Trade, Industry and Competition Minister Ebrahim Patel says ten actions identified to support the development of South Africa’s Electric Vehicle productive capacity include an increase in the levels of investment and funding, including cost-effective incentive support.
He says other priorities include the facilitation and development of an electric battery regional value chain, including raw material refining.
Patel says the introduction of a temporary reduction on import duties for batteries in vehicles produced will also improve cost competitiveness. Addressing the media in Pretoria, Patel says the Finance Minister will announce the fiscal measures to support the production of electric vehicles during his budget announcement next year.
“We are looking at reducing the current petrol-driven incentives to electrical vehicles and provide additional support in the form of tax of fiscal measures as well as the use of what is called the JEIP funding. These are the resources with partners as part of South Africa’s transition. The introduction of temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market to improve cost competitiveness and this will be subject to careful consultation to ensure that local producers are not undermined.”
Patel adds that the country will start producing EV vehicles by 2026.
South Africa is the largest automotive manufacturing hub on the African continent, hosting global brands such as Toyota, Isuzu, Volkswagen, BMW, Nissan, Ford and Mercedes, among others.
It is also highly integrated into the global supply chain, drawing components from across the world and exporting the final consumer product to more than 150 countries worldwide.
“We’re already producing hybrids but we anticipate that the first electric vehicles are likely to be produced already by 2026,” Patel told journalists. – Additional info from Reuters.
