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Reuters
01-08-2025
- Business
- Reuters
South African rand recoups some losses after US jobs data, stocks fall on tariff concerns
JOHANNESBURG, August 1 (Reuters) - The South African rand gained against a softer dollar after the United States reported weaker-than-expected jobs data, but stocks on the local bourse fell sharply as traders mulled the impact of higher tariffs on the country after it failed to clinch a trade agreement with Washington. At 1604 GMT, the rand traded at 18.0350 against the dollar , about 1% firmer than its previous close and paring losses after dropping to an over two-month low in early trade. The dollar last traded more than 1% weaker against a basket of currencies. South Africa's rand, like other risk-sensitive currencies, often takes cues from global drivers such as U.S. policy and economic data. The Johannesburg Stock Exchange's Top-40 index (.JTOPI), opens new tab closed down 0.7% and the wider All-Share index (.JALSH), opens new tab dipped 0.8%. In an executive order on Thursday, U.S. President Donald Trump modified tariff rates for some countries, but South Africa's figure was kept at 30%, as he seeks to reshape global trade on more favourable terms for the United States. The order said the higher duty rates would take effect in seven days. A seasonally-adjusted purchasing managers' index earlier showed that South African manufacturing sentiment improved in July, pointing to better business conditions in the sector for the first time in nine months. Separately, data from the national auto association NAAMSA showed a 15.6% year-on-year increase in new vehicles sold domestically in July (ZAVEHY=ECI), opens new tab. South Africa's benchmark 2035 government bond was stronger, as the yield fell 3 basis points to 9.595%. The country's government borrowing costs dropped to their lowest in five years after the Reserve Bank said on Thursday it would lower its inflation goal, despite the finance minister not yet having signed off on a formal change of target.
Mail & Guardian
30-07-2025
- Automotive
- Mail & Guardian
Chinese car sales continue to rise in SA and their new-energy vehicles could be a game changer
Chery sold 2 101 new vehicles in June. Chinese car sales continue to rise in South Africa, with more brands looking to enter the market. Chery and GWM were the top selling Chinese manufacturers in June, with the former selling 2 101 new vehicles and the latter selling 2 288, according to data from the National Association of Automobile Manufacturers of South Africa. The two brands ranked sixth and seventh overall in new vehicle sales for the month, only falling behind legacy brands Toyota, Suzuki, Volkswagen Ford and Hyundai. Chery relaunched in South Africa in 2021 and GWM brought its SUV brand, Haval, in the same year. The success of these two paved the way for the likes of Omoda, Jaecoo and Jetour to also enter the country. Omoda and Jaecoo passed the 1 000 vehicle mark in June while Jetour sold 683 new vehicles and Baic sold 232. Many industry watchers believe the price point is the main reason Chinese vehicles are doing so well in South Africa. But Shannon Gahagan, the national brand and marketing manager at Omoda and Jaecoo South Africa, has attributed the success of these brands rather to what is being offered for the price. 'Price is a contributing factor; however, other brands offer vehicles in this price segment that haven't seen the same kind of growth,' Gahagan said. 'Chinese vehicles lie not only in pricing but also in what is offered for that price, such as technology, vehicle styling, and the brand.' Gahagan believes the rise of Chinese vehicles in South Africa has reshaped consumer perception in the country. 'Chinese OEMs [original equipment manufacturers] have shown that tech and innovation don't have to come with a steep price tag. South Africans are embracing the variety of choice and are open to receiving more 'bang for their buck,' which also comes with style and innovation,' she said. (Graphic: John McCann/M&G) Entering the new-energy market By the end of 2024, South Africa's new-energy vehicle (NEV) market was growing at a fast pace, but still not enough to have a meaningful effect on new car sales. Although the segment experienced a 100.6% year-on-year increase in 2024, it made up only 3% of the total new-vehicle market. Range anxiety — the shortage of charging infrastructure — and the price point of fully electric vehicles (EVs) have contributed to the slow growth of NEVs in South Africa. The alternative is plug-in hybrid electric vehicles (PHEV), which eliminates range anxiety because the vehicle works with both an electric motor and an engine. By the end of 2024, there were no plug-in hybrid vehicles selling for under a million rand but, since April, Chinese manufacturers have released a variety of PHEV into the South African market. BYD released the Sealion 6 in April and other brands followed suit. Omoda and Jaecoo released PHEV variants of the C9 and J7 in June, Chery released the PHEV variant of the Tiggo 7 Pro and Haval released the H6 GT in a PHEV as well. All of these models come in at under a million rand. Gahagan says it is important to allow people with different budgets to enjoy the advancements in the motoring industry. 'As the technology advances and becomes more widely accepted internationally, the pricing is adapting to suit a wider variety of customers. We're also striving to make these technologies more accessible and suitable for various budgets, allowing more customers to experience these advancements,' she told the Mail & Guardian . Chery recently released the Tiggo 7 CSH, a PHEV variant of the famous Tiggo 7 Pro. Trust in Chinese vehicles When Chinese brands entered the market in 2021, a major concern was their reliability. But strong warranties and service plans have shown they veconfidence in their products. Chery released a game changing 10-year or one million kilometre warranty on their engines for the first owner of the vehicle, while offering the usual four year/60 000km service plan and five-year/150 000km vehicle warranty. Omoda and Jaecoo have followed suit with the engine warranty on their vehicles. These manufacturers have now also placed the same amount of confidence in their PHEV vehicles by offering a 10-year/unlimited kilometre power battery pack warranty for the first owner of the vehicle. These strong warranties have helped contribute towards the success of Chinese vehicles in South Africa. In terms of parts, Omoda and Jaecoo have a 98.4% fill at their warehouse. 'We've focused on getting the fundamentals right. Reliable products, strong after-sales support, and local parts availability through our warehouse, ' Gahagan said. 'Our growing sales show that more South Africans are placing their trust in the brand, and as more of our vehicles enter the used market, resale values will start to reflect that confidence.' More models and brands to come to South Africa Chinese manufacturers have been busy in the South African market in 2025. BYD released three new vehicles in April, GWM have expanded their Tank range and P-Series range and also released the new H6 and H6 GT PHEV, Chery just recently updated its Tiggo 7 Pro range with a PHEV variant and its Tiggo Cross range with a hybrid variant and Omoda and Jaecoo also just expanded their range of vehicles. Omoda and Jaecoo are set to release the C7 and J5 later this year, while Chery is to bring its flagship Tiggo 9 PHEV. Chery will also bring a bakkie named Himla to South Africa in 2026. The iCAUR is coming to SA in 2026 Lepas is launching in 2026 A Chery Himla bakkie was revealed in 2025 There are currently 14 Chinese brands in South Africa, but it seems to just be the beginning. Changan, Deepal, Lepas and iCAURr (not an Apple Car) are all also confirmed to release in South Africa in late 2025 and 2026 respectively. Gahagan confirmed that iCAUR will be a NEV brand that will offer a more accessible entry point into the premium electric space.
The South African
12-06-2025
- Automotive
- The South African
AUTO ambitions: 2025 Suzuki Fronx 1.5 GLX 4AT review
While the 2025 Suzuki Fronx may not be one of the Japanese manufacturers best-sellers in its lineup, it's certainly one of the most compelling. Moreover, the 2025 Suzuki Fronx 1.5 GLX 4AT keeps all the good stuff from the slope-roofed, coupe-styled crossover that impressed us last year. Let's also not forget how well the humble Japanese carmaker is doing in a contracting South African economy. The firm continues to set sales records, seemingly each month, according to NAAMSA sales data. As a result, the high-value marque is comfortably ensconced in third position for South African new-car sales in the passenger segment. There's no practical situation the 2025 Suzuki Fronx GLX 4AT doesn't handle with aplomb. Image: File Now the brand has brought a 2025 Suzuki Fronx 1.5 GLX 4AT to market. Clearly, it's aimed at motorists who'd rather not bother with a manual gearshift and third pedal. And as excellent as the 5MT Fronx is, we totally accept South Africa's unique market demands. Chat to any layperson in the street about commuting and the vast majority will say they just want something easy in traffic. Nevertheless, Suzuki's slope-roofed crossover joined the market somewhat late. But launching back in 2023 did at least allow the brand to survey the segment and make appropriate provisions. Key of which was the introduction of the 4AT in top-wrung GLX spec, retailing for R362 900. It hails from India – like most of Suzuki's cars sold in SA – because the Indian government gives tax breaks to cars manufactured that are shorter than four metres. Which, in turn, means savings are passed onto the consumer at the end of the day … Suzuki Fronx GLX 5MT model pictured. Image: File Accordingly, the 2025 Suzuki Fronx 1.5 GLX 4AT measures 3 995 mm long to adhere to the Indian restriction. It is 1 765 mm wide and stands 1 550 mm tall, with a wheelbase of 2 520 mm. Inside, there is no issue with head and shoulder space. The boot is rated at 304 litres, which is par for the course for compact crossovers nowadays. And you can fold the rear seats really easily for plenty of extra utility space. What we most enjoy is that the GLX is the highest-spec Fronx on offer. So, there's the contrasting black roof that gives it a sleek silhouette. Gunmetal alloy wheels, distinctive two-tier LED headlamps and the largest 9-inch touchscreen available comes with wireless Apple CarPlay. Plus, a 360-degree reverse camera, 4.2-inch LCD driver-info display, automatic climate control and cruise control, mean you'll want for nothing in the 2025 Suzuki Fronx GLX. The Fronx is yet another impressive offering built in India for Suzuki. Image: File As before, there's only one engine available in the 2025 Suzuki Fronx range. It's the bomb-proof naturally aspirated 1.5-litre, 4-cylinder petrol, which is good for 77 kW and 138 Nm of torque. It's a rev-happy engine that combines comfortably with the easy-shifting, four-speed automatic gearbox. Unfortunately, like in the CVT Swift and auto Jimny models we drove recently, going for two pedals instead of three does have its downsides though. Against the stopwatch the 2025 Suzuki Fronx 4AT is a bit tardier to 100 km/h, coming in slower than 10 seconds. Likewise, you'll be using more fuel to commute around. Our average eventually settled on 6.9 l/100 km, when the three pedal was closer to 5.9 l/100 km. Despite this, it accelerates in a linear fashion and is suitably easy-going and quiet at moderate throttle. You'll spot a 2025 Suzuki Fronx GLX by the contrasting roof and gunmetal alloy wheels. Image: File On the evidence of our review, we think the 2025 Suzuki Fronx 1.5 GLX 4AT will find plenty of happy homes in South Africa. The high-spec 9-inch infotainment and other bells and whistles is worth the R362 900 price of admission alone. Likewise, the build quality for the sub-continental offering really impressed us. Perhaps, the only slightly divisive issue is the name: Fronx. 'Yes, I just brought a new Fronx!'. Which you can explain to your mates is a portmanteau of 'Frontier' and 'Crossover,' just by the way. However, when you experience its peppy drive and composed road manners, you'll care less what it's called. 2025 Suzuki Fronx 1.5 GLX 4AT Engine: 1.5-litre petrol 1.5-litre petrol Transmission: 4-speed automatic 4-speed automatic Power: 77 kW 77 kW Torque: 138 Nm 138 Nm 0-100 km/h: 10.20 seconds (tested) 10.20 seconds (tested) Top speed: 170 km/h 170 km/h Consumption: 6.9 l/100 km (tested) 6.9 l/100 km (tested) Price: R362 900 Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
12-05-2025
- Automotive
- IOL News
The impact of Trump's tariffs on South Africa's automotive industry
Trump's April 2 'Liberation Day' announcement saw duties being levies across the world with South Africa attracting around 30%. Image: Kamil Krzaczynski / AFP US President Donald Trump's frightening import duties into that country are already pushing down sales of cars made locally for the export market and his moves effectively nullify benefits under the African Growth and Opportunity Act (AGOA). However, South Africans are nothing if not resourceful and are already planning how best to target alternative auto markets. The National Economic Development and Labour Council (Nedlac) provides figures that indicate that more than local 360,000 vehicles 'set sail' for more than 150 countries across the world in 2023. Of these, the best sellers were the Volkswagen Polo, followed by the Mercedes C-Class, the BMW X3, and then what it called a 'bakkie' tussle between the Ford Ranger and the Toyota Hilux, with the former winning out. Most locally produced vehicles for export go to Europe, where sales are already under threat due to that bloc's increasingly strict carbon emission requirements. Nedlac added that Isuzu and Nissan are also slowly making inroads into African markets. In 2024, however, exports dropped some 22.8%, which could be likely linked to the fact that 2023 was an all-time high, figures from NAAMSA (the Automotive Business Council) showed. Of South Africa's top export destinations in this sector, OEC noted that most vehicles produced in 2023 went to Germany, followed by the US, and then the UK. Now South Africa's exports to America are under threat, with Trump's sweeping tariffs already having an adverse impact. Smart Procurement stated that the South African automotive sector 'is particularly vulnerable' to tariffs. Its figures show that vehicles account for about a fifth of all exports to the US each year, amounting to about R33 billion annually. Trump's April 2 'Liberation Day' announcement saw duties being levies across the world with South Africa attracting around 30%. Although Trump walked back many of these taxes in the coming days and is in talks with several countries to negotiate better trade conditions, the local automotive industry has already been hit with a 25% export tax, and there could be more in the wings depending on which way the US President moves. Dr Paulina Mamogobo, the Automotive Business Council chief economist at NAAMSA said that US tariffs already had a rather pre-emptive impact on first quarter sales as exports to the US reduced from 6% in 2024 to 2% in the first three months of the year. Before the implementation of the new regulations, 99% of vehicles and automotive components from South Africa entered the US under the AGOA agreement, benefiting from duty-free treatment. Jenny Tala, director for Southern Africa at Germany Trade & Invest, said that the US' tariffs effectively nullify the benefits of AGOA, which poses a threat to South Africa's automotive manufacturing competitiveness. Tala said the solution is to diversify export markets by expanding regional and international trade relations. 'As we navigate shifting trade agreements, tariffs, and international relations, South African automotive businesses are actively seeking new partnerships and market opportunities," said Michael Dehn, MD at trade fair company Messe Frankfurt. Local companies are 'repositioning themselves within evolving trade frameworks' such as withing the African Continental Free Trade Area (AfCFTA) and other BRICS+ countries: Brazil, Russia, India, China among others, said Dehn. Mamogobo stated that the AfCFTA is a strategic response to many challenges, and it has opened up access to a $3.4 trillion economic market across 44 African countries by eliminating tariffs and boosting intra-regional trade. Yet, infrastructure gaps remain a significant challenge to fully realising this potential, she said. Ronel Oberholzer, head of sub-Saharan Africa Economics at S&P Global Market Intelligence, explained that the global automotive landscape is further complicated by China's oversupply of vehicles, especially EVs, potentially getting into African markets, creating direct competition for South African manufacturing, while India's low-cost advantage intensifies competitive pressures. As a result, she believes that BRICS countries may not be new markets so much as a source of further investments into Africa. IOL
Yahoo
01-04-2025
- Automotive
- Yahoo
South Africa seeks meeting with US on auto tariffs
JOHANNESBURG (Reuters) - South Africa will seek a meeting with U.S. authorities on auto tariffs, Trade Minister Parks Tau said on Tuesday, noting the levies are a concern as the country has preferential trade status with the United States. South Africa, whose exports of vehicles and parts into the United States is estimated at over $2 billion, could take a severe hit from a planned tariff of 25% on automobile imports unveiled last week by U.S. President Donald Trump. Tau said in a statement that the U.S. Section 232 tariffs are expected to apply to imports of cars and car parts from countries, including South Africa, that benefit from the U.S. African Growth and Opportunity Act (AGOA). AGOA provides duty-free access to the U.S. market for most agricultural and manufactured products, such as cars and parts exported by eligible African countries. "Automobile exports from South Africa accounted for 64% of South Africa's exports under AGOA in 2024, and are therefore a significant component of products currently benefiting under the preferential programme," Tau said. While South Africa's car exports to the United States go duty-free under AGOA, U.S. imports into South Africa also enjoy rebates under the country's Automotive Production Development Programme. South Africa's exports of automobiles accounts for only 0.99% of U.S. total vehicle imports and 0.27% of auto parts "and thus do not constitute a threat to U.S. industry", Tau added. "South Africa will seek a meeting with the United States authorities to discuss these developments, given the potential negative effect on the South African economy," Tau said. The representative body of South Africa's automotive industry, NAAMSA has said that it was actively assessing the potential impact of these tariffs and that it was engaging with its members and other key stakeholders. Among the car brands that South Africa exports to the U.S. are Mercedes-Benz and BMW.
