South Africa Proposes 50% Tariff Hike on Vehicles from China and India

[Trade Policy] South Africa plans to significantly raise import tariffs on vehicles manufactured in China and India to 50% to protect its domestic automotive industry.

Key Data: China and India Account for Over 70% of South Africa’s Vehicle Imports

Over the past four years, South Africa’s vehicle imports from China surged by 368%, while imports from India grew by 135%. In 2024, vehicles made in China represented 53% of South Africa’s total vehicle imports, and those from India accounted for 22%.

Strategic Rationale: Leveraging WTO Tariff Flexibility for Protection

Currently, South Africa’s import tariff on complete vehicles stands at approximately 25%, while its WTO-bound rate is 50%. The South African International Trade Administration Commission stated that the proposed adjustment aims to comply with Most-Favored-Nation (MFN) commitments, while tariffs on auto parts may be adjusted by country of origin to 10%–12%.

Industry Impact: Domestic Supply Chain Under Growing Pressure

South Africa’s annual vehicle production has remained below 600,000 units for several consecutive years, and the local content ratio in vehicle manufacturing has declined by an average of 1.1% per year. Over the past three years, more than ten auto parts factories have shut down. The policy may also be extended to include luxury vehicles through additional consumption taxes.