South Africa’s government will release a set of measures by the end of February aimed at revitalizing local vehicle production, which has fallen behind regional competitors amid rising imports and global market shifts. The announcement was reported by Reuters, citing government officials overseeing the automotive sector.
The planned automotive policy review is expected to include revisions to the ad valorem (luxury) tax and a reassessment of tariffs on imported vehicles, designed to encourage domestic assembly and manufacturing. TimesLive noted that the National Treasury is involved in consultations to ensure measures support local manufacturers effectively.
South Africa lost its long-held position as Africa’s largest vehicle producer to Morocco in 2025, with output reaching around 602,302 units, well below the 1.4 million units targeted under the 2018 Automotive Masterplan. Imported vehicles accounted for the majority of sales, highlighting the need to strengthen local content and production, as reported by Reuters.
Deputy Minister Zuko Godlimpi said the review seeks to “turn the tide on localization,” with proposals from industry and other stakeholders expected to be finalized soon. Government officials also confirmed ongoing discussions with global and regional automakers to expand manufacturing capacity and create jobs, according to Reuters.
