Exorbitant EV prices pose serious threat to SA motor industry

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Local manufacturers produce only vehicles powered by internal combusion engines, which are being phased out globally, while SA consumers are put off by the cost of Green cars

Electric vehicles are crucial to the survival of local car manufacturers, but it will be at least five years before the vehicles are more affordable in SA, according to Toyota SA Motors CEO Andrew Kirby.

EV costs are expected to fall globally, and analysts forecast they could reach cost parity with ICE vehicles during the second half of this decade. The department of trade, industry & competition recently committed to the advancement of “new-energy” vehicles, publishing a Green Paper, “The SA Road to Production of Electric Vehicleson May 18. That could result in reduced import duties on EVs in the short term and, in the longer term, having EVs and their components built locally to reduce prices.

Ghana Msibi, WesBank’s Motor CEO, told the panel the bank was considering specific financing packages for EVs and their accessories, including wall chargers.

 

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