Nissan Elgrand has been a long time grey market import favourite from Japan. Image: favcars.com.
The Legacy Motor Group has called for greater restrictions on the importation of what is calls “unfit European vehicles” into Africa and indeed, South Africa.
Echoing sentiments made by the National Association of Automobile Manufacturers of South Africa (Naamsa) almost three years ago, the group’s chairman, Mpho Dipela, said while the majority of the continent’s assembled vehicles principally originate from South Africa and Morocco, imports continue to dominate other nations.
Which he describes as being of “poor quality” and in contravention of attempts to reduce the continent’s carbon footprint.
In 2020, Naamsa remarked that an estimated 300 000 grey import market vehicles, mostly from Japan, frequent South Africa’s roads at a loss of R3.8-billion per annum to the country’s tax coffers.
“Grey imports have a negative impact on the automotive ecosystem because they rob the fiscus of the much needed tax revenue; they hurt job creation; they aid criminal activity; and undermine road safety initiatives,” Naamsa said at the time.
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“To put into perspective, the monthly average new vehicle market for 2020 is 28 500 units. Grey imports represent an extra months sales per annum, which represents 7.5% of total market and would be the third largest brand in South Africa by volume”.
In making the announcement, Dipela said that around 40% of grey market vehicles are to be found in Africa, with around 80% being unable to adhere to even the most basic emissions regulations.
As a reminder, South Africa’s current emissions level is equal to Euro II standards that become obsolete on the Old Continent at the turn of century.
At present, automakers in Europe have to adhere to Euro 6d emissions requirements, which will be succeeded by the largely electric vehicle favouring Euro 7 in 2025.
“At a recent Intra-Africa Trade Fair, Alec Erwin, the former South African Minister of Public Enterprises, thus warned that dumping old vehicles in Africa will impede progress in addressing climate change and result in the failed agenda of consecutive United Nations climate change conferences or COPs,” Dipela continued.
“Africa needs to ensure that our market does not become saturated with these vehicles by implementing stronger policies to ensure that imported vehicles are better regulated, and by preventing countries from exporting cars with failing safety standards.”
Most recently, Kenya become one of the first African countries to ban the sales of vehicles older than ten years, while also dropping import tax on electric vehicles to 10% in addition to installing more EV chargers to reduce its carbon footprint.
Accordingly, the country’s EV uptake has climbed 132% to 502 units sold last year, a feat Dipela said shouldn’t be looked down upon by the South African government.
“Kenya is ahead of many African peers. Their country is leading the way in the transition to e-mobility, making notable investments in electric buses, taxi cabs, motorcycles, and charging stations – and setting the example for the continent,” he remarked.
“By following Kenya’s example and adopting similar policies, South Africa could help to pave the way for electrification of the transport sector in sub-Saharan Africa and lead the charge towards a cleaner and more sustainable future for its citizens.”
He concluded by saying that, “European governments and automotive industries should be held to account in ensuring that appropriate systems are put in place to recollect and recycle vehicles at their ultimate end of life.
“For African automotive industries to thrive, they need preferential access to both domestic and regional markets to boost sales, with further support under the African Continental Free Trade Agreement.”
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