The announcement came during his speech last Thursday at the South African Auto Week 2024 in Cape Town.
The initiative expands on February’s incentives for automakers with local manufacturing facilities – including Ford, Volkswagen, BMW, and Mercedes-Benz – to produce new-energy vehicles in South Africa.
While specific details remain unclear, industry experts suggest several potential measures to make EVs more affordable. These include reducing import duties from 25 percent to 18 percent to match conventional vehicle rates and introducing income tax rebates of R30,000-50,000 (US$1,590-2,650).
“It’s what the industry has been waiting to hear,” said Greg Cress, principal director of automotive and e-mobility at Accenture. “The fact that it has been made at the highest level hopefully gives a strong signal of intent that the government is listening to the industry.”
The move comes as South Africa seeks to boost EV adoption in a market where internal combustion engine vehicles dominate 99 percent of sales. Despite pure-electric vehicle sales nearly doubling to 931 units in 2023, this represents a fraction of the more than 530,000 conventional vehicles sold.
The Automotive Business Council (Naamsa) welcomed the announcement, noting that the policy guidelines will include hybrids and plug-in hybrids. “These measures will ensure that South Africa remains part of the global supply chain as major trading partners shift towards EVs,” the organization said.
Industry experts emphasize that stimulating consumer demand could encourage manufacturers with existing South African operations to consider local EV production, benefiting both buyers and the country’s automotive sector.
