South Africa’s automotive industry is planning to produce its first electric vehicle (EV) by 2026, according to the country’s trade minister. The move is part of South Africa’s Just Energy Transition (Jet) plan for a low-carbon and climate-resilient economy, with the electrification of transport being one of the key pillars. The Jet plan estimates that an investment of R128.1bn ($6.84bn) would be needed from 2023–2027 to contribute meaningfully to South Africa’s decarbonisation commitments. South Africa is the largest automotive manufacturing hub on the African continent, hosting global brands such as Toyota, Isuzu, Volkswagen and Mercedes, among others.
The first batch of EVs will be limited, based on discussions the trade department is having with automakers, but growth is expected to accelerate between 2026 and 2030. Only one manufacturer is anticipating moving into battery electric vehicle production after 2030, according to the minister, but he did not name any brands. The government has outlined steps to support the transition, such as government incentives, a temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market, and the commercialisation of green hydrogen production as a source of sustainable fuel.
However, the country’s power crisis poses one of the risks as state-power utility Eskom struggles to keep the lights on. The plan outlined that the effective bans on CO2-emitting vehicles from 2035 in key markets like the European Union and UK will be profound, as they absorb nearly half of South African auto production. South Africa’s highly integrated global supply chain draws components from across the world, exporting the final consumer product to more than 150 countries worldwide. The country’s automotive industry already produces hybrids, but the minister expects the first EVs to be produced in 2026.
Written from resource material: https://www.bizcommunity.com/Article/196/390/244358.html and IOL article: ‘South Africa likely to produce its first electric vehicles from 2026, DTIC says’
