Latest news with #APDP
The Star
2 days ago
- Automotive
- The Star
Will Suzuki build cars in SA? Minister Tau engaging with carmakers as tariff debate rages
Donald Trump's automotive tariffs, while only affecting the Mercedes-Benz operations in South Africa, have sparked conversations on whether the government is sufficiently protecting own market. 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. IOL has approached Suzuki Auto for commentary and will update the story in due course. It's not just Suzuki that imports vehicles from India. Many of the smaller Toyotas, such as the Suzuki-built Starlet, Vitz, Rumion, and Urban Cruiser, are also sourced from there, as are other high-volume products from Korean brands, most notably the Hyundai Grand i10 and Kia Sonet. Tata is also set to re-enter the South African market later this month. While Chinese imports accounted for just 11% of vehicle sales last year, this number is growing rapidly, and with a raft of new brands set to launch in the near future, including Lepas, iCaur, and the reintroduction of Geely, it would appear that our market is in real danger of being saturated. Consider that the country already has 16 Chinese brands, with Chery and GWM/Haval now fixtures in the top 10 sales list. Can our market realistically accommodate so many brands? Brandon Cohen, Chairperson of the National Automobile Dealer's Association (NADA), commented that South Africa is a relatively small market that already has one of the largest offerings of brands and derivatives locally. This benefits the buyer as it provides fierce competition. However, when it comes to the long-term sustainability of such a prolific brand count, Cohen feels the market will achieve a balance in the not-too-distant future. 'With consumers under extreme financial strain and new offerings that cater for high specification at competitive pricing, it is natural that those entities who cannot compete will suffer,' Cohen told IOL. 'I do, however, think that with certain brands remaining highly aspirational and product life cycles bringing new and exciting cars to market on a regular basis, we may see some brands recover while others could certainly fall away.' Ultimately, their feasibility will depend on economic growth. 'Unfortunately, the market is only so big and is completely dependent on the growth of the economy and jobs. At present, we are still not selling the number of vehicles we were doing before COVID, and without growth, the share of sales will need to keep dividing amongst the brands on offer,' Cohen added. 'If we can get the economy to grow meaningfully, I think more brands will see a brighter future.' IOL Motoring
IOL News
2 days ago
- Automotive
- IOL News
Motor manufacturers under threat: SA mulls incentive revisions, but are tariffs the answer?
File picture: Mercedes-Benz SA. Deindustrialisation remains a major threat to the South African vehicle manufacturing industry. Image: Supplied South Africa's automotive manufacturing industry is facing an existential crisis as affordable imports from India and China flood the market and export contracts come under threat. Although the imposition of US tariffs only affects Mercedes-Benz at present, this is expected to take a significant toll on that company, while elsewhere in the industry, a gradual deindustrialisation is eroding local output. While industry leaders such as Toyota SA CEO Andrew Kirby have previously sounded the warning bells about industrial decline, the Minister of Trade, Industry and Competition, Parks Tau, added to the chorus this week when he stated that the abovementioned pressures have resulted in 12 component company closures and over 4,000 job losses in the last two years. Speaking at an industry showcase held by the National Association of Automotive Component and Allied Manufacturers (Naacam) on Wednesday, Tau stated that local vehicle production, at 515,850 units in 2024, was far below the Automotive Masterplan 2035 target of 784,509. Equally worrying is that local content for vehicle production remains stagnant at 39%, well below the 64% target. Imports remain a threat, as just 37% of the vehicles that South Africans purchase are locally produced, according to Lightstone, while 36% are sourced from India and 11% from China. Minister Parks Tau said his department was currently reviewing the APDP incentive programme. Image: Supplied Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading 'Localisation is not merely policy compliance - it is existential. A 5% increase in local content would unlock R30 billion in new procurement, dwarfing the R4.4 billion US export market. To achieve this, we must act collectively to address some of the bottlenecks to growth,' Tau said. He revealed that the Department of Trade, Industry and Competition (DTIC) was reviewing the current Automotive Production Development Programme (APDP) as a comprehensive way of responding to the sector's challenges. Among these reforms would be shifting the duty credit incentive structure to place a greater emphasis on rewarding full manufacture, rather than just assembly. The government is also planning to incentivise electric vehicle (EV) and battery manufacturing. As announced earlier this year, carmakers will be able to claim a 150% tax deduction on investments related to EV production. The government is also considering adding locally mined minerals to the list of Items that qualify as local content under the APDP. In addition, a comprehensive skills gap analysis has been completed, resulting in EV-specific curricula and certification programmes now being developed in conjunction with numerous universities. The Minister said the government was also working hard to eliminate compliance burdens and reduce the red tape currently inhibiting investment into the auto sector. This includes a General Laws Amendment Bill that aims to fast-track high-impact investments and projects within 90 days. A call for punitive tariffs However, when it comes to protecting the local manufacturing industry from a flood of affordable imports, it appears the DTIC is not in favour of punitive measures such as tariffs. This is in spite of widespread calls for this, including from manufacturers such as BMW SA and industry organisations. Speaking at a separate event held on Tuesday, in response to Trump's tariff imposition, Tau said: '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.' 'So we're not holding the stick as a starting point. We start with the carrot and then balance it with the stick," Tau added.
IOL News
3 days ago
- Automotive
- IOL News
Will Suzuki build cars in SA? Minister Tau engaging with carmakers as tariff debate rages
Donald Trump's automotive tariffs, while only affecting the Mercedes-Benz operations in South Africa, have sparked conversations on whether the government is sufficiently protecting own market. 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.
IOL News
05-06-2025
- Automotive
- IOL News
Precious minerals shipped away: Why SA wants to incentivise local production of EV batteries
Government wants to see EV batteries produced in South Africa. Image: Newspress South Africa is considering expanding its vehicle production incentive programme to encourage the production of electric vehicle (EV) batteries in the country. This would see the ITAC trade commission adding certain locally mined minerals to the list of items that qualify as local content under the Automotive Production Development Programme (APDP), reported. This list could be expanded to include materials such as lithium, copper, graphite, cobalt sulfate, manganese sulfate and other rare earth minerals. South Africa is a significant producer of minerals such as manganese, nickel, cobalt, lithium and platinum. Building batteries in the country would help to maximise the value extracted from these precious minerals. The government is also said to be considering increasing the customs duties on EV batteries, in order to further encourage local production, Xagta added. However, this move could backfire if a manufacturer is interested in producing EVs in South Africa, but does not wish to use locally produced batteries. It could mean losing the entire vehicle production contract rather than just foregoing production of the battery components. The APDP operates through a system of rebates and refunds on specific customs duties, and is aimed at incentivising local production of vehicles. Following the publication of the Electric Vehicle White Paper in late 2023, South Africa has already taken concrete steps to incentivise the local production of electric vehicles. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ From March 2026, car companies will be able to claim a 150% tax deduction on investments related to EV production in South Africa. This includes new production equipment and factory upgrades made with the intention of producing EVs. The new incentive programme will run until March 2036. The South African automotive sector produces over 500,000 vehicles per year. While plug-in hybrid vehicles are produced for export by both BMW and Ford, no fully electric vehicles are currently produced locally. A move to full EV production could be critical to the survival of the local industry, given that the European Union, which is South Africa's main export destination, plans to ban the sale of new internal combustion engined vehicles from 2025. Some manufacturers, such as Volkswagen, are reluctant to invest in the local production of EVs unless there is a significant local demand for such vehicles. Although President Cyril Ramaphosa announced in late 2024 that EV purchase incentives will be introduced, no timelines or details have been released as yet. Currently, EVs attract a higher import duty than internal combustion vehicles, with rates of 25% compared to 18%. IOL
Al Jazeera
08-04-2025
- Politics
- Al Jazeera
Wave of Kashmir disappearances, mystery deaths spook tribal community
Kulgam, Indian-administered Kashmir — When Showkat Ahmad's body was found, it had sores and a bloodied eye. His hair was falling out, and the skin on the 18-year-old's hands and legs was peeling off, recalled his father, Mohamad Sadiq. That was March 16, three days after Sadiq had learned that his elder son, Riyaz, 25, had also died, a month after the two young men had disappeared. According to the official verdict of law enforcement officials, Showkat and Riyaz drowned in a canal in the Kulgam region of Indian-administered Kashmir, about 10km (6 miles) from their homes. Their postmortem reports point to potential suicide. But Sadiq — and many in the Gujjar tribal community the family belongs to — refuse to believe that narrative. Sadiq conceded that he is not sure who is responsible for the disappearance and death of his sons — whether it was security agencies or an armed group. Yet, whoever it was, Sadiq said he is convinced there was foul play involved. 'This wasn't an accident,' the 72-year-old father screamed, his voice cracking with anguish as he spoke to Al Jazeera outside his home, in an open grazing ground, where his relatives and family members had gathered to offer him support. 'They were tortured and killed.' Even as the government denies those accusations, the disbelief over its narrative captures the deep distrust of law enforcement officials in a region shaken by a spate of recent disappearances — with dead bodies turning up weeks later. Mukhtar Ahmad Awan, a 24-year-old man who also disappeared along with Riyaz and Showkat, has still not been found. That lack of belief in the government is accentuated by Kashmir's history. Since the start of an armed revolt against India in 1989, between 8,000 and 10,000 Kashmiris have disappeared, according to the Association of Parents of Disappeared Persons (APDP), a collective of relatives of victims of enforced disappearances in Kashmir. 'My sons were brutally murdered,' Sadiq insisted. In the quiet grazing grounds of Chandarkoot, about 68km (39 miles) from Srinagar, the biggest city in Kashmir, a hilly landscape covered with walnut and willow trees shelters flocks of sheep belonging to the local Gujjar community. On February 13, Riyaz, Showkat and Mukhtar left the nearby village of Qazigund to attend a wedding in the nearby Ashmuji area of Kulgam district. They never reached the venue. Sadiq tried calling his sons on their mobile phones at about 6:10pm, he said. But the phones were switched off. 'We desperately searched for them near the function venue, in Kulgam, and all the places we could think of,' he said. At 7pm, the family alerted the police. When the youths still had not returned by the next morning, they filed a complaint about them being missing with the police. For a month, police, the army and local rescue teams searched for them, but could not find anyone. Then, on March 13, Sadiq's phone rang. The searchers had found Riyaz's body in a canal. Three days later, Showkat's body also turned up in the same canal. Forensic expert Azia Manzoor Bhat, who examined Riyaz's body at District Hospital Kulgam during the postmortem, told reporters that the body was in an 'advanced stage of putrefaction'. His examination, Bhat said, suggested that Riyaz died of drowning and gave no indication of homicide — instead indicating possible death by suicide. Showkat too died of drowning, according to authorities. But protests have broken out over the deaths, which have ballooned into a political controversy. Sadiq and his family protested on the national highway that connects Srinagar, the summer capital of Jammu and Kashmir, to Jammu, the winter capital, demanding an inquiry. A video purportedly showing a police officer kicking a female protester on the national highway went viral. Meanwhile, in Jammu district, approximately 198km (123 miles) away from the site of the protest, police arrested student leaders from the Kashmiri Gujjar community as they protested against the Kulgam deaths. The police have announced an internal investigation into the accusations of an officer kicking a protester. In the Jammu and Kashmir Legislative Assembly, leaders from the governing National Conference and opposition parties, including the Congress, Peoples Democratic Party and People's Conference, demanded action against the police personnel involved in the kicking incident. There has been no official statement from Chief Minister Omar Abdullah on the kicking incident, nor on the disappearances and deaths. To Sadiq and others demanding an investigation, the deaths of Riyaz and Showkat, and Mukhtar's disappearance, follow an increasingly worrying pattern. In Kathua district, neighbouring Kulgam, two young men, Yogesh Singh, aged 32, and Darshan Singh, 40, and 15-year-old Varun Singh went missing on March 5 while returning from a wedding. Their bodies were recovered from a canal three days later. Days later, two other teenagers — Mohammad Din and Rehman Ali — went missing in Kathua. They are yet to be found almost a month later. They are Muslim, the three men who disappeared before them were Hindu — all bound by tragedy. But fear of the government and security forces runs particularly deep in the Gujjar community, following a series of killings and unnatural deaths in recent years. The community, along with an ethnic subgroup known as the Bakarwals, constitutes about 8 percent of the population of Jammu and Kashmir, according to India's last census in 2011, though some community representatives argue that their numbers are underrepresented because of their nomadic lifestyle. In 2020, an Indian army officer allegedly abducted and killed three young Gujjar men in Rajouri district. The police filed a chargesheet against the officer, accusing him of abducting and killing the three labourers in a staged encounter. A court martial held the officer guilty and recommended life imprisonment. But in November 2023, an Armed Forces Tribunal suspended the sentence and granted bail to the officer, while the case continues to be heard. Three years later, in December 2023, following an attack by armed fighters on army vehicles in Poonch district's Topa Pir village, security forces detained many locals for interrogation. Subsequent videos surfaced showing officers beating civilians and applying chilli powder to their wounds. Three Gujjar men — Mohammad Showkat (22), Safeer Hussain (45), and Shabir Ahmad (32) — died in custody, with their bodies displaying signs of severe torture. Then, starting in December 2024, 17 people from the community died under mysterious circumstances in a little over a month. The victims, including 13 minors, exhibited symptoms such as fever, vomiting, and abdominal pain before their deaths. Investigations ruled out viral or bacterial infections, with preliminary findings suggesting neurotoxins as the likely cause. Despite extensive testing, the exact toxin and its source remain unidentified, leaving the community in fear and seeking answers. In February 2025, a 25-year-old Gujjar man, Makhan Din, recorded a video explaining why he was about to kill himself — detailing alleged torture at the hands of security forces. Din, who died by suicide, was questioned over suspicious Pakistani contacts — and was not tortured — the police claimed. That is not a story many Kashmiri Gujjars believe. 'Our people disappear, and we are told to stay quiet,' said Abid Awan, an 18-year-old neighbour of Sadiq in Kulgam. 'We live in fear, knowing that our voices are ignored, and our suffering is dismissed. It feels like we don't exist to those in power.' Chandi Awan's frail hands trembled as the 80-year-old father of Mukhtar, the missing 24-year-old in Kulgam, clutched his walking stick. 'Mukhtar was the light of my eyes. Without him, my world has fallen into darkness,' Awan said, surrounded by grieving relatives, as he sat outside his house, approximately 12km (7.5 miles) from Sadiq's home. 'The pain is unbearable – it feels as though I am waiting for death.' Mohammad Jeelani Awan, Mukhtar's brother, said the government's explanation for the deaths of Showkat and Riyaz does not make sense. 'Their belongings, including cards, mobile phones, and cash, were dry. How is this possible?' he said. Every night, as he tries to sleep, all he sees is his brother's face, he said. 'The smile that once lit up our home, the dreams he had. It's hard to believe he's gone, taken from us in such an unforgiving way. I can't help but feel I failed him, that I couldn't protect him,' said Jeelani, letting out a scream. 'I wish there was a way to turn back time, to give him the life he deserved.' The families say they will continue to seek justice. 'We will not let this go, and demand a fair and independent probe,' said 65-year-old Ghulam Nabi, uncle of Showkat and Riyaz. Meanwhile, Riyaz's wife, Najma Begum, sat quietly in a corner of her one-storey house, her face pale, eyes swollen from the tears. In one hand she clutched a handkerchief, and in the other a photograph of her husband. Silent sobs shook her body as she stared at the photograph, then hugged her eight-year-old daughter. 'All we want is justice, nothing more, nothing less. If the law truly exists, we will get justice,' she cried. 'They have killed him. They have killed my Riyaz.'
