---
title: "South African Car Exports Plunge on Stricter EU Emission"
description: "South African car exports almost halved, partly due to a slowdown in demand in Europe because of stricter emission rules and competition from cheaper electric vehicles from China."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-11-01-south-african-car-exports-plunge-on-stricter-eu-emission/"
published: "2024-11-01T18:00:45"
updated: "2024-11-01T18:00:46"
lang: "en-ZA"
word_count: 121
---

# South African Car Exports Plunge on Stricter EU Emission

> South African car exports almost halved, partly due to a slowdown in demand in Europe because of stricter emission rules and competition from cheaper electric vehicles from China.

By Bloomberg · Published 1 November 2024, 20:00 SAST · Updated 1 November 2024, 20:00 SAST

## Key points
- In a dramatic October twist, South Africa's car exports plummeted by 42.6%, but Naamsa is holding onto hope, banking on a monetary policy makeover and EU tariffs on Chinese EVs to rev up the export engine once more.
- South Africa's car exports plummeted 42.6% in October, totaling 17,324 units, according to Naamsa data.
- The EU, South Africa's largest car export market, is implementing stricter CO2 emission regulations.
- Naamsa remains hopeful for a rebound, citing potential benefits from easing monetary policies in key markets.
- Recent EU tariffs on Chinese electric vehicles may further boost South African exports in the near future.

## Content

Exports fell 42.6% in October to 17,324 from a year earlier, according to the automotive business council, or Naamsa, data.

The European Union, South Africa’s biggest car export market, has been [phasing in](https://www.consilium.europa.eu/en/press/press-releases/2024/04/12/euro-7-council-adopts-new-rules-on-emission-limits-for-cars-vans-and-trucks/) stricter rules to reduce the amount of carbon dioxide vehicles are allowed to release.

Still, Naamsa is optimistic that shipments could improve. “Easing of monetary policy in key export markets could see the vehicle export momentum turn positive again over the medium term,” it said.

The European Central Bank lowered interest rates for the [third time this year](https://www.bloomberg.com/news/articles/2024-10-17/ecb-cuts-rates-for-third-time-to-prop-up-weakening-economy) in September.

Exports may also get a thrust from the EU imposing higher tariffs on EVs from China this week.

Read More: [EU Imposes Tariffs on China EVs, Risking Retaliation](https://www.bloomberg.com/news/articles/2024-10-29/eu-imposes-tariffs-on-chinese-ev-imports-as-high-as-45)