BMW Group reaffirms commitment to South Africa amidst US export tariffs

BMW Group South Africa has reaffirmed its long-term confidence in South Africa as a key manufacturing hub and a partner in national development amidst the looming 30% export tariffs by the country’s second largest trading partner, the United States.

This comes as the BMW Group Plant Rosslyn is set to achieve its highest annual production volume in 52 years, reflecting strong global demand and the BMW Group’s confidence in local manufacturing capabilities.

This performance is underpinned by continuous investment, notably the R4.2 billion allocated for the electrification of BMW Group Plant Rosslyn. 

BMW Group South Africa’s strong Q2 performance indicates its leadership in the premium segment, with customer demand and its electrification strategy continuing to drive production of the new BMW X3 at BMW Group Plant Rosslyn.

To date, Plant Rosslyn is the only plant that produces the BMW X3 plug-in hybrid (PHEV) for the entire world.

“The achievements at BMW Group Plant Rosslyn, especially its path towards record production volumes and its crucial role in our global BMW X3 production, are a source of great pride,” said Milan Nedeljković, chairman of BMW South Africa and member of the board of management of BMW AG responsible for production.

“Our significant investment in electrification here demonstrates our long-term belief in South Africa as a key manufacturing hub within our global network, driving innovation, skills and sustainable growth for the region.”

Plant Rosslyn hosted President Cyril Ramaphosa as part of the Group’s broader engagements to highlight the strong and active partnership between the BMW Group and the government in advancing industrial growth and economic empowerment. 

During the visit, Ramaphosa interacted with the plant assembly staff on the production line, gaining first-hand insight into daily operations, and later addressed several hundred production staff, acknowledging their dedication. 

Discussions during the visit highlighted BMW Group South Africa’s industry leadership, showcasing its role as a premium automotive manufacturer through innovative and sustainable practices, and emphasising its substantial investment in South Africa’s economic development. 

The dialogue focused on the tangible benefits of BMW Group Plant Rosslyn, specifically its role in advancing job creation, driving essential skills development, and facilitating technology transfer within the local market. 

“This engagement at Plant Rosslyn reaffirms the great partnership between the BMW Group and South Africa,” said Daniel Bester, director of BMW Group Plant Rosslyn. 

“Our plant continues to be a beacon of manufacturing excellence, setting new production records and driving innovation. We remain committed to contributing to South Africa’s economic growth, actively working towards a shared, prosperous future.”

A reflection of its ongoing dedication to national transformation, BMW Group South Africa achieved Level 1 B-BBEE status in the 2024 audit, highlighting the company’s drive towards an inclusive and equitable workplace, and reflecting continuous, focused efforts and collaboration.

Beyond manufacturing, BMW Group South Africa’s has generated more than 3 500 youth work experiences since 2022 through its partnership with the Youth Employment Services (YES) programme.

Ramaphosa said Plant Rosslyn demonstrated BMW Group’s commitment to the South African economy, to supporting industrial development, to national empowerment objectives and to driving innovation in the sector.

He said incentivising electric vehicle (EV) production for export and at the same time supporting the growth of the local EV market was a government imperative.

“The global shift to clean vehicles presents opportunities for the local component manufacturing sector, whose focus has been on Internal Combustion Engine components. With our significant reserves of critical minerals, we must become a hub for processing and beneficiation,” Ramaphosa said.

“We are finalising targeted incentives for battery cell localisation, EV component manufacture, clean mobility research and design, and critical mineral beneficiation. The recent announcements on tariffs by the United States, an important market for our vehicle exports, further underscores the need to diversify our export base and accelerate domestic value creation.”

BUSINESS REPORT