South Africa mulls 50% tariffs on vehicles from India, China: Report
India and China have emerged as the two largest vehicle suppliers to South Africa, accounting for 53 per cent and 22 per cent of total vehicle imports in 2024, respectively.
- Jan 28, 2026,
- Updated Jan 28, 2026 1:37 PM IST
South Africa is reportedly evaluating the possibility of imposing tariffs of up to 50 per cent on vehicles imported from India and China. This measure is under review by the Department of Trade, Industry and Competition as the country seeks to address concerns over rising vehicle imports impacting local automotive manufacturing.
According to a report in Bloomberg, an internal review aimed to identify ways to stem the influx of vehicles from these key export markets, which policymakers argued are eroding domestic industry competitiveness. The Department is specifically examining amendments to the existing tariff schedule to bring import levies in line with World Trade Organization guidelines for most-favoured nations.
Ayabonga Cawe, commissioner of the International Trade Administration Commission, told lawmakers in Cape Town that for completely built-up passenger vehicles, the bound rates there are at 50 per cent.
He added, "On components, there is some room to manoeuvre — depending on what the origin market is — of between 10 per cent and 12 per cent." This suggests that parts and components may also be subject to revised duties depending on their origin.
India and China have emerged as the two largest vehicle suppliers to South Africa, accounting for 53 per cent and 22 per cent of total vehicle imports in 2024, respectively, according to recent data. This considerable market share has led to heightened scrutiny from South African industry stakeholders.
Imports from China surged by 368 per cent over the last four years, while imports from India rose by 135 per cent. The most pronounced competition has occurred in the entry-level segment, where lower-priced imports are challenging domestic manufacturers' margins.
As part of the review, the trade department is expected to consult with the National Treasury regarding other possible tax instruments. Measures under discussion include the introduction of excise duties on new luxury cars and changes to the current system of rebate credit certificates.
China, India, and South Africa, all members of the BRICS group of nations, have previously focused on fostering closer trade ties.
South Africa is reportedly evaluating the possibility of imposing tariffs of up to 50 per cent on vehicles imported from India and China. This measure is under review by the Department of Trade, Industry and Competition as the country seeks to address concerns over rising vehicle imports impacting local automotive manufacturing.
According to a report in Bloomberg, an internal review aimed to identify ways to stem the influx of vehicles from these key export markets, which policymakers argued are eroding domestic industry competitiveness. The Department is specifically examining amendments to the existing tariff schedule to bring import levies in line with World Trade Organization guidelines for most-favoured nations.
Ayabonga Cawe, commissioner of the International Trade Administration Commission, told lawmakers in Cape Town that for completely built-up passenger vehicles, the bound rates there are at 50 per cent.
He added, "On components, there is some room to manoeuvre — depending on what the origin market is — of between 10 per cent and 12 per cent." This suggests that parts and components may also be subject to revised duties depending on their origin.
India and China have emerged as the two largest vehicle suppliers to South Africa, accounting for 53 per cent and 22 per cent of total vehicle imports in 2024, respectively, according to recent data. This considerable market share has led to heightened scrutiny from South African industry stakeholders.
Imports from China surged by 368 per cent over the last four years, while imports from India rose by 135 per cent. The most pronounced competition has occurred in the entry-level segment, where lower-priced imports are challenging domestic manufacturers' margins.
As part of the review, the trade department is expected to consult with the National Treasury regarding other possible tax instruments. Measures under discussion include the introduction of excise duties on new luxury cars and changes to the current system of rebate credit certificates.
China, India, and South Africa, all members of the BRICS group of nations, have previously focused on fostering closer trade ties.