Grey vehicle imports costing the fiscus R3.8bn a year, says Naamsa
The National Association of Automobile Manufacturers of South Africa (Naamsa) says it is “deeply concerned” about the impact of grey imports on the South African automotive industry.
Grey imports are typically, but not exclusively, used vehicles sold outside the distribution channels of the official importer and distributor, or vehicle manufacturer.
Grey imports are popular in African countries which do not have their own vehicle manufacturing industries, as such imports typically undermine the vehicle assembly value chain.
The importation of used vehicles into South Africa is largely illegal, in order to protect the local vehicle manufacturing industry.
Naamsa estimates that about 300 000 vehicles of the 12.7-million vehicles on South African roads are illegally imported vehicles.
The number of grey imports is growing at 30 000 vehicles a year, notes the association.
“Without doubt, grey imports displace new car sales. Based on the suite of taxes applicable to new car sales locally, Naamsa estimates that this is costing
the fiscus R3.8-billion a year.
“Grey imports have a negative impact on the automotive ecosystem, because they
rob the fiscus of much-needed tax revenue. They hurt job creation, they aid criminal activity and they undermine road safety initiatives,” says Naamsa.
“To put it into perspective, the monthly average new-vehicle market [in South Africa] for 2020 is 28 500 units. Grey imports represent an extra month of sales a year, which represents 7.5% of the total market – which would make it the third largest brand in South Africa by volume.”
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