which represents many of the key players in South Africa’s motoring industry, has recommended that government subsidise South Africans wanting to buy full electric vehicles to the tune of R80 000 – and wants this subsidy in place until 2035., has also called for subsidies for mild hybrid and plug-in hybrids to the tune of R20 000 and R40 000, respectively.
The value of the subsidy should be determined by the type of vehicle being subsidised, it added. An incentive of this kind would optimise support for entry-level electric vehicles, with less benefit for more expensive ones. South African consumers have been slow to adopt EVs and hybrid vehicles for various reasons. However, there has been an uptick over the past year. Sales showed a significant year-on-year increase of 432%, from 896 units in 2021 to 4 764 units in 2022. But this is still negligible as a percentage of total new vehicle sales.The global transition towards electrically powered vehicles is a critical step to securing the future of the automotive industry in South Africa, the white paper said.
The country needs to enhance existing policies to help the industry, including developing an attractive fiscal and regulatory framework that makes South Africa a highly competitive and compelling location for EV and hybrid vehicle production.