Major shake-up for new car prices in South Africa

• The Department of Trade, Industry and Competition (DTIC) is expected to announce a new ad valorem duty structure for cars in South Africa, which will allow locally manufactured vehicles to compete on price with imported vehicles.
• The review comes at a time when local consumers are increasingly seeking affordable new energy vehicles (NEVs) to mitigate volatile fuel costs, and South Africa's automotive industry is facing challenges in building industrial momentum.
• The expected changes are expected to bolster the country's local car manufacturers and support the country's 2035 automotive masterplan goals, which aim to increase localisation rates and invest in energy and automotive decarbonisation.