By Nqobile Dludla

JOHANNESBURG, April 10 (Reuters) - South Africa is

considering offering additional incentives to automakers to help

cushion the impact of U.S. President Donald Trump's tariffs on

cars, Trade, Industry and Competition Minister Parks Tau said on

Thursday.

"What we're currently considering is the possibility of

expanding the automotive industry production plan so that we're

able to mitigate the impact in our industry," Tau said in an

interview with radio broadcaster Power FM.

"We're currently modelling what the potential package could

be for the auto sector, but also for other sectors so that we

can do it within the means of the country to buffer the impact."

The Automotive Production and Development Programme is an

incentive programme that helps drive investment, innovation and

job creation in the automotive industry. It offers various

rebates and refunds on customs duties and manufacturers also

receive incentives based on their production volumes.

The National Association of Automobile Manufacturers of

South Africa has expressed concern over the 25% U.S. import

tariff on cars, saying that it cannot be absorbed by

manufacturers, which will result in additional costs for U.S.

consumers and a reduced choice of South African-produced brands.

The U.S. is the third-largest destination for South African

automotive exports, with approximately 35 billion rand ($1.8

billion) worth of vehicles shipped in 2024, accounting for 6.5%

of total vehicle exports in 2024.

South African-based manufacturing plants operated by BMW

, Ford, Isuzu ( ISUZF ), Mercedes-Benz,

Nissan ( NSANF ) and Toyota ( TM ) - which produce vehicles for

global markets, including the U.S. - will be severely impacted

NAAMSA added.

($1 = 19.3878 rand)