Workers on the automobile production line at the Toyota Motor Corp. manufacturing plant in Durban, South Africa, on Tuesday, Aug. 16, 2022. Floods earlier in the year caused extensive damage to the Toyota plant, one of the country's biggest car manufacturers. Photographer: Waldo Swiegers/Bloomberg via Getty Images The European Union, South Africa’s biggest car export market, has been phasing in 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 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