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components. Local economies of scale are limited, and many component manufacturers face downward price pressure from global supply chains. Despite these headwinds, stainless steel remains a pillar of opportunity under the SAAM2035 framework especially as EV and hydrogen vehicle assembly gains traction. The Tariff Disruption South Africa’s automotive sector is now under fresh pressure from outside: escalating U.S. tariffs on vehicles and auto parts. In early 2025, the U.S. imposed a 25% tariff on all South African automotive imports. That jumped to 30% in August. The result has been immediate and brutal. Vehicle exports to the U.S., one of SA’s biggest markets has plunged by over 80% in April and May 2025. Industry analysts warn that up to 100 000 jobs could be lost if the tariffs persist, many of them in auto component manufacturing, logistics, and related sectors. The rand has weakened, and investor confidence has wobbled, as key negotiations remain unresolved.
With U.S. access shrinking, the industry is scrambling to redirect output to Europe, the Middle East, and intra- African trade partners under AfCFTA but that takes time, investment, and compliance with multiple rules of origin standards. Stainless in EVs and Hydrogen Vehicles: The Next Wave The rise of electric and hydrogen vehicles is reshaping material demand in real time. Stainless steel’s role is expanding and is now playing into battery fire safety, hydrogen containment, crash durability, and fast-charging infrastructure. EVs increasingly rely on stainless battery enclosures, cooling system piping, and lightweight structures.
What is SAAM2035? The South African Automotive Masterplan 2021–2035 (SAAM2035) is the government’s long-term strategy to grow and transform the automotive industry. It targets a major shift toward higher local value-add—aiming for 60% local content in vehicles, expanded production volumes, doubled sector employment, and stronger global exports. A key focus is building a more inclusive supply chain by supporting Black-owned businesses and deepening local manufacturing capabilities.
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Issue 3 – 2025
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