US tariffs of 25% on imported vehicles had no material effect on South African exports in the month since they were imposed.
Figures released by industry association Naamsa on Friday show that the local industry exported 31,822 vehicles in April, 6.6% fewer than the 34,088 of the corresponding month in 2024.
The cause of the decline, however, was the temporary suspension of production at Volkswagen Group Africa’s (VWGA) Eastern Cape assembly plant, to allow preparatory work for the introduction of a new car model.
VWGA is the local industry’s biggest exporter.
There was also good news for domestic sales. Naamsa reported that 42,401 cars and commercial vehicles were sold last month — an 11.9% improvement on the 37,899 of a year earlier.
After four months of the year, 186,433 vehicles had been sold, 10.6% more than the 168,634 of a year earlier.
New-car sales in April grew by 16.9%, from 25,751 to 30,101. Year-to-date, they are 19.3% ahead — up from 110,526 to 131,877.
For the first time in several months, April sales of light commercial vehicles (bakkies and minibus taxis) showed an improvement on a year earlier, by 3.2%.
All categories of heavier commercials also outperformed April 2024.
While the new US tariff measures are concerning, the resilience and competitiveness of South African automotive exports remain steadfast.
— Mikel Mabasa, Naamsa CEO
Naamsa CEO Mikel Mabasa said: “The new-vehicle sales performance encouragingly continued the upward momentum of the first quarter into the second quarter of 2025.
“Despite a brief return of load-shedding and domestic political uncertainty because of the VAT saga during the month, the domestic macroeconomic environment provided a degree of stability. Inflation fell to 2.7% year-on-year in March 2025, marking the lowest level since June 2020, aided by a notable easing in fuel costs.”
But it was the export performance that brought most relief.
Mabasa said the full effects of US President Donald Trump's decision to impose thetariff on April 3 were likely to be felt from July, after existing orders were delivered.
“While the new US tariff measures are concerning, the resilience and competitiveness of South African automotive exports remain steadfast.
“Our industry has navigated difficult global tides before, and we will compellingly do so again uncertainty is creating a very difficult environment for businesses and could hinder competitive strategies, delay capital investments, distort long-term planning and increase short-term operational volatility,” Mbasa said.
SA components exporters were also due to face 25% US tariffs this week, but Trump backed off on Tuesday after US automakers said the tariffs could cause production suspensions, job losses and massive vehicle-price increases.
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