South African automotive industry faces difficult future amid US tariffs
The South African automotive sector is preparing to be particularly hard hit by the US tariffs.
Picture: © pramotephotostock/123rf.com
CapeTalk’s Lester Kiewit speaks with Renai Moothilal, CEO of the National Association of Automotive Component and Allied Manufacturers (NAACAM).
Listen below:
The United States will implement 30% trade tariffs on imports from South Africa on 7 August, but the automotive sector is already feeling the impact.
Jendamark Automation, a Gqeberha-based company, is reportedly set to lose R750 million as a result of the tariffs.
Their customers include Ford, VW, BMW, and Mercedes-Benz.
Half of its revenue comes from exports to the US, and only 15% comes from South Africa.
Moothilial says this will have a negative short-term and long-term effect on the industry.
“We are already seeing a situation where companies are starting to have new orders closed.”
- Renai Moothilal, CEO - NAACAM
He says that the industry is expecting job losses if this continues.
Moving forward, he says South Africa must diversify its exports, particularly to the rest of Africa, where opportunities exist.
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