South Africa’s automotive industry is not pushing for steep increases in vehicle import duties and is instead calling for targeted adjustments to auto policy to better support local manufacturing, BMW South Africa CEO Peter van Binsbergen said on Wednesday, according to Reuters report.
He was responding to questions following remarks made to parliament by the country’s international trade commissioner, who highlighted the gap between South Africa’s current 25% duty on imported vehicles and the 50% maximum rate permitted under World Trade Organization rules.
During the same parliamentary sitting on Tuesday, Deputy Trade Minister Zuko Godlimpi told lawmakers that the ministry is reassessing the possibility of raising tariffs on imported vehicles.
“Fifty percent is the bound rate within WTO. I can tell you now, no one’s asking for that from the industry side. That must be very clear,” van Binsbergen told journalists.
“He (the commissioner) was just saying what’s possible.” Van Binsbergen, who also serves as president of the country’s car industry body Naamsa, said the sector is focused on refining existing incentives rather than pursuing sharp tariff increases.
“We’re looking for a fine-tuning of all the levers within APDP and not just one big hammer,” he said, referring to South Africa’s automotive production incentive scheme.
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He warned that a move to the 50% ceiling would be “a shock to the system” and could have unintended consequences for consumers, “the worst being affordability for the entry-level consumer”.
Van Binsbergen also highlighted BMW’s performance in the local market, saying the company’s South African arm recorded its highest-ever premium segment share for the BMW brand last year.
Market share rose to 46.2% from 44.3% in 2024, despite continued affordability pressures and intensifying competition, including from Chinese brands.
The BMW brand grew retail sales by 12% in 2025, while its Rosslyn plant produced more than 79,000 vehicles last year, marking the highest output in the facility’s 52-year history.
Looking ahead, the automaker plans to launch the BMW iX3, the first model from its all-electric “Neue Klasse” series, in South Africa in the second half of the year.
The model is seen as one of BMW’s key prospects in the global premium electric vehicle market. In South Africa, the BMW brand currently holds a 22% share of the battery electric vehicle segment.
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Image Credit: Business Day
