Trade union the Motor Industry Staff Association (MISA) says the Department of Trade, Industry and Competition (dtic) has agreed to meet with it on critical automotive and trade policy matters that directly affect thousands of motor retail workers across the country.

MISA earlier his month expressed concerns about the dtic’s proposals to potentially raise import tariffs on Chinese and Indian vehicles coming into the country, since these vehicles sales have greatly supported the motor retail sector and the livelihoods of workers at dealerships.

MISA drafted a plan outlining alternative measures to 50% import tariffs – compared with the current 25% - to mitigate impacts on the retail motor industry.

The association emphasises the need for government measures that support local investment without harming the retail motor industry.

Some automotive original-equipment manufacturers (OEMs) have called for these higher import tariffs on Chinese and Indian vehicles to ensure local manufacturers are able to compete on an even footing, given the surge in imports of vehicles from India and China.

However, OEMs have also stressed that higher import tariffs are but one of the policy decisions that need to be taken to support local manufacturers.

MISA confirms that one in every four vehicle sales in South Africa are currently Chinese or Indian brands, compared with one in every six vehicles previously.

MISA is also concerned about the dtic not having consulted with MISA before submitting to a parliamentary committee its intention to increase the import tariffs, despite MISA being the majority trade union in the retail motor industry, representing 75 000 members of the industry’s 310 000 employees.

MISA CEO Martlé Keyter welcomes the dtic’s internal review to assess potential measures to protect the automotive industry but believes this should not be done to the detriment of the retail motor industry.

MISA says it is committed to the aims of the Automotive Industry Master Plan 2035 to expand the automotive industry by increasing local content, improve global competitiveness, deepen value addition and transform ownership.

However, it states that, up to now, the dtic has failed to take into account the jobs that the Chinese and Indian brands have created in the retail motor industry.

Since 2020, there has been a loss of 41 dealerships countrywide – decreasing from 3 016 to 2 975, Keyter points out. “The bloodbath in the retail motor industry would have been much worse if not for the Chinese and Indian vehicle brands establishing new dealership networks across South Africa,” she adds.

Since dtic automotive chief director Mkhululi Mlota undertook to respond to MISA’s letter with proposed dates for engagement, MISA has outlined its points of interest as being clarity on the dtic’s policy direction regarding potential tariff adjustments, providing organised labour’s perspective on how proposed measures may affect employment stability and industry growth, and discussing how MISA can contribute constructively to ongoing policy discussions in the interest of inclusive economic development.