South Africa is exploring additional incentives for automakers in a bid to soften the blow from U.S. President Donald Trump’s tariffs on cars, Trade, Industry and Competition Minister Parks Tau said on Thursday.
“We’re currently considering the possibility of expanding the Automotive Industry Production Plan to help mitigate the impact on our industry,” Tau said during an interview with radio broadcaster Power FM.
The market for our product there is no limit, so already methanol is consumed more than 100 million tonnes of methanol is consumed mainly for the chemical industry at the moment.
“We’re currently modelling what the potential package could be for the auto sector, but also for other sectors so that we can do it within the means of the country to buffer the impact.”
The Automotive Production and Development Programme is an incentive programme that helps drive investment, innovation and job creation in the automotive industry. It offers various rebates and refunds on customs duties and manufacturers also receive incentives based on their production volumes.
The National Association of Automobile Manufacturers of South Africa has expressed concern over the 25% U.S. import tariff on cars, saying that it cannot be absorbed by manufacturers, which will result in additional costs for U.S. consumers and a reduced choice of South African-produced brands.
The U.S. is the third-largest destination for South African automotive exports, with approximately 35 billion rand ($1.8 billion) worth of vehicles shipped in 2024, accounting for 6.5% of total vehicle exports in 2024.
Reuters
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