South Africa hits record auto exports in 2025 despite U.S. tariffs

South Africa’s automotive industry posted record exports in 2025, shipping 414,268 vehicles, a 5.9 percent increase from 391,128 units in 2024, despite rising protectionist measures in key markets, the National Association of Automobile Manufacturers of South Africa (NAAMSA) reported Thursday.

Exports to the United States fell sharply to 6,530 units from 25,554 units in 2024 due to U.S. auto tariffs, while shipments to Asia dropped to 19,287 units from 29,265. Europe absorbed the bulk of South African vehicles, taking 332,695 units, up from 295,762, representing 80.3 percent of total exports.

In the fourth quarter, exports surged further, with 114,445 passenger cars (+15.2 percent) and 45,472 commercial vehicles (+17.4 percent) shipped abroad. Overall, 70.3 percent of domestic light-vehicle production was exported to 109 countries.

The industry faces domestic tax pressures, with levies accounting for up to 42 percent of vehicle prices, and growing competition from Morocco, which produced over 500,000 vehicles in 2024. In response, the government unveiled a new automotive industrial master plan through 2035, aiming to boost local content, sector employment, and global competitiveness.

South Africa’s automotive sector achieved record export levels in 2025 despite facing international headwinds, notably protectionist tariffs in the United States. According to the National Association of Automobile Manufacturers of South Africa (NAAMSA), total vehicle exports rose to 414,268 units, up 5.9 percent from 391,128 units in 2024.

While shipments to North America and Asia fell sharply due largely to U.S. auto tariffs and weaker demand from Japan Europe absorbed over 80% of exports, with 332,695 units shipped to the European Union and the United Kingdom. Exports now represent more than 70 percent of South Africa’s light-vehicle production, reaching 109 countries worldwide.

Domestically, high vehicle taxes, which can account for up to 42 percent of a car’s price and increasing competition from Morocco Africa’s largest auto producer since 2024 have added pressure on the sector. In response, the government has developed a new automotive industrial master plan to 2035, aiming to improve local component integration, global competitiveness, and sector employment while boosting South Africa’s share of global vehicle output.

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