Don’t protect vehicle assembly sector to the detriment of the retail sector, warns MISA
South Africa must strike a balance between protecting its automotive manufacturing sector against the impact of imported vehicles from China and India, while not hampering the growth of its retail motor industry, says trade union the Motor Industry Staff Association (MISA).
MISA represents more than 75 000 members in the retail motor industry.
MISA says while it welcomes the Department of Trade, Industry and Competition’s recent assessment of the potential measures available to government to protect the automotive assembly industry against the flood of imports, it believes that these remedies should not be rolled out to the detriment of the retail motor industry.
“It is late in the game for the South African government to consider imposing tariffs of up to 50% on vehicles from China and India,” says MISA operations CEO Martlé Keyter.
“Government should look at the entire economy and equally support the retail motor industry where these brands have been creating jobs.”
MISA also believes, however, that government should focus on encouraging Chinese and Indian brands to invest in manufacturing vehicles, parts and components locally.
“The influx of Chinese and Indian brands has stimulated the local market and created massive competitiveness,” says Keyter.
“The result? New vehicle sales records for three consecutive months at the end of 2025, not only surpassing pre-pandemic levels for the first time, but also reaching highs not seen in a decade.”
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