Isuzu South Africa has urged government to consider extending electricity tariff relief to the domestic steel industry, arguing that lower energy costs would improve the competitiveness of locally produced steel and strengthen downstream manufacturing, particularly the automotive sector.

Isuzu president Billy Tom said a commercially sustainable steel industry and globally competitive vehicle manufacturers should complement one another rather than be viewed as competing interests.

He stressed that affordable, reliable, locally produced steel is essential for South African vehicle manufacturers competing in export markets and against lower-cost imports from countries such as China and India.

The appeal comes as the local steel industry faces mounting pressure from rising electricity costs, weak domestic demand, increasing imports, global overcapacity and logistical challenges.Electricity prices have risen by more than 700% since 2007, with ArcelorMittal South Africa reporting electricity costs of R3.5 billion in 2025.Recent electricity tariff concessions granted to ferrochrome producers have prompted calls for similar support for steel manufacturers.

Government says the Steel Master Plan remains its primary framework for rebuilding the sector through financial support, localisation measures, trade protections and ongoing discussions with Eskom over electricity pricing.

The Department of Trade, Industry and Competition has also temporarily permitted certain steel imports to ensure the automotive industry has sufficient inputs while Newcastle Works remains under care and maintenance.

Industry representatives warned Parliament that domestic steel production continues to decline while imports account for an increasing share of consumption, placing further strain on local producers.

Government is simultaneously pursuing trade remedies through the International Trade Administration Commission to counter unfairly priced imports while responding to changing international requirements for lower-carbon steel exports.