South Africa: SA Eyes 50 Percent Tariffs On Chinese and Indian Cars

28 January 2026
Scrolla (Johannesburg)
By Dylan Bettencourt
  • Chinese cars made up 53% of all vehicle imports in 2024, while Indian cars accounted for 22% of total imports.
  • Ayabonga Cawe from the International Trade Administration Commission told Cape Town lawmakers on Tuesday that South Africa can raise tariffs.

South Africa is thinking about hitting Chinese and Indian cars with tariffs as high as 50%.

The government wants to protect local car makers from cheap imports flooding the market.

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The Department of Trade, Industry and Competition is looking at ways to stop the flood of foreign vehicles.

One option is to change South Africa's tariff schedule to match World Trade Organisation rules for most-favoured nations.

Ayabonga Cawe is the commissioner of the International Trade Administration Commission. He told lawmakers in Cape Town on Tuesday that the country has room to increase tariffs.

"For completely built-up passenger vehicles, the bound rates there are at 50%, our duties at the moment are at around 25%," Cawe said.

He said there is room to increase duties on car components by between 10% and 12%.

China, India and South Africa are all part of Brics, a group of developing nations.

But Chinese and Indian cars now dominate South Africa's imports.

Chinese cars made up 53% of all vehicle imports in 2024. Indian cars accounted for 22%.

Vehicle shipments from China have jumped by 368% in the past four years. Indian imports are up 135%.

The competition hits hardest in the entry-level market, where cheaper imports squeeze local producers.

The trade department will likely talk to the National Treasury about tax measures. These could include excise duty on new luxury cars.

The local industry faces other problems too.

Last year, the US put a 30% tariff on South African exports. This is the highest in sub-Saharan Africa.

"The US is South Africa's third-largest automotive export destination, with R28.7-billion in exports recorded in 2024," said Mkhululi Mlota, chief director of automotives at the department.

He said new US tariffs and uncertainty about the African Growth and Opportunity Act threaten SA's export position.

"These risks extend across the value chain, from component manufacturers to original equipment manufacturers' export programmes," Mlota said.

Read the original article on Scrolla.

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