SA auto parts group Jendamark braces for US tariff hit

South African auto parts manufacturer Jendamark Automation stands to lose R750m ($43m) of contracts in a US market it has built up to account for 50% of its exports, its operations director told Reuters.

Jendamark automation engineer works on an automotive component for a vehicle to be exported, at Nelson Mandela University in Gqeberha, as the annual South African vehicle component manufacturers conference takes place, with a particular focus on how the industry is adapting to U.S. tariffs, in Gqeberha, Eastern Cape province, South Africa, 13 August 2025. Reuters/Shafiek Tassiem

The 40-year-old company based in coastal city Gqeberha builds automated assembly lines for catalytic converters, engines and axles for automotive customers such as BMW and Mercedes-Benz among others.

But like global automakers and suppliers far and wide, they have been hit hard by US tariffs.

"As it stands now, we've got about R750m of deals with our American customers that (we're) at risk of losing," Siegfried Lokotsch said.

"I don't know if they're going to still buy the lines from us. We thought we were going to get the orders, we were in a good position ... In my mind, they're gone (the contracts) because they've (the tariffs) just gone up."

About 85% of Jendamark's business in South Africa is for export, with 50% of that to the US, where it also has an office.

Jendamark is looking for new contracts in other markets, such as Saudi Arabia, but the company has its work cut out to replace the US business it expects to lose.

"To find a new market and to understand how they operate in the country and where the opportunities are is not something that just happens overnight," he said.