SATMC on tyre dumping and Goodyear’s likely plant closure

The closure of the Goodyear tyre manufacturing plant in Kariega is most likely related to the dumping of illegal tyres in South Africa.

While Goodyear declined to comment on the issue, several industry commentators feel that the dumping of cheap tyres in South Africa by at least 4 countries from the Far East has contributed to the factory’s decline and imminent closure.

Even with dumping duties put in place during 2024, loopholes still exist that lead to cheaper tyres that do not necessarily comply with the required standards, ending up on vehicles. This is the view of Nduduzo Chala, the Managing Executive of the South African Tyres Manufacturers Conference (SATMC).

The SATMC represents the four local tyre manufacturers: Bridgestone, Continental, Goodyear and Sumitomo Rubber.

“It is a sad reality to happen, but we have to allow Goodyear to go through its processes as a company. Hard work goes into the closure of loopholes for the dumping of tyres between the SATMC and the relevant government institutions,” says Nduduzo.

He says that local tyre manufacturers are experiencing a decline in the demand for their tyres as cheaper tyres from the East become more popular. “We trust legislation will assist in stopping this problem to protect jobs in the local tyre manufacturing industry,” Nduduzo says.

Goodyear has not elaborated on its original statement, saying that although it is only the manufacturing that will be halted, the sale and distribution of tyres from the brand will continue through its Hi-Q and other tyre outlets.

In an official statement, it says it’s transforming its go-to-market strategy in the Europe, Middle East and Africa region to optimise its footprint and portfolio.

“As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management functions.

Goodyear has been in South Africa since 1918, and it began local manufacturing in 1947. It manufactured a wide range of tyres locally, including a unique Off-The-Road (OTR) bias tyre, used in heavy-duty applications like mining and construction vehicles. Its Kariega plant was the sole producer of this tyre.

A wealth of information in naamsa Trade Manual

naamsa | The Automotive Business Council recently launched its new Trade Manual with over 100 pages of information on South Africa’s performance as a vehicle market and vehicle exporter.

This 140-page publication is a rich source of information on the South African automotive industry, packed with facts, statistics and general insights on everything, from the 155 countries to which we export vehicles and components and their value, to precisely what goes where.

Mikel Mabasa, naamsa CEO, says the publishing of the manual kicks off the centenary celebrations of the automotive industry in South Africa, dating back to 1924 when the first Model T Fords were locally produced in Gqeberha.

Some interesting stats

Exports: During 2023, the export value of vehicles and automotive components increased by R43.5 billion, or 19.1%, from R227.3 billion in 2022 to a record R270.8 billion in 2023, comprising 14.7% of total South African exports.

Vehicle exports increased by 47 809 units to a record 399 594 units in 2023, up from the 351 785 units exported in 2022, while the vehicle export value increased by R46.9 billion from R157 billion in 2022 to a record R203.9 billion in 2023.

Destinations: The industry’s impressive export performance also includes record exports to all major regions, including the EU, Africa, SADC and North America.

Choices: In 2023, there were no fewer than 46 passenger car brands and 2 172 model derivatives, the greatest selection of market-size ratio found globally. Similarly, in the light commercial vehicle segment, for the same period, there were 23 brands, with 525 model derivatives to choose from.

EVs: Sales of battery electric vehicles increased to 929 units in 2023, up from 502 units in 2022, but the segment remained stymied by the lack of more affordable models. NEV sales share, by 21 brands, as a percentage of total new vehicle sales, breached the 1% mark in 2023, increasing to 1.45%, up from 0.88% in 2022.

Catalytic converters: It remains the top automotive component exported from South Africa and comprised R25.9 billion, or 44.1% of total automotive component exports, followed by engine parts, tyres and transmission shafts and cranks.

Imports: Light vehicle imports declined by 27 966 units, or 8.6%, from 323 783 units in 2022 to 295 817 units in 2023 in line with a weak domestic new-vehicle market. The top country of origin, in terms of volume, for passenger cars and LCVs imported into South Africa in 2023, was India, with 157 326 vehicles, accounting for 53.2% of the total number of light vehicles imported. China consolidated its second position, accounting for 13.3%.

Investment: The seven original equipment manufacturers (OEMs), with technology-embedded investment, came to R7.3 billion in 2024. The OEMs are Toyota, Volkswagen, Isuzu, BMW, Mercedes-Benz, Ford and Nissan.

The EU: Vehicle and automotive component exports to the EU increased by R9.6 billion, or 6.5%, from R147.1 billion in 2023 to R156.7 billion in 2024, mainly owing to a rise in the value of vehicle exports to the region. Automotive imports from the EU decreased by R900 million, or 0.7%, from R139.4 billion in 2023 to R138.5 billion in 2024, in line with lower original equipment component imports from the region.

Agreements: The EU, Africa and US-Mexico-Canada Agreement (USMCA) were the regions with a trade surplus in 2024. The largest deficit was recorded with the 48-country Asia region, including countries such as China, Japan, India and Thailand. Germany: The home to BMW, Volkswagen and Mercedes-Benz remained the South African automotive industry’s biggest single trading country partner (exports and imports of vehicles and components combined) in 2024. Despite decreasing from the R161.1 billion in 2023, total automotive trade between the two countries still reached a significant R138.6 billion in 2024.

Optimism all round about good sales figures for May

Passenger vehicle sales have increased by a whopping 30% in May, a figure that has naamsa | The Automotive Business Council and NADA celebrating in the aisles. 

If one accounts for other categories – light commercials, trucks and buses – the overall increase in sales is only 22%, but that is still a major jump from the same month in 2024.

Naamsa CEO, Mikel Mabasa, says the total new-vehicle sales reached 45 308 units, reflecting an increase of 8 169 units, or a substantial gain of 22.0%, from the 37 139 vehicles sold in May 2024. He attributed the growth to relatively stable economic fundamentals earlier in the year.

Overall, of the total reported industry sales of 45 308 vehicles, an estimated 40,062 units, or 88.4%, represented dealer sales. An estimated 6.8% were sales to the vehicle rental industry, 3.0% to industry corporate fleets and 1.8% to government.

The May 2025 new passenger car market, at 31 741 units, registered an increase of 7 322 cars, or a gain of 30.0%, compared to the 24 419 new cars sold in May 2024. Car rental sales accounted for an unusually large 8.5% of new passenger vehicle sales during the month.

See also: Hyundai hits 3-year high! SA’s new-vehicle sales in May 2025

See also: Tiggo 4 Pro hits all-time high! SA passenger-car sales for May 2025

Domestic sales of new light commercial vehicles, bakkies and mini-buses, at 10 938 units during May 2025, recorded an increase of 601 units, or a gain of 5.8%, from the 10 337 units sold in May 2024.

See also: Navara back in top 5! SA’s best-selling bakkies in May 2025

Sales in the medium and heavy truck segments also performed well. In May 2025, 660 medium commercial vehicles were sold — an increase of 122 units, or 22.7%, compared to the 538 units sold in May 2024. Meanwhile, heavy trucks and buses recorded 1 969 units, an increase of 124 vehicles, or 6.7%, from the 1 845 units sold in the same month last year.

However, not all indicators were positive 

Vehicle export sales decreased by 5 165 units, or 14.6%, to 30 112 units in May 2025, compared to 35 277 vehicles exported in May 2024. Nonetheless, vehicle exports for the year to date were still 1.4% ahead of the same period last year.

The decrease in exports during the month was attributed to a major exporting vehicle manufacturer halting production from mid-April to mid-May to complete the remaining 40% of the required installations and upgrades in its body shop, paint shop and final assembly areas in preparation for the introduction of a new model. (Hint: It is Volkswagen who is preparing to build a small SUV alongside its Polo and Polo Vivo in Kariega).

Mabasa adds that the fragility of global demand, in the face of rising protectionism, is increasing and highlights the importance of maintaining export competitiveness through policy alignment, market diversification and value chain resilience.

‘Consumer confidence translates in improvement’

In response to the naamsa figures, Brandon Cohen, Chairperson of the National Automobile Dealers’ Association of South Africa (NADA), said it was gratifying to see that consumer confidence, boosted by a further interest rate cut and positive geopolitical developments, translated into a 22% improvement in retail new vehicle sales in May.

“Sales were relatively slow during the first half of May but increased significantly in the latter half following President Ramaphosa’s meeting with US President Donald Trump, the finalisation of the national budget and the interest rate announcement,” Cohen noted.

NADA also highlighted that the substantial rise in overall sales was primarily driven by the 30% increase in passenger car sales. “In fact, actual market activity may have been even stronger than the reported total of 45 308 vehicles sold in May, as only 12 of the 24 Chinese brands currently available in South Africa submitted sales data,” Cohen added.

Aspirational brands in demand in pre-owned market

The used vehicle market also showed interesting trends, according to Thembinkosi Pantsi, Vice-Chairperson of NADA.

“May was a fascinating month for the pre-owned segment of the retail motor business. Many customers opted for pre-owned models from aspirational brands rather than investing in new vehicles. This trend has been gaining traction in recent months, with some buyers even showing interest in premium-brand cars that are between seven and ten years old,” he explained.

“We’ve also observed some customers choosing pre-owned Chinese models rather than new ones, indicating a desire to test the reliability and after-sales support of these vehicles before committing to a new purchase.”

Pantsi concluded by highlighting a noticeable increase in foot traffic: “We saw an increase in ‘walk-ins’ during May compared to previous months. Many of these customers had already conducted research on online platforms and arrived well-informed. Overall, May was a very positive trading month.”

• In April 2025, naamsa’s new-vehicle sales figures showed a total of 42 401 units sold, an 11.9% increase compared to April 2024. This was driven by a 16.9% rise in passenger car sales to 30 101 units.
• In March 2025, naamsa’s figures recorded 49 493 units sold, a 12.5% increase compared to March 2024. This growth was attributed to a 25.3% jump in passenger car sales to 33 447 units.