of load-shedding” and “political uncertainty because of the VAT saga” as local headwinds.

New-vehicle sales summary for April 2025

- Aggregate new-vehicle sales of 42 401 units increased by 11.9% (4 502 units) compared to April 2024.
- New passenger-vehicle sales of 30 101 units increased by 16.9% (4 350 units) compared to April 2024.
- New light-commercial vehicle sales of 9 961 units increased by 3.2% (307 units) compared to April 2024.
- Export sales of 31 822 units decreased by 6.6% (2 266 units) compared to April 2024.

10 best-selling automakers in SA in April 2025

1. Toyota – 10 363 units

2. Suzuki – 5 977 units

3. Volkswagen Group – 3 973 units

4. Hyundai – 3 007 units

5. Ford – 2 398 units

6. GWM – 1 943 units

7. Chery – 1 852 units

8. Isuzu – 1 383 units

9. Renault – 1 281 units

10. Mahindra – 1 278 units

 
P-Series cracks top 5! SA’s best-selling bakkies in April 2025

The GWM P-Series broke into the top 5 on the list of SA’s best-selling bakkies for April 2025, while the Peugeot Landtrek returned to the top 10…

In April 2025, South Africa’s total new-vehicle market increased 11.9% year on year to 42 401 units. After a lengthy stagnant period, sales in the light-commercial vehicle (LCV) space finally grew year on year, improving 3.2% to 9 961 units last month.

So, what happened on the list of Mzansi’s best- and worst-selling bakkies in April 2025? Well, though sales of the Toyota Hilux fell 4.9% month on month to 2 780 units, the Prospecton-produced stalwart remained the nation’s most popular bakkie by quite some margin. Some 7.9% (or 221 units) of that total represented sales to the rental industry.

After having to settle for 3rd place in March, the Ford Ranger wrestled back 2nd spot in April 2025, despite registrations of the Silverton-made contender sliding 20.7% to 1 728 units. That meant the Struandale-built Isuzu D-Max slipped a spot to 3rd, suffering a hefty 50.8% month-on-month decline to end on 1 108 units.

The KwaZulu-Natal-assembled Mahindra Pik Up also experienced a marked month-on-month drop in sales, finishing April on 654 units (down 46.2%) but nevertheless retained 4th position. The Chinese-built GWM P-Series – a range that includes the P300 and P500 – climbed 2 rankings to finish 5th, reaching 497 units (up 23.6% compared to March). Interestingly, 43.7% (or 217 units) of those registrations represented sales to government.

10 best-selling bakkies in South Africa for April 2025

1. Toyota Hilux – 2 780 units

2. Ford Ranger – 1 728 units

3. Isuzu D-Max – 1 108 units

4. Mahindra Pik Up – 654 units

5. GWM P-Series – 497 units

6. Toyota Land Cruiser 79 – 417 units

7. Nissan Navara – 293 units

8. Volkswagen Amarok – 254 units

9. Foton Tunland G7 – 212 units

10. Peugeot Landtrek – 100 units

 
Suzuki Swift leads SA car market again in April as buyers shift to more affordable models

Despite a whirlwind of uncertainty collectively spun by US President Donald Trump’s trade war, and South Africa’s 2025 Budget impasse, the local new vehicle market showed remarkable resilience in April.

According to Naamsa, new vehicle sales totalled 42,401 units, an increase of 11.9%, versus the 37,899 units sold in April 2024. This was in spite of fewer selling days, owing to the configuration of public holidays this year. This followed a strong performance in March, which was the industry's best sales month in two years.

As has become the norm, passenger vehicle sales led the growth curve, increasing by 16.9% to 30,101 units last month, while light commercial vehicles grew by 3.2% to a total of 9,654.

Medium commercial vehicles, at 629 units, grew by 10.2%, while the heavies decreased by 11.1% to 1,710 units.

The Suzuki Swift enjoyed a stellar sales month, surging past the 2,000 mark once again to dominate the passenger car market, ahead of the Toyota Corolla Cross (1,584) and Hyundai Grand i10 (1,425).

With Volkswagen SA having temporarily shut its Kariega plant to tool up for its new compact SUV, which you can check out over here, the Polo Vivo, a regular front runner, fell to fourth place, at 1,366 units.

South Africa’s 50 Best-Selling Vehicles: April 2025

Toyota Hilux - 2,780
Suzuki Swift - 2,053
Ford Ranger - 1,728
Toyota Corolla Cross - 1,584
Hyundai Grand i10 - 1,425
Volkswagen Polo Vivo - 1,366
Suzuki Fronx - 1,186
Chery Tiggo 4 Pro - 1,133
Isuzu D-Max - 1,108
Haval Jolion - 973
Toyota Starlet - 905
Toyota Starlet Cross - 834
Kia Sonet - 812
Suzuki Ertiga - 778
Volkswagen Polo - 768
Mahindra Scorpio Pik-Up - 654
Toyota Fortuner - 606
Omoda C5 - 588
Toyota Hi-Ace - 571
Toyota Urban Cruiser - 539
Mahindra XUV 3XO - 515
GWM P-Series - 497
Renault Kiger - 470
Nissan Magnite - 449
Toyota Rumion - 448
Toyota Vitz - 433
Chery Tiggo 7 Pro - 427
Suzuki Baleno - 420
Toyota Land Cruiser PU - 417
Hyundai Exter - 381
Volkswagen T-Cross - 362
Renault Triber - 357
Jetour Dashing - 334
Suzuki Jimny - 319
Suzuki S-Presso - 316
Ford Everest - 311
Renault Kwid - 300
Hyundai i20 - 295
Nissan Navara - 293
Hyundai Venue - 285
Ford Territory - 257
Toyota Land Cruiser Prado - 257
Volkswagen Amarok - 254
Haval H6 - 246
Jetour X70 Plus - 239
Suzuki Eeco - 233
Foton Tunland G7 - 212
Volkswagen Polo Sedan - 208
Volkswagen Tiguan - 207
Suzuki Celerio - 202

In the manufacturer's ranking, Suzuki surged to second place with an impressive 5,977 units, from Volkswagen’s 3,873 units, while Toyota led the way overall with sales of 10,363 vehicles.

Toyota - 10,363
Suzuki Auto - 5,977
Volkswagen - 3,973
Hyundai - 3,007
Ford - 2,398
GWM SA - 1,943
Chery Auto - 1,852
Isuzu - 1,383
Renault - 1,281
Mahindra - 1,278

 
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