Trade Minister Parks Tau said South Africa will tighten auto-manufacturing rules and phase out assembly from imported vehicle component kits. The ministry will stop providing policy support for any newly established semi-knocked-down (SKD) assembly operations and will refine the legal definition for fully knocked-down (CKD) assembly manufacturing. Tau said SKD operations typically create fewer jobs and are used to increase tax efficiency; local automakers have long lobbied for policy change. The

2026-10-15

Trade Minister Parks Tau said South Africa will tighten auto-manufacturing rules and phase out assembly from imported vehicle component kits. The ministry will stop providing policy support for any newly established semi-knocked-down (SKD) assembly operations and will refine the legal definition for fully knocked-down (CKD) assembly manufacturing. Tau said SKD operations typically create fewer jobs and are used to increase tax efficiency; local automakers have long lobbied for policy change. The trade ministry will also open a formal investigation into the light commercial vehicle sector, including vans and pickups, saying the ladder-frame LCV subsegment’s strategic competitiveness warrants review.