Starting July 2025, South Africa is set to reduce vehicle import duties — a move that could reshape the country’s automotive landscape. The policy shift aims to make imported cars more affordable, promote greener transport options, and stimulate healthy competition between local and global automakers.
What Are the New Import Duty Rates?
The government has officially announced that car import tax rates will be reduced across different vehicle categories. Below is a table highlighting the changes.
| Vehicle Type | Current Import Duty | New Import Duty (July 2025) |
|---|---|---|
| Passenger vehicles | 25% | 18% |
| Light commercial vehicles | 20% | 14% |
| Electric vehicles (EVs) | 18% | 10% |
| Hybrid vehicles | 20% | 12% |
The revised South Africa vehicle import duty 2025 structure is designed to lower car prices, particularly for eco-friendly vehicles.
Why Is South Africa Reducing Vehicle Import Duties?
The government’s decision to cut import duties is driven by several key objectives:
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Lower vehicle costs for consumers, making car ownership more accessible
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Encouragement of cleaner technology through lower tariffs on EVs and hybrids
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Boosting market competitiveness, ensuring local manufacturers continue to innovate
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Economic growth, stimulating related industries like auto parts, servicing, and financing
What Could This Mean for Car Buyers?
If you’re considering buying an imported vehicle, the timing couldn’t be better. Here’s what to expect:
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Lower prices on imported vehicles due to reduced car import tax
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Wider choice of vehicle models and brands in the market
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Greater availability of EVs and hybrids, with the largest duty reductions applied to these categories
Impact on the Local Automotive Industry
The adjustment to South Africa vehicle import duty 2025 is a double-edged sword for local manufacturers:
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Increased competition from international brands could put pressure on local firms
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Need for innovation and cost-efficiency to maintain market share
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Opportunities for collaboration with global automakers or expansion into export markets
FAQs
When do the new import duty rates come into effect?
The reduced car import tax rates will apply to vehicles imported on or after 1 July 2025.
Will the new tariff rules apply to used cars as well?
Yes, the new tariff rules will apply to both new and used vehicle imports. However, used vehicles will still need to meet additional compliance and safety standards.
How will this affect electric vehicle prices?
With import duties on EVs dropping from 18% to 10%, the cost of imported electric vehicles is expected to fall significantly, encouraging greater adoption of green technology.
Could this change impact local automotive jobs?
There are concerns about job losses, but the government has promised support measures — including incentives for local manufacturers to innovate, modernize, and remain competitive.
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