Low domestic sales of locally made cars, an influx of imports and low levels of local content have led to 12 company closures and over 4,000 job losses in the South African motor industry over two years, the trade minister said on Wednesday.
South Africa, a market long dominated by the likes of Volkswagen, Toyota 7203.T and Mercedes-Benz, saw sales of 515,850 locally produced cars last year, far below the South Africa Automotive Masterplan 2035 target of 784,509, Minister Parks Tau told delegates at an auto parts conference.
Some 64 of vehicles sold in South Africa are imports. Additionally, localisation the level of local assembly, labour and components remains stagnant at 39, well short of the 60 target, while U.S. tariffs now significantly impact the countrys 28.7 billion rand 1.64 billion automotive exports, he added.