SA automakers put more pressure on government to address imports

South African automotive manufacturers are putting increasing pressure on the government to create a level playing field between domestic original equipment manufacturers (OEMs) and importers. Volkswagen Group Africa (VWGA) and Ford Motor Company of Southern Africa have both reaffirmed their commitment to South Africa, calling for fair competition and a level playing field for the domestic market.

Toyota South Africa Motors, in July, expressed similar sentiments, citing an R10.4 billion investment in the country for the new Hilux model.

The surge in affordable Chinese vehicle sales has put pressure on local and European brands, with Chinese brands accounting for over 19% of new passenger and light commercial vehicle sales in the first quarter of 2026. In response, the International Trade Administration Commission of South Africa recently signed a renewed record of understanding (RoU) on trade remedy cooperation with China’s Ministry of Commerce.

This agreement establishes a strengthened framework for cooperation on anti-dumping, countervailing, and safeguard measures.

Volkswagen brand CEO Thomas Schäfer and VWGA chair and MD Martina Biene emphasized the severe challenges facing Volkswagen and the South African automotive industry. They called for decisive policy action and greater responsiveness to their concerns, stating that such government interventions are critical for the long-term sustainability and competitiveness of both Volkswagen and the automotive sector as a whole.

Schäfer urged the government to renew its partnership with industry, highlighting that great industries are built by companies and governments working together. Ford's president, Neale Hill, also stressed the need for a level playing field, emphasizing the company's commitment to industrialization as a driver of shared value.