Should SA hike tariffs on Chinese, Indian cars? Wrong move, says motoring expert

Local petrol heads would have been hard-pressed not to notice the huge influx of Chinese cars into the South African automotive market in recent years.

Jetour, BAIC, Chery, BYD, GAC and Jaecoo are just a few of the car-makers whose vehicles are beginning to dominate our roads.

Indian-made cars, too, are proving popular with local motorists, largely because they’re affordable and well-specced.

Now, the government is considering tariffs of up to 50% on vehicles imported from China and India, in a move aimed at protecting local manufacturing.

The Department of Trade, Industry and Competition is looking at measures to control inbound vehicle shipments, seen to be undercutting local producers.

One option is to adjust South Africa’s tariff schedule so it aligns its import duties with World Trade Organisation limits.

But motoring expert and ChangeCars.co.za founder Michael Pashut says it's the wrong move by the government.

"There are many, many negatives we haven't thought about.

"Reciprocal tariffs on our products going to markets. Right now, it ain't broke, don't fix it," says Pashut.

He says there is significant investment coming into South Africa from those countries.

"They are now starting to look. Let's take the Nissan factory, which has been taken over by Chery, the BAIC factory in PE, which hasn't got going yet but is already built, and Mahindra investing heavily in South Africa."

He was dubious when the influx began, but Pashut admits the genuine interest from China to make a mark on South Africa the right way has changed his mind.

"You go and increase tariffs to 25% or 50% in a short period, it will hurt the industry, not a shadow of a doubt in my mind."

To listen to Pashut, use the audio player below: