Finance
South Africa's auto sector is not seeking steep import duty hikes, BMW CEO says
Published by Global Banking and Finance Review
Posted on January 28, 2026
2 min readLast updated: January 28, 2026
Quick Summary
BMW CEO clarifies that South Africa's auto industry is not seeking steep import duty hikes, focusing instead on policy adjustments.
BMW CEO: South Africa's Auto Industry Not Pushing for High Import Duties
South Africa's Automotive Industry and Tariff Discussions
By Nqobile Dludla
Current Import Duty Landscape
JOHANNESBURG, Jan 28 (Reuters) - South Africa's automotive industry is not calling for steep hikes in vehicle import duties and instead wants targeted auto policy adjustments to support domestic manufacturing, BMW South Africa's CEO said on Wednesday.
Impact on Consumers and Market
Peter van Binsbergen was responding to questions on remarks to parliament by the country's international trade commissioner, flagging the gap between South Africa's 25% duty on imported vehicles and the 50% maximum rate allowed by the World Trade Organization.
BMW's Performance in the Market
In the same parliamentary sitting on Tuesday, deputy trade minister Zuko Godlimpi told lawmakers that his ministry is reassessing hiking 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."
"We're looking for a fine-tuning of all the levers within APDP and not just one big hammer," said the CEO, who is also president of the country's car industry body Naamsa, referring to South Africa's automotive production incentive scheme.
A jump to the 50% ceiling would be "a shock to the system", said van Binsbergen, warning of unintended consequences for consumers, "the worst being affordability for the entry-level consumer".
BMW LEADS PREMIUM SEGMENT
The CEO said BMW's South African arm recorded the highest-ever premium segment share locally for its BMW brand last year, growing to 46.2% from 44.3% in 2024 despite ongoing affordability pressures and intensifying competition, including from Chinese brands.
The BMW brand also grew retail sales by 12% in 2025, while its Rosslyn plant produced more than 79,000 vehicles last year, the highest volume in the plant's 52-year history.
The automaker plans to launch the BMW iX3, the first model from the all-electric "Neue Klasse" series, in South Africa in the second half of the year.
The model is one of BMW's great hopes in the premium electric vehicle market globally. In South Africa, the BMW brand has a 22% market share of the battery electric vehicle segment.
(Reporting by Nqobile Dludla; Editing by Jan Harvey)
Key Takeaways
- •BMW CEO opposes steep import duty hikes in South Africa.
- •Current import duty is 25%, with a WTO cap at 50%.
- •Industry seeks policy adjustments to boost local manufacturing.
- •BMW leads premium segment with record market share.
- •BMW plans to launch the iX3 electric model in South Africa.
Frequently Asked Questions about South Africa's auto sector is not seeking steep import duty hikes, BMW CEO says
1What is the automotive industry?
The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles. It includes companies that produce cars, trucks, and automotive parts.
2What is domestic manufacturing?
Domestic manufacturing refers to the production of goods within a country's borders. It supports local economies and creates jobs while reducing reliance on imports.
3What is an electric vehicle?
An electric vehicle (EV) is a type of automobile that is powered by electricity instead of gasoline or diesel. EVs are known for being environmentally friendly and reducing carbon emissions.
4What is market share?
Market share is the portion of a market controlled by a particular company or product. It is often expressed as a percentage of total sales in the market.
