South Africa likely to produce first EV in 2026: Minister

Isuzu Motors

04/12/2023 14:44

JOHANNESBURG, Dec 4 (Reuters) - South Africa's
automotive industry will likely produce its first electric
vehicle (EV) in 2026, the trade minister said on Monday, as he
outlined plans for the country's green transport transition.
    The electrification of transport is one of the key pillars
underpinning South Africa's Just Energy Transition (JET) plan
for a low-carbon and climate-resilient economy. 
    The JET plan estimates that an investment of 128.1 billion
rand ($6.84 billion) would be needed from 2023–2027 for the
transport sector to contribute meaningfully to South Africa's
decarbonisation commitments.
    South Africa is the largest automotive manufacturing hub on
the African continent, hosting global brands such as Toyota,
Isuzu, Volkswagen and Mercedes, among others. 
    It is also highly integrated into the global supply chain,
drawing components from across the world and exporting the final
consumer product to more than 150 countries worldwide. 
  "We're already producing hybrids but we anticipate that the
first electric vehicles are likely to be produced already by
2026," Minister of Trade, Industry and Competition, Ebrahim
Patel told journalists. 
    Based on discussions his department was having with the
automakers, the first batch of EVs will be limited. Growth
should then accelerate between 2026 and 2030, with only one
manufacturer anticipating moving into battery electric vehicle
production after 2030, he added without naming any brands. 
    In a 68-page EV plan, the government outlined steps to
support the transition, such as government incentives, a
temporary reduction on import duties for batteries in vehicles
produced and sold in the domestic market, and the
commercialisation of green hydrogen production as a source of
sustainable fuel. 
    It will also reform network industries, including freight
rail and ports and implement energy reforms.
    The country's power crisis poses one of the risks as the
country's state-power utility Eskom struggles to keep the lights
on.
    The effective bans on CO2-emitting vehicles from 2035 in key
markets like the European Union and UK will be profound, as they
absorb nearly half of South African auto production, the plan
read.

($1 = 18.7387 rand)

 (Reporting by Nqobile Dludla; Editing by Sharon Singleton)
 ((nqobile.dludla@thomsonreuters.com; +27103461066;))