South African government advances support for auto industry

South Africa’s Trade, Industry and Competition Minister Parks Tau says the government is advancing measures to support the automotive industry as it faces potential headwinds from US tariff policies. Speaking at the National Association of Automotive Component and Allied Manufacturers Show in Gqeberha, Eastern Cape, Tau confirmed that amendments to the Automotive Production Development Programme Phase 2 (APDP2) for electric vehicles have been finalised.

The minister emphasised that the updated policy framework will help position South Africa as a competitive player in the global shift towards electric mobility, ensuring that local manufacturers can access emerging markets and meet future regulatory requirements. “We are not only safeguarding jobs in the automotive value chain but also creating opportunities for growth and innovation,” Tau said.

Industry leaders at the event welcomed the government’s commitment, noting that sustained policy support is essential for attracting investment and maintaining the country’s export competitiveness. Analysts warn, however, that the sector will need to adapt quickly to technological changes and trade dynamics to remain resilient in the face of global economic pressures.