Government is engaging stakeholders to identify ways of creating a conducive environment for the adoption of electric vehicles.
It also focuses on the investment opportunities in the electric mobility value chain, as the technology has shown evidence of viable business cases in key industries, including last-mile delivery, public transportation, freight and logistics, and private passenger transportation. Sales of electric trucks and light duty vehicle have been recorded in official statistics for the first time, showing the EV market is diversifying away from being predominantly private passenger vehicle sales.
“To encourage the local production of EVs, government says it will introduce an allowance for new investments, beginning 1 March 2026.” He highlighted the local production of EVs as an important part of the Energy Transition Investment Plan, with the potential to drive investment in green energy and skills development programmes.According to the GreenCape report, there are currently no EV models manufactured locally in SA , which means consumers are dependent on EV imports.
“With regards to EV policy development, 2023 was a significant year for SA. The Department of Trade, Industry and Competition released the Electric Vehicle White Paper in December 2023. The key insight from this policy document relevant to this MIR is that the focus of government incentives and financial support will be directed towards the automotive manufacturing industry to support local EV production in the medium-term with the first battery,” says the report.