{"id":50724,"date":"2026-01-28T16:27:05","date_gmt":"2026-01-28T16:27:05","guid":{"rendered":"https:\/\/www.europesays.com\/africa\/50724\/"},"modified":"2026-01-28T16:27:05","modified_gmt":"2026-01-28T16:27:05","slug":"south-africas-auto-sector-is-not-seeking-steep-import-duty-hikes-bmw-ceo-says","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/africa\/50724\/","title":{"rendered":"South Africa&#8217;s auto sector is not seeking steep import duty hikes, BMW CEO says"},"content":{"rendered":"<p>JOHANNESBURG, Jan 28 (Reuters) &#8211; South Africa&#8217;s automotive industry is not calling for steep hikes in vehicle import duties and instead wants targeted auto policy adjustments to support domestic manufacturing, BMW South Africa&#8217;s CEO said on Wednesday.<\/p>\n<p>Peter van Binsbergen was responding to questions on remarks to parliament by the country&#8217;s international trade commissioner, flagging the gap between South Africa&#8217;s 25% duty on imported vehicles and the 50% maximum rate allowed by the World Trade Organization.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/africa\/south-africas-auto-sector-is-not-seeking-steep-import-duty-hikes-bmw-ceo-says-2026-01-28\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Fafrica%2Fsouth-africas-auto-sector-is-not-seeking-steep-import-duty-hikes-bmw-ceo-says-2026-01-28%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>In the same parliamentary sitting on Tuesday, deputy trade minister Zuko Godlimpi <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/africa\/south-africa-make-public-plans-boost-local-vehicle-production-2026-01-27\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">told lawmakers<\/a> that his ministry is reassessing hiking tariffs on imported vehicles.<\/p>\n<p>&#8220;Fifty percent is the bound rate within WTO. I can tell you now, no one&#8217;s asking for that from the industry side. That must be very clear,&#8221; van Binsbergen told journalists. &#8220;He (the commissioner) was just saying what&#8217;s possible.&#8221;<\/p>\n<p>&#8220;We&#8217;re looking for a fine-tuning of all the levers within APDP and not just one big hammer,&#8221; said the CEO, who is also president of the country&#8217;s car industry body Naamsa, referring to South Africa&#8217;s automotive production incentive scheme.<\/p>\n<p>A jump to the 50% ceiling would be &#8220;a shock to the system&#8221;, said van Binsbergen, warning of unintended consequences for consumers, &#8220;the worst being affordability for the entry-level consumer&#8221;.<\/p>\n<p>BMW LEADS PREMIUM SEGMENTThe CEO said BMW&#8217;s <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/BMWG.DE\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(BMWG.DE), opens new tab<\/a> South African arm recorded the highest-ever premium segment share locally for its BMW brand last year, growing to 46.2% from 44.3% in 2024 despite ongoing affordability pressures and intensifying competition, including from Chinese brands.<\/p>\n<p>The BMW brand also grew retail sales by 12% in 2025, while its Rosslyn plant produced more than 79,000 vehicles last year, the highest volume in the plant&#8217;s 52-year history.<\/p>\n<p>The automaker plans to launch the BMW iX3, the first model from the all-electric &#8220;Neue Klasse&#8221; series, in South Africa in the second half of the year.<\/p>\n<p>The <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/en\/bmw-unveils-ix3-ev-hopeful-push-recover-market-share-2025-09-05\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">model<\/a> is one of BMW&#8217;s great hopes in the premium electric vehicle market globally. In South Africa, the BMW brand has a 22% market share of the battery electric vehicle segment.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Nqobile Dludla; Editing by Jan Harvey<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><a data-testid=\"AuthorBioImageLink\" class=\"author-bio-module__author-image__jcaG3\" href=\"https:\/\/www.reuters.com\/authors\/nqobile-dludla\/\" referrerpolicy=\"no-referrer-when-downgrade\" tabindex=\"-1\" rel=\"nofollow noopener\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/www.reuters.com\/resizer\/v2\/https%3A%2F%2Fauthor-service-images-prod-us-east-1.publishing.aws.arc.pub%2Freuters%2F832243be-fa85-401b-9461-4c7fd7b71fc8.png?auth=7d618fcb4514e54a12a5ba25eaf3b5014021ed468d19257a937ee75498be8f9c&amp;height=120&amp;width=120&amp;quality=80&amp;smart=true\" alt=\"Nqobile Dludla\"\/><\/a><\/p>\n<p data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__base__o--Cl body-module__extra_small_body__Bfz20 author-bio-module__description__9ynkB\">Nqobile is a Johannesburg-based reporter covering the South African retail, telecom and tech sectors. She has been a journalists for about 10 years. She joined Reuters in 2015 and has covered a variety of beats ranging from pharma, health to property and banking.<\/p>\n","protected":false},"excerpt":{"rendered":"JOHANNESBURG, Jan 28 (Reuters) &#8211; South Africa&#8217;s automotive industry is not calling for steep hikes in vehicle import&hellip;\n","protected":false},"author":2,"featured_media":50725,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[52],"tags":[488,5352,5353,29931,29932,685,686,5355,24805,2844,1762,4019,3814,2845,1783,698,710,703,707,701,709,2847,715,495,1787,1784,1788,1782,1853,711,491,493,1397,1768,714,690,695,29933,1777,1766,29930,29170,29171,5349,20986,3017,1399,131,26286,24803,5351,4960,26288,1396,1855],"class_list":["post-50724","post","type-post","status-publish","format-standard","has-post-thumbnail","category-south-africa","tag-afr","tag-aut","tag-auto","tag-autpt","tag-autpt1","tag-bact","tag-biz","tag-carm","tag-carm1","tag-ceeu","tag-cmpny","tag-cprod","tag-cycs","tag-de","tag-destabn","tag-destabx","tag-destafn","tag-destbnx","tag-destdnp","tag-deste","tag-destfun","tag-destoukbsm","tag-destozabsm","tag-destozatpm","tag-destpco","tag-destpsc","tag-destrbn","tag-destrnp","tag-destsf","tag-destucdptest","tag-emea","tag-emrg","tag-europ","tag-ezc","tag-fin","tag-gen","tag-pol","tag-prdlch","tag-privt","tag-publ","tag-ratifinancial-results","tag-ratimanufacturing","tag-ratiproducts","tag-ratiregulatory-policy","tag-res","tag-rulessouth-africa","tag-safr","tag-south-africa","tag-topicbusiness-tariffs","tag-topicrati-strategy","tag-topicrati-supply-chain-manufacturing","tag-trd","tag-trf","tag-weu","tag-za"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/50724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/comments?post=50724"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/posts\/50724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media\/50725"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/media?parent=50724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/categories?post=50724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/africa\/wp-json\/wp\/v2\/tags?post=50724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}