• South Africa exported a record 414,268 vehicles in 2025, up 5.9% year on year, according to National Association of Automobile Manufacturers of South Africa (NAAMSA).
• Exports to United States plunged due to protectionist auto tariffs, while Europe absorbed 80.3% of shipments.
• Authorities prepared a new auto industrial master plan to 2035 to counter domestic tax pressures and rising competition from Morocco.

South Africa exported 414,268 vehicles in 2025, up 5.9% from 391,128 units in 2024, NAAMSA said in its latest quarterly report. The result confirmed sector resilience as protectionist measures tightened across key markets, notably the United States.

Pullback in North America and Asia

Exports to North America fell sharply to 6,530 units in 2025 from 25,554 units in 2024. U.S. protectionist auto taxes weighed on the competitiveness of South African vehicles. Exports to Asia also declined to 19,287 units from 29,265 units, driven mainly by weaker shipments to Japan.

Despite regional setbacks, the overall trend remained positive. Exports accounted for 70.3% of national light-vehicle production and reached 109 countries. In the fourth quarter of 2025, momentum accelerated, with 114,445 passenger cars exported (+15.2% year on year) and 45,472 commercial vehicles (+17.4%).

Europe as the Main Outlet

To offset declines in North America and Asia, Pretoria intensified its focus on Europe. Shipments to the European Union and the United Kingdom rose to 332,695 units in 2025 from 295,762 units a year earlier. Europe now absorbs 80.3% of South Africa’s vehicle exports, or nearly four out of five units sold abroad.

Economic partnership agreements with Brussels and London continued to support competitiveness. However, this dependence exposed the industry to European regulatory shifts, including the planned 2035 ban on new internal-combustion vehicle sales.

Domestic Tax Pressure and Moroccan Competition

While exports performed strongly, the domestic market remained under fiscal strain. The Audit Bureau of Circulations of South Africa said taxes can account for up to 42% of the price of a new vehicle. High levies affected even entry-level models and pushed some consumers toward cheaper imports.

Competition also intensified from Morocco, which surpassed 500,000 vehicles produced in 2024 and overtook South Africa as Africa’s leading auto producer. In response, the government prepared a comprehensive overhaul of its automotive industrial policy. In January, Mkhululi Mlota, director general for automotive at the Department of Trade, Industry and Competition, presented a master plan to Parliament targeting 2035.

The program aims to deepen local component integration, improve global competitiveness, double sector employment, and lift South Africa’s share of global vehicle output to 1%.

Henoc Dossa