MARK RAINE: High EV import duty blocking industry transition

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Paying 18% for a V8 SUV or V12 sports car, but 25% for an all-electric crossover SUV is ludicrous

For decades SA has held the enviable status of being Africa’s biggest vehicle market by sales and exports. As a leader of one of the luxury automotive brands in SA, one of my many responsibilities is to maintain, if not exceed, this status quo.

According to the International Energy Agency , more EVs were sold weekly in 2021 than in the whole of 2012. In the last quarter of the year, 9% of all new cars sold globally were pure BEVs, and in Europe, BEVs outsold diesel cars in December 2021 and made up 12.5% of all new cars sales in the first half of 2022.

In SA, some of our first-time EV buyers have two concerns — driving range and battery longevity. Every new BEV we sell will come with a free wallbox charger installation at home , a free battery health check twice a year and an eight- or 10-year battery certificate, dependent on the Mercedes-EQ model chosen.

Looking elsewhere, it can certainly feel that SA is behind the curve on the electric transition. That’s not always a bad thing; we can avoid the expensive mistakes and dead-ends that have been made in some developed markets, while enabling the electric transition through price parity for EVs, charging infrastructure coverage to cater for a growing car park and a holistic ecosystem to service for the needs of electric vehicles, such as first-responder training and aftersales services.

Now, on the national level, we need to urgently look at making sure that charging infrastructure is widespread and its rollout is co-ordinated and strategic, ensuring that the right equipment is in the right place. Getting this right and developing a holistic EV ecosystem, inclusive of aftersales support, will be industry- and jobs-positive, allowing motor companies, dealers and customers to move into an electric future with confidence.

 

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