South Africa is facing a dumping crisis, affecting products ranging from steel and poultry to construction materials and frozen potato chips. The tyre sector is among the industries most persistently affected by dumping.
In January 2022, the International Trade Administration Commission of South Africa (ITAC) launched an investigation into the alleged dumping of new pneumatic tyres primarily from China. Dumping, the sale of a product for export at much less than its normal value often artificially, is not technically illegal under World Trade Organisation (WTO) rules unless it can be proven to “cause material injury” to the importing country’s industry.
The total replacement/aftermarket tyre sales in South Africa are approximately 12 million units. We have seen sales volumes of locally manufactured products decline from 7,5 mil in 2016 to 5 mil in 2025, eradicating local producers market share from 60% in 2016 to under 40% in 2025, according to industry data (Lightstone). It could be argued that the closure of Goodyear’s Kariega in 2025 effectively ending Goodyear’s presence in South Africa, as well as a general decline in demand in related industries, amounts to “material injury”.
Following the 2022 investigation, DTIC approved imposition of dumping duties on Chinese products. However, a follow-up investigation in 2024 found that circumvention of the final duties was occurring through country-hopping via Cambodia, Thailand and Vietnam. The latter investigation lapsed and did not result into closing the circumvention avenue of country hopping, leaving local tyre producers exposed to unfair trade.
South Africa’s vulnerabilities
Tackling dumping practices is a delicate task, given South Africa’s aggressive drive to attract foreign investment, which may inadvertently leave the economy vulnerable to predatory pricing. Furthermore, the country’s influential position as a gateway to the rest of the continent makes it a prime target.
The role of consumers
While South Africa implements corrective trade controls through appropriate duties and trade limits, individual and commercial consumers must also consider the impact of their buying decisions. In the short term, consumers may enjoy a bargain, but quality issues may soon arise. This then leads to higher long-term costs.
Secondly, lower-quality products compromise health and safety standards, putting lives at risk. When buying dumped products, consumers usually have no recourse when things go wrong.
Finally, dumping is designed to syphon market share. When importers gain dominance due to the erosion of local capacity, prices are inevitably raised again.
Road safety provides another compelling reason why quality should never be sacrificed for price. While driver behaviour remains the leading cause of crashes in South Africa, the Road Traffic Management Corporation (RTMC) reports that tyre-related defects are consistently the largest vehicle-related contributor to road crashes. According to the RTMC’s State of Road Safety Report, 58.3% of all crashes linked to vehicle defects were attributed to tyre bursts, significantly higher than those caused by faulty brakes or other mechanical failures.
In a country with one of the world’s highest road fatality rates, tyres should never be viewed as just another commodity. They are a critical safety component, making quality, performance and suitability for South African road conditions just as important as price. Choosing the cheapest option today could ultimately prove far more costly tomorrow.
Protection can be inclusive
Dumping is a temporary, artificial tactic used by importers to gain a foothold in a market. Limiting this conduct is not anti-competitive but rather corrective and stabilising for an economy at a particular stage of development.
Anti-dumping measures protect both producers and consumers while maintaining a healthy trading environment. They allow for the gradual growth of both imported and locally made products, and a healthy balance ensures a rich and diverse range of options for individuals and businesses alike. More importantly, maintaining this balance offers the local market sufficient confidence that any infrastructure investments made will yield long-term gains. Ends