South Africa ends subsidies for imported vehicle kits

South Africa will phase out support for automakers importing near-complete vehicle kits to boost local production. The policy shift aims to increase domestic parts sourcing and sector employment.

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Minister of Trade and Industry of South Africa, Parks Tau, attends the launch of the new Toyota Hilux model, which is part of a R10 billion investment in Durban, South Africa, July 16, 2026. REUTERS/Rogan Ward

South Africa will end policy support for imported vehicle assembly kits, pushing automakers to raise local content to 60% by 2035. The overhaul targets semi knocked-down operations to curb duty-free imports and boost domestic manufacturing. The shift aims to double sector employment and lift the country's share of global vehicle output to 1%.

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