South African vehicle exports grew to a record 414,268 units in 2025 despite American President Donald Trump’s tariffs.
The figure was up 5.9% compared to the 391,128 units exported in 2024, said Naamsa in its latest quarterly review of business conditions in the South African motor vehicle manufacturing industry. Comprising 70.3% of total light domestic vehicle production, the 414,268 left- and right-hand drive cars and light commercial vehicles were exported to 109 countries.
Vehicle exports to North America were affected by the Section 232 protectionist automotive duty imposed by the US, falling from 25,554 units in 2024 to 6,530 units in 2025. Exports to Asia also declined from 29,265 to 19,287 units over the same period due to decreased vehicle exports to Japan.
However, increased exports to other regions lifted the overall figure. This included a growth to 332,695 units shipped to Europe last year compared to 295,762 in 2024. Economic Partnership Agreements (EPAs) with the EU and the UK ensured that the region dominated exports and accounted for 80.3%, said Naamsa.
“South Africa’s automotive industry is export-orientated, relying heavily on trade agreements to sustain export volumes and competitiveness,” said Norman Lamprecht, Naamsa’s chief trade and research officer.
“The export landscape is anticipated to remain complex, as the outlook for the year ahead is increasingly shaped by heightened protectionism across several of South Africa’s key export markets.”
Investment decisions for future vehicle platforms are being made now. Clarity on implementation rules, timelines and incentive structures is critical
— Naamsa
With 57% of all light vehicles produced in South Africa going to the EU and UK, developments in the region have a direct impact on the domestic automotive industry, such as the legislation to greatly reduce sales of new internal combustion engine (ICE) vehicles in the EU and the UK from 2035 onwards.
The EU recently relaxed its planned total ban on ICE vehicles from 2035, shifting from a 100% reduction in tailpipe emissions to a 90% target, allowing for a small percentage of non-electric vehicles to remain in production.
South Africa’s vehicle production base needs to align with the technology shift of global value chains to ensure that the country remains part of the global supply network, said Lambrecht.
Naamsa reiterated its call for clear government policy that would encourage the local manufacture of new energy vehicles (NEVs).
“A credible transition pathway must explicitly recognise battery electric vehicles, plug-in hybrids and hybrid technologies as part of a sequenced and realistic decarbonisation trajectory,” said Naamsa’s chief policy officer Tshetlhe Litheko in his response to President Cyril Ramaphosa’s state of the nation address last week.
Litheko said Naamsa welcomed the announcement of a 150% tax deduction for investment in NEVs, alongside support for local battery production, as a strong and positive supply-side signal to investors and global parent companies allocating future vehicle platforms.
The tax break provides a tax deduction on investments in electric and hydrogen-powered vehicle production and the motor industry’s request remains to also include hybrids and plug-in hybrid investments.
Naamsa stressed that South Africa’s transition framework must remain technology-neutral, export-aligned and globally competitive.
“Investment decisions for future vehicle platforms are being made now. Clarity on implementation rules, timelines and incentive structures is critical. A technology-neutral framework, combined with supportive domestic market measures, will significantly enhance South Africa’s competitiveness in attracting new model allocations and sustaining export growth,” said Litheko.
Furthermore, supporting the affordability and attractiveness of NEVs for the South African public remains crucial, said Naamsa.
So far the government has not heeded the motor industry’s call for domestic consumer incentives — for instance, by decreasing import duties on NEVs — to make them more affordable, as has happened in other countries to drive their sales growth.
NEV sales comprised only 2.8% of South Africa’s total new-car market in 2025, though the number grew by 7.1% to 16,716 units compared to the 15,611 units in 2024.
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