Will Suzuki build cars in SA? Minister Tau engaging with carmakers as tariff debate rages
According to Lightstone, around 37% of the vehicles that South Africans purchase are locally produced, while a significant 36% are imported from India and 11% from China.
At a media event outlining South Africa's response to Donald Trump's tariffs, held in Pretoria on Tuesday, Minister of Trade and Industry, Parks Tau, revealed some interesting insights into the country's plan for the automotive industry.
Asked whether the government was considering raising the import tariffs on Indian and Chinese vehicles in order to prevent our market from being flooded, Tau did not rule out such a move but said the Department of Trade, Industry and Commerce (DTIC) was not in favour of punitive measures.
'With regards to Chinese and Indian auto, it is a discussion that we're currently having with the intention of taking a less punitive approach, but rather taking a more proactive approach of getting some of those products manufactured in the country.'
Tau said many Chinese manufacturers had expressed interest in establishing themselves in the country and were making contributions towards a revised Automotive Production and Development Program (APDP), which is currently under review.
Tau said he could not comment on what the actual decision would be, regarding tariffs, but added that it was the government's intention to accelerate the policy development process and related instruments in the implementation of the APDP.
Discussions with Suzuki Auto
Earlier this year Naamsa CEO Mikel Mabasa revealed that at least three Chinese car manufacturers were considering setting up vehicle production facilities in South Africa.
Interestingly, the DTIC has also been engaging with Suzuki Auto, which recently became the country's second best-selling brand, thanks largely to an affordable product portfolio sourced almost entirely from its Maruti Suzuki division in India.
'I should say that we spoke about the Chinese, but in the next two weeks, we'll also be engaging with both Japan and India. You would know that Suzuki has a great presence in the country right now, and we will be visiting.
'So whilst it's a Japanese company, they're exporting from India to the South African market. So we'll be touching (base with) both the parent company and the company that's exporting into the South African market to see how we can cooperate and collaborate, on the basis of seeking to attract them as an investor into our country.
'So we're not holding the stick as a starting point. We start with the carrot and then balance it with the stick," Tau concluded.
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