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South Africa Secures Pledges From Chinese and Indian Carmakers to Shift SKD to CKD

Officials say targeted support will help protect jobs during a period of rising imports, tariff uncertainty and costly EV transitions.

Overview

  • Trade Minister Parks Tau said firms with SKD operations in South Africa have committed to move to full CKD manufacturing following engagements in China and India.
  • The government is discussing support measures with multinational carmakers, including Toyota and Ford, as well as their suppliers to safeguard the sector’s future.
  • BAIC currently assembles the Beijing X55 on an SKD line in Gqeberha, with the plant configured for a future conversion to CKD.
  • Mahindra assembles SKD pickups in Durban and is running a feasibility study with the Industrial Development Corporation on a full-scale manufacturing plant.
  • The share of CKD-assembled vehicles sold locally fell from 56% to 33% over 19 years, and industry leaders warn of de‑industrialisation and the risk of ceding Africa’s production lead to Morocco.