#WeAreNAACAM: The National Association of Automotive Component and Allied Manufacturers (NAACAM) sees potential for growth despite new US import tariffs impacting South Africa’s automotive exports.
Executive director Renai Moothilal notes that while the immediate price burden will affect US importers, causing inflation in the US due to a 12 to 15-month supply chain adjustment, South Africa can leverage this period to explore new markets and strengthen local production. Last year, South Africa exported R24 billion in vehicles and R4.3 billion in components to the US, making it the second-largest component export destination after Germany.
NAACAM advocates for a three-pronged approach: negotiating beneficial bilateral trade relations with the US, seeking alternative export markets, and protecting the domestic market from product dumping. Moothilal also sees this as a chance to enhance the Automotive Production and Development Programme, incentivising higher localisation rates. He notes that a 5% increase in localisation by South African OEMs could boost component production by over R25 billion, far surpassing US export values. Read the full article via Engineering News here: Beware dumping as Trump builds tariff wall; tariff impact to be felt in the US first – Naacam