South Africa Secures Chinese Indian Investments to Revitalize Auto Manufacturing Amid Industry Challenges

South Africa is securing significant investments from Chinese and Indian automakers to transition from semi-knocked-down (SKD) vehicle assembly to full-scale complete knocked-down (CKD) manufacturing, aiming to revitalize its automotive industry amid declining production and growing imports. Trade Minister Parks Tau highlighted commitments from Beijing Auto Industrial Corporation (BAIC) and Mahindra as part of efforts to strengthen the domestic manufacturing base and position South Africa as a continental automotive hub. Industry leaders stress that sustaining CKD production is critical to preserving local value creation and economic benefits, especially as vehicle imports flood the market and the sector faces an expensive shift to electric vehicles. However, the industry is challenged by US tariffs imposed by President Donald Trump, which have severely reduced South African auto exports to the US by 90%, threatening up to 100,000 jobs and pushing the country closer to reliance on Chinese and Indian investment. Analysts warn that without stronger protection against imports and faster EV infrastructure development, South Africa risks losing its status as Africa's leading vehicle producer to Morocco, which is expanding exports aggressively into Europe. The government is actively engaging with multinational automakers, including Toyota and Ford, to safeguard the industry's future amid global competition and tariff uncertainties.