South Africa Auto Industry Faces 12 Closures, 4,000 Job Losses Amid US Tariffs

South Africa's automotive industry is facing significant challenges due to low domestic sales of locally produced vehicles, high import penetration, stagnant localisation levels, and the impact of new US tariffs. Trade Minister Parks Tau reported that 12 companies have shut down over the past two years, resulting in over 4,000 job losses in a sector that employs 115,000 people. The localisation rate remains at 39%, well below the 60% target set by the South Africa Automotive Masterplan 2035, while 64% of vehicles sold are imports. The 30% US tariff on automotive imports, imposed in April by President Donald Trump, is severely affecting South Africa's $1.64 billion export market to the US, causing some manufacturers to lose contracts and threatening further layoffs. In response, South Africa has submitted a revised trade proposal to Washington and expanded its manufacturing incentive scheme to include electric vehicles and components. Despite the difficulties, international automakers such as Stellantis and China's Chery are exploring local production opportunities to boost localisation and support the industry.