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.