By Lesedi Sibiya-Diplomatic Insider 

The Motor Industry Staff Association (MISA) have formally rejected the proposal drafted by the Department of Trade, Industry and Competition (DTIC) to impose a 50% import tariff on Chinese and Indian vehicle brands, and have warned that these proposed tariffs will affect a number of jobs. 

MISA’s Communication Manager Sonja Carstens has expressed that within the Union which represents 300,000 people, had not been consulted before the proposal had been presented to Parliament. 

Carstens expressed that within the next two days the Union will submit their own proposal to the DTIC. Carstens also highlighted that over the past two years the sector had been experiencing a slump with tyre manufacturers and parts manufacturers closing down.

 “That’s changed due to the influx of Indian and Chinese vehicle brands. We’ve seen record vehicle sales in October, November, December and even January, and that’s mainly to the Chinese and Indian brands” said Cartens. 

Cartens highlighted that the number of dealerships had declined to 41 since 2020, however employment in the sector has grown over the past three years, with industry employment increasing from 305,000 to 309,000 workers by July last year.

 Carstens also criticised the South African Automotive MasterPlan (SAAM) as it places more emphasis and urgency on manufacturing while neglecting the retail segment. 

“If we start using tariffs, we are punishing the Chinese and Indian brands for importing vehicles into our country. We are saying that we are very much for local investment, we want to see them investing” said Carstens. 

Carstens also noted that since the African Growth and Opportunity Act (AGOA) has been renewed she emphasised the importance of keeping relations with America very amicable. 

“We cannot exclude the economy of the US, it’s very important for us. We would like to see the government take a softer approach to the US and do everything within their means to rectify that relationship” said Carstens