SAMBRA and the RMI are actively engaging with government on the development of a new End-of-Life Vehicle (ELV) policy for South Africa.
If implemented correctly, an ELV policy has the potential to significantly strengthen the automotive industry by formalising the salvage value chain, improving vehicle traceability and ensuring that usable parts and materials are recovered responsibly.
Government is also highly motivated to progress this work as South Africa seeks to maintain access to key export markets, particularly Europe, where sustainability and circularity requirements are becoming increasingly important.
Balancing recovery with safe repair
There are, however, significant risks if the policy becomes overly scrappage-focused. South Africa already faces challenges around premature vehicle write-offs, and a system that incentivises scrapping vehicles before the end of their safe and economically useful life could place further pressure on consumers, repairers and the broader automotive value chain.
The RMI is therefore advocating extensively with government and other stakeholders to ensure that the developing framework balances environmental objectives with safety, affordability and industry sustainability.
Vehicle history and traceability
An important component under discussion is the introduction of a vehicle history and traceability system. This would help prevent vehicles that have been written off from simply re-entering the market without appropriate controls, while still allowing vehicles that can be safely and professionally repaired to remain economically productive.
Industry input into policy development
Most recently, the RMI, represented by the SAMBRA and TEPA Directors, participated in a workshop with government and a Japanese delegation to raise these concerns and share practical industry perspectives. The concerns were well received, and the Terms of Reference for the next phase of the work are being adjusted to better reflect the realities and interests of the South African automotive industry.
SAMBRA and the RMI will remain actively involved as the policy develops, ensuring that the repair sector has a strong voice in shaping a sustainable and workable ELV framework for South Africa.
