When is a crime not considered a crime? According to Kia South Africa MD Gary Scott, it’s when the law turns a blind eye. Frankly, that could apply to almost every conceivable criminal activity in South Africa.
Scott, though, is specifically concerned with the importation of used vehicles. And he has good news. He’s sensing the first stirrings of concerted resistance to the scourge, which costs the fiscus up to R8bn annually in lost duties.
Unless you’re a citizen returning from overseas, a foreign diplomat or a collector of classic cars, the law is very clear: you can’t bring a used vehicle into South Africa. It’s illegal. Finish and klaar!
Really? In 2020, trade, industry & competition minister Ebrahim Patel reckoned that 35,000 used vehicles were being smuggled into South Africa each year. By 2022, this had risen to 55,000. By some estimates, the total number on South Africa roads is nearly 500,000 — almost the equivalent of a full year of new-vehicle sales (2022: 529,562).
But now Scott says government and private sector bodies are talking of co-ordinating their efforts. How this talk will translate into real action remains to be seen, but it’s a start.
Many of the illegal imports enter South Africa through Durban harbour, ostensibly for onward transfer to Lesotho, Swaziland, Mozambique and other neighbouring countries. But few actually get there; most are absorbed into the cheap local second-hand market. Likewise, vehicles imported temporarily by visitors to South Africa from neighbours are not returned to their countries of origin. Many of these grey imports are unsafe.
The government needs to be at the centre of this. Some simple strokes of the pen from Patel would make a difference
— Gary Scott
The problem, says Scott, who is also vice-president of Naamsa, the local motor industry association representing vehicle manufacturers and importers, is that bodies involved in countering this trade — including the police, customs, the motor industry, the South African Revenue Service and several government departments — have been pulling in different directions. “Everyone works in isolation,” he says.
If the new initiative can push them in the same direction, that will be half the battle. For example, police stopping vehicles for random safety checks could also ask for papers confirming their history. Dedicated illegal-import teams would be even better. With specialised intelligence, they could make a big hole in the trade. As things stand, it’s barely policed. For smugglers, “it doesn’t feel like a criminal offence because it’s not treated as one”, he says.
Patel, for all his stated regrets about used car smuggling and demands for investigations, holds the key to the solution, says Scott. He and his department must manage the paperwork and legislation required to drive the process. “The government needs to be at the centre of this. Some simple strokes of the pen from Patel would make a difference.”
Painful experience tells us not to expect the government to leap into action. Its policy for electric vehicles (EVs) is already two years overdue, forcing local vehicle manufacturers to take investment decisions based on hope rather than firm expectations.
Kia itself has no immediate plans to introduce its range of EVs to South Africa despite their success in other countries. Kia South Africa celebrates its 25th birthday this year, having been founded in 1998. The brand is one of the undoubted success stories of the past few years, having carved out a significant slice of the market. It has done so by consistently positioning itself as a premium mid-market brand.
Even the quarter-century landmark won’t change the model: three or four more dealers, the introduction of several facelifted versions of existing models, but no grand fanfare. That may come in 2025, with the planned introduction of a double-cab bakkie that has been years in the planning.
Given Kia’s steady progress, and that of sister company Hyundai, Scott is watching the growth of Chinese brands with interest. In some respects, they are copying the Korean development model in South Africa. A couple have made big strides in market share. However, as other brands have learnt to their cost, retaining market share is often harder than winning it. The measure of success is not winning a first-time customer but persuading them to buy the brand again and again.
For new brands trying to make their way, there’s also a fine line between value for money and cheapness, he adds. “Once you are seen as cheap, you will always be seen as cheap. There is no short cut to success.”
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