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Honorary Master
Will Suzuki build cars in SA? Minister Tau engaging with carmakers as tariff debate rages
Donald Trump’s automotive tariffs, while only affecting the Mercedes-Benz operations in South Africa, have sparked conversations on whether the government is sufficiently protecting own market.
According to Lightstone, around 37% of the vehicles that South Africans purchase are locally produced, while a significant 36% are imported from India and 11% from China.
At a media event outlining South Africa's response to Donald Trump's tariffs, held in Pretoria on Tuesday, Minister of Trade and Industry, Parks Tau, revealed some interesting insights into the country's plan for the automotive industry.
Asked whether the government was considering raising the import tariffs on Indian and Chinese vehicles in order to prevent our market from being flooded, Tau did not rule out such a move but said the Department of Trade, Industry and Commerce (DTIC) was not in favour of punitive measures.
“With regards to Chinese and Indian auto, it is a discussion that we’re currently having with the intention of taking a less punitive approach, but rather taking a more proactive approach of getting some of those products manufactured in the country.”
Tau said many Chinese manufacturers had expressed interest in establishing themselves in the country and were making contributions towards a revised Automotive Production and Development Program (APDP), which is currently under review.
Tau said he could not comment on what the actual decision would be, regarding tariffs, but added that it was the government’s intention to accelerate the policy development process and related instruments in the implementation of the APDP.
Donald Trump’s automotive tariffs, while only affecting the Mercedes-Benz operations in South Africa, have sparked conversations on whether the government is sufficiently protecting own market.
According to Lightstone, around 37% of the vehicles that South Africans purchase are locally produced, while a significant 36% are imported from India and 11% from China.
At a media event outlining South Africa's response to Donald Trump's tariffs, held in Pretoria on Tuesday, Minister of Trade and Industry, Parks Tau, revealed some interesting insights into the country's plan for the automotive industry.
Asked whether the government was considering raising the import tariffs on Indian and Chinese vehicles in order to prevent our market from being flooded, Tau did not rule out such a move but said the Department of Trade, Industry and Commerce (DTIC) was not in favour of punitive measures.
“With regards to Chinese and Indian auto, it is a discussion that we’re currently having with the intention of taking a less punitive approach, but rather taking a more proactive approach of getting some of those products manufactured in the country.”
Tau said many Chinese manufacturers had expressed interest in establishing themselves in the country and were making contributions towards a revised Automotive Production and Development Program (APDP), which is currently under review.
Tau said he could not comment on what the actual decision would be, regarding tariffs, but added that it was the government’s intention to accelerate the policy development process and related instruments in the implementation of the APDP.