Where South Africa’s Favorite Cars Are Made

 
The majority of the vehicles favored by South Africans are produced domestically, while others are imported from countries like India and China. When it comes to car purchases, elements such as brand, model, and body type significantly influence consumer choices. However, the country of manufacture often goes unnoticed, even though it plays a vital role in pricing.
According to Naamsa (The Automotive Business Council), import taxes can account for 18% to 42% of the price of a new vehicle. These taxes include:
Value Added Tax (VAT): 15%
Ad Valorem Tax: Calculated per vehicle, capped at 30%
CO2 Emissions Tax: 2.5% to 6%
Import Duties: 25% (18% for vehicles imported from the EU)
As a result, cars manufactured locally avoid a substantial portion of these fees, making them more affordable compared to similar models that are imported.
For instance, the locally-produced Ford Ranger starts at R522,600 in South Africa. In contrast, the cheapest Ranger Double Cab in the United Kingdom, a key export market for Ford South Africa, is priced at £36,690 (including VAT), translating to approximately R852,000 at current exchange rates. While this comparison isn’t entirely straightforward due to differences in tax structures and vehicle specifications, it underscores the advantages of local production.
Sourcing Cars from Lower-Cost Countries
When automakers lack domestic manufacturing capabilities, they typically source vehicles from countries with lower labor and operational costs, such as India or China. This strategy allows them to reduce production costs, thereby minimizing import taxes and enabling more competitive pricing.
This situation contributed to Mazda’s decision to discontinue the BT-50 in South Africa earlier this year. The latest version was imported from Thailand, leading to high import taxes that resulted in pricing that could not compete with local models like the Toyota Hilux, Ford Ranger, and Isuzu D-Max—South Africa’s three best-selling bakkies. In 2023, the BT-50 sold just 69 units, whereas the Hilux, Ranger, and D-Max had sales of 37,382, 24,618, and 18,962, respectively. Consequently, the Mazda double cab was phased out just three years after its introduction in 2021.
Craig Roberts, Managing Director of Mazda South Africa, stated “The South African light commercial vehicle (LCV) market, especially the double-cab segment, is well-established and highly competitive, with locally produced brands and models holding a strong presence. Given these conditions and the tough landscape for imported vehicles to compete with local products, Mazda SA has made the challenging decision to step back.” While often overlooked by consumers, the country of origin can significantly influence purchasing decisions.
Top 10 Best-Selling Cars in South Africa and Their Countries of Origin
Below is a list of South Africa’s best-selling cars as of July, along with their manufacturing locations and starting prices:
Toyota Hilux
Built in: Durban, South Africa
Starting price: R361,700
VW Polo Vivo
Built in: Kariega, South Africa
Starting price: R266,600
Ford Ranger
Built in: Silverton, South Africa
Starting price: R514,800
Isuzu D-Max
Built in: Gqeberha, South Africa
Starting price: R447,900
Toyota Corolla Cross
Built in: Durban, South Africa
Starting price: R408,400
Hyundai Grand i10
Built in: Chennai, India
Starting price: R224,900
Toyota Starlet
Built in: Hansalpur Becharaji, India
Starting price: R252,100
VW Polo
Built in: Kariega, South Africa
Starting price: R357,500
Chery Tiggo 4 Pro
Built in: Wuhu, China
Starting price: R279,900
Nissan Magnite
Built in: Chennai, India
Starting price: R240,000