Commit to the country but demand 'level playing field' domestically.
South African-based vehicle manufacturers are increasing the pressure on the government for a level playing field between local original equipment manufacturers (OEMs) and importers.
Volkswagen Group Africa (VWGA) and the Ford Motor Company of Southern Africa this week both recommitted themselves to South Africa but called on the government to ensure fair competition and a level playing field in the domestic market.
Toyota South Africa Motors (TSAM) expressed similar sentiments in July at the offline ceremony for the 9th generation Hilux, with R10.4 billion invested in South Africa for the new model.
These comments were made against the backdrop of the surge in affordable Chinese vehicle sales in recent years, with these vehicles sold at prices lower than many competing European and Japanese brands.
TransUnion reported in June that Chinese brands accounted for more than 19% of new passenger and light commercial vehicle (LCV) sales in the first quarter of 2026 – almost one in five of the new vehicles sold in SA.
Somewhat ironically, the International Trade Administration Commission of South Africa (Itac) on Tuesday reported that it had signed a renewed record of understanding (RoU) on trade remedy cooperation with the Trade Remedies Investigation Bureau (TRIB) of China’s Ministry of Commerce.
It said the signing of the RoU marks “a significant milestone in trade relations between South Africa and China”.
It establishes a strengthened framework for cooperation on matters such as anti-dumping, countervailing and safeguard measures.
Volkswagen brand CEO Thomas Schäfer and VWGA chair and MD Martina Biene both stressed that Volkswagen remains committed to South Africa at an event attended by President Cyril Ramaphosa to celebrate the company’s 75th anniversary in South Africa on Monday night.
Biene highlighted the severe challenges currently confronting Volkswagen and the South African automotive industry.
She told Ramaphosa that Volkswagen and the locally based OEMs “need decisive policy action and greater responsiveness to the concerns we have consistently raised”.
“These government interventions are critical to safeguarding the long term sustainability and competitiveness of Volkswagen, the six OEMs in South Africa, as well as the automotive sector as a whole,” she said.
“With the right policy environment and continued collaboration between government and industry, we can secure a sustainable future for our business, our employees, our communities, and South Africa’s automotive sector.”
Schäfer called for a renewal of the partnership with the South African government, stressing that great industries are never built by companies alone but by companies and governments that trust one another and move in the same direction.
“Our industry is transforming faster than at any point in its history,” he said.
“Every global manufacturer is deciding, right now, where to build the cars of the next decade – and those decisions are won by the countries that offer a clear, stable and competitive path forward.”
But he stressed that a framework only delivers if it is fair.
“Today, cars built in this country – by South African hands – compete against a rising tide of imports that bring no plant, no jobs, and no future to this economy.
“A company that builds here, employs here and exports from here cannot compete on unequal terms,” said Schäfer.
“So our ask is a simple one: a level playing field. The same rules, the same conditions, for every manufacturer that wants to sell in this market.
“Protect the industry that builds in South Africa – and it will keep building in South Africa.”
Volkswagen has over the past few years invested more than R4 billion in South Africa for the production of a third model in the country, the Tengo sport utility vehicle (SUV).
Biene said Volkswagen’s Kariega (Uitenhage) plant will in less than 100 days begin production of the Tengo.
She warned in February that 2026 is “make or break” for the company in South Africa.
She said she had written a letter to Ramaphosa prior to Christmas to tell him it is very important for Volkswagen South Africa to get an investment decision this year from its parent company for the next project.
Ford on Tuesday reported the release of what it termed a bold new corporate manifesto that draws a line under its clear, sustained commitment to South Africa, customers and dealers and an enhanced commitment to champion the critical role industrialisation plays in South Africa’s future.
Neale Hill, president of Ford Motor Company, Africa Operations, said the company is declaring that the intention for its second century in South Africa is to be an unwavering champion of industry and industrialisation as drivers of shared value.
“We call on government, industry bodies and stakeholders to come together to ensure local automotive manufacturing can compete on a fair, strong and level playing field domestically and globally.
“This manifesto is not a ‘marketing moment’. This manifesto is our declaration to South Africa: we will continue to invest, to build and to employ,” said Hill.
“Equally we will continue to support the need for policy and regulatory conditions that allow local manufacturers to compete fairly against those who simply import vehicles into this market.”
Ford’s manifesto calls on government, industry bodies and stakeholders to work together to close this gap, including through the ongoing development of programmes such as the second phase of the Automotive Production and Development Programme (APDP2), to ensure that companies that invest capital, create jobs and build local skills are not placed at a structural disadvantage to those who do not share the same commitment to the country.
“This is not about protectionism for its own sake. It is about ensuring that the enormous investments already made in this country, and the investments still to come, are not undermined by uneven operating realities,” he said.
Hill said that with this manifesto, Ford South Africa is calling on government, policymakers, industry partners and fellow manufacturers to join in advocating for a regulatory framework that supports local industrialisation, protects existing investment, and creates the conditions for continued growth.
He said Ford believes a fair and level playing field is not only good for manufacturers but is essential for the millions of South Africans whose livelihoods, directly and indirectly, depend on a thriving local automotive industry.
Speaking at Volkswagen’s anniversary event, Ramaphosa said the government is determined to ensure that South Africa remains an important global manufacturing base for the vehicles of the future.
“Government is working to ensure there is a stable, predictable and supportive policy environment in which automotive companies can invest, localise and grow.
“We are reviewing the South African Automotive Masterplan and the automotive policy framework to ensure that they respond to the changing conditions facing the industry.
“Detailed discussions are underway among all partners, including the industry, unions and government, to develop a common programme to grow and sustain the automotive sector in South Africa.
“We are committed to concluding this work as a priority,” he said.
Ramaphosa said South Africa needs a sustainable plan that is suited to changing circumstances and will address constraints, unlock opportunities, build skills, create policy certainty and enhance South Africa’s competitiveness as an investment destination.
This article was republished from Moneyweb. Read the original here.
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