South Africa’s automotive sector is not advocating for aggressive increases in vehicle import tariffs, according to Peter van Binsbergen, Chief Executive Officer of BMW South Africa and President of the National Association of Automobile Manufacturers of South Africa (Naamsa). His comments follow recent statements made by South Africa’s international trade commissioner during a parliamentary session, which highlighted the disparity between the country’s existing 25 percent vehicle import duty and the 50 percent threshold permitted under World Trade Organization (WTO) frameworks.
In a media briefing held in Johannesburg, van Binsbergen emphasised that the automotive industry is not requesting an escalation to the maximum WTO-bound rate, but rather calls for a nuanced policy response that prioritises domestic production while remaining sensitive to market dynamics. “No one’s asking for that from the industry side. That must be very clear,” van Binsbergen stated, clarifying that the commissioner had merely noted what was technically possible within WTO parameters, rather than indicating a new policy direction.
Deputy Minister of Trade, Industry and Competition, Zuko Godlimpi, confirmed in Parliament that the ministry is currently reassessing tariffs on imported vehicles as part of a broader review of trade and industrial strategy. However, van Binsbergen cautioned against the potential fallout of abrupt changes, describing a hypothetical shift to the 50 percent ceiling as “a shock to the system” with serious implications for consumer affordability, particularly among entry-level buyers who are already grappling with constrained purchasing power.
The industry instead seeks a recalibration of policy levers within the Automotive Production and Development Programme (APDP), which forms the cornerstone of South Africa’s automotive manufacturing strategy. Rather than a sweeping overhaul, stakeholders are calling for targeted refinements that support localisation and competitiveness without destabilising consumer access or macroeconomic stability.
BMW’s South African operations continue to play a significant role in the country’s industrial economy. The company reported that in 2025 its Rosslyn plant produced over 79,000 vehicles, marking the highest production output in the facility’s 52 year history. BMW also achieved a premium segment market share of 46.2 percent in the same year, up from 44.3 percent in 2024, demonstrating resilience in a challenging economic climate and amid intensifying competition from emerging global players, including Chinese automotive brands.
Retail sales of BMW vehicles in South Africa grew by 12 percent in 2025, and the brand captured a 22 percent share of the battery electric vehicle (BEV) segment locally. This market growth coincides with BMW’s broader global ambitions in electrification. The company is set to introduce the BMW iX3, part of the all electric Neue Klasse series, into the South African market in the latter half of the year. This model is central to BMW’s global strategy in the premium electric mobility space and will likely shape the regional BEV landscape upon its arrival.
The discourse around vehicle import duties and industrial policy in South Africa reflects broader continental challenges. Many African economies face the dual imperative of fostering industrialisation while safeguarding affordability and inclusivity. The automotive sector, as a capital intensive and strategically significant industry, occupies a unique position in these efforts. Calls for balanced and evidence based policy interventions resonate across the region, especially as governments navigate the pressures of global economic fragmentation and the transition to sustainable technologies.
South Africa’s automotive industry is emblematic of the continent’s wider push to establish itself as a competitive manufacturing hub. The current policy discussions present an opportunity to chart a developmental path that reflects Africa’s priorities, avoids extractive patterns of investment, and ensures that industrialisation remains socially embedded and economically inclusive.
Van Binsbergen’s remarks reaffirm the sector’s commitment to dialogue and continuity rather than rupture. In a global context where industrial policy is often shaped by reactionary impulses, the emphasis on calibrated and collaborative reform offers a more sustainable approach. As the automotive landscape evolves, South Africa and the continent at large must navigate complexity with a clear focus on equity, resilience and long term vision.
