How safer vehicles could drive up prices in South Africa

A regional leader of one of the largest car manufacturers in the world has welcomed regulations aimed at improving vehicle safety in South Africa, but says they should be applied consistently and that specifications should be thorough to save lives.

Neale Hill, president of Ford Africa, told Business Times in Cape Town this week that the global auto giant was already consistently raising vehicle safety standards for its models in the country and region.

“[Ford] Territory is our entry-level passenger [vehicle]. It’s the entry point to our vehicle line-up [in terms of] base specification. The Ambiente has six airbags. The minimum standard in South Africa is two. We’re already absorbing the cost, and the reason why I say absorbing the cost is that we have to be market competitive versus whatever else is in the market,” he said.

“When it comes to the cost associated with including or deploying safety mechanisms, you’ve also got to differentiate between hardware and software. So, for airbags, you’ve got hardware. You’ve got to have an electronic system that activates the deployment of those airbags in the event of an accident, and an electronic stability programme.”

Hill’s remarks come as the government advances proposed regulations by the department of trade, industry & competition and the National Regulator for Compulsory Specifications to introduce safety requirements for manufacturers and align with global standards.

According to the government’s plan to revise the minimum safety standards for all new passenger cars sold locally, it will be compulsory for new vehicles to be fitted with airbags for all passengers, stoking concerns about rising production costs for manufacturers.

The regulations will also require manufacturers to use materials for vehicle body shells that meet the same standards applied in Europe, the US and other jurisdictions where they produce and sell vehicles.

We’re upping from two airbags maybe to four. I haven’t even seen the, you know, the safer car regulation, but the technology exists within all of the OEMs [original equipment manufacturers] that are either locally manufacturing or importing, so quite frankly it’s not like we have to develop new technology; it’s about deploying the technology.

—  Neale Hill, Ford Africa president

Hill said while the sector had an agreement for the introduction of safer cars by 2030, there was little reason to wait until then. The sector should be moving a lot faster in this particular regard and shouldn’t be compromising on safety in terms of what goes into their vehicles.

“We’re upping from two airbags maybe to four. I haven’t even seen the, you know, the safer car regulation, but the technology exists within all of the OEMs [original equipment manufacturers] that are either locally manufacturing or importing, so quite frankly it’s not like we have to develop new technology; it’s about deploying the technology.”

He said the OEMs in the auto sector were capable of enhancing vehicle safety standards in South Africa and that plans had been in motion to do so for years.

“We’ve got the wherewithal somewhere in the world to be able to do it; it’s not like this is some mystical thing, and what I’m talking about here is four airbags, electronic stability programmes, and things like that.”

The industry’s concern is that regulations may raise prices on new vehicles, pushing consumers further toward cars manufactured in China.

According to TransUnion’s Quarter 1 2026 Mobility Insights Report, the South African market has shown rapid growth in Chinese brands and rising interest in hybrid vehicles.

“Passenger vehicle sales reached 114,517 units in Q1 2026, with year-on-year growth moderating to 12.6%. Chinese brands account for more than 19% of new passenger and light commercial vehicle sales nationally. Hybrid vehicle interest rose to 39%, reinforcing hybrids as South Africa’s primary pathway in the shift toward electrified vehicles.”

The TransUnion report says the South African passenger vehicle market remained resilient in the first quarter of this year, but demand is evolving. Further, that rising affordability pressures, higher fuel costs, the growth of Chinese brands and shifting powertrain preferences are reshaping the automotive landscape.

Renai Moothilal, CEO of the National Association of Automotive Component and Allied Manufacturers, told parliament earlier this year that Chinese brands’ price competition and state support have aided aggressively priced imports into global markets such as South Africa.

In an update to parliament on the auto sector masterplan, the department of trade, industry & competition said that with 304,355 light vehicles imported in 2024 — 57.1% from India and 17.1% from China — the domestic manufacturing base faces increasing pressure, especially as recent imports from China offer advanced technology-laden products at very competitive prices.

Bobby Ramagwede, CEO of the Automobile Association, said it was unfortunate car manufacturers had waited for the government to revise domestic standards before introducing safety features already required in other jurisdictions.