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IOL News
5 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.
The Citizen
25-04-2025
- Automotive
- The Citizen
Mercedes Vito Select, the versatile executive transport champion
Mercedes-Benz SA is proud to unveil the Vito Select, expanding its passenger car network with a versatile and stylish van. Catering to families, sports enthusiasts, and those needing extra space, the Select combines premium safety, quality, and the distinctive Mercedes-Benz style. Beate Mey, marketing manager for Mercedes-Benz Vans SA, highlights the significance of the launch, 'The Select marks a key milestone, offering private SA customers a versatile alternative alongside our luxurious V-Class. While the V-Class remains the ultimate in premium vans, the Select prioritises adaptability and leisure, delivering a dynamic yet refined experience at an attractive price point for the SA market.' The Vito Select boasts a modern aesthetic with a striking front design and a contemporary cockpit, complemented by a comprehensive suite of advanced safety and driver assistance features, appealing to discerning SA buyers. It is available in two distinct variants tailored for the SA market. Priced from approximately R1 264 200 (excluding VAT), this variant offers seating for up to five passengers while providing a generous 4.1 cubic metres of load space. Ideal for SA sports enthusiasts and adventurers needing ample room for equipment like bicycles, camping gear, and luggage. Starting at approximately R1 360 000 (excluding VAT), the Tourer accommodates up to eight passengers with substantial luggage space. Perfect for larger SA families, social gatherings, or premium shuttle services. Flexible seating allows the first row to swivel, creating a lounge-like rear, and the back row is removable for increased luggage capacity with five occupants. A key selling point for the SA market is the Select's impressive standard equipment. The redesigned instrument panel features the intuitive MBUX multimedia system with a 10.25-inch touchscreen and a 5.5-inch TFT display, along with seamless Apple CarPlay and Android Auto connectivity. The cockpit also includes wireless smartphone charging, a heated multi-function steering wheel, and electric seat controls with memory function, which are all highly desirable features for SA drivers. Comfortable and practical faux black leather upholstery is standard on all seats. For added convenience, an electric tailgate and electric sliding doors ensure effortless access, particularly useful in busy SA environments. Under the bonnet, the Select features a refined engine paired with the smooth and efficient 9G-TRONIC automatic transmission, a preferred choice for SA driving conditions. With ample power and torque, the Select delivers confident performance despite its size. Safety is paramount, with standard features including active lane keeping assist, attention assist, blind spot assist, cruise control, and an anti-theft protection package, providing peace of mind on SA roads. The Mercedes-Benz emergency call system offers crucial assistance in emergencies. The parking package with a reversing camera simplifies parking and manoeuvring, especially in tight urban spaces. Natasha Jardim, managing executive of Mercedes-Benz Vans SA, concludes: 'The Vito Select underscores our commitment to providing dynamic, high-quality vehicles that cater to diverse SA lifestyles. We are confident that its blend of functionality, style, and versatility will set a new benchmark in its class, appealing strongly to families and businesses across SA.' Source: MotorPress
