SA motor sector must reap opportunities from electric car demand, says Ramaphosa [VIDEO]

President Cyril Ramaphosa said South Africa’s local automotive sector needs to position itself to take advantage of the demand for electric vehicles, new energy vehicles and sustainable fuels.

Ramaphosa was speaking at the South African Automotive Week at the Cape Town International Convention Centre (CTICC) in Cape Town on Thursday.

This year’s SA Auto Week theme is: “Reimagining the Future, Together: Celebrating 100 Years of Automotive Heritage, Passion, Resilience, and Ingenuity”.

2024 marks a hundred years of vehicle manufacturing in South Africa

Watch: Cyril Ramaphosa on promotion of new energy and electric vehicles

We are committed to working hand-in-hand with the private sector to promote the production of New Energy Vehicles and the development of the necessary infrastructure to support them.
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Electric vehicles

Ramaphosa said the transition to cleaner, more sustainable practices in the automotive industry is a “priority for our government.”

“The automotive industry has a critical role to play in achieving South Africa’s climate targets. We are committed to working hand-in-hand with the private sector to promote the production of New Energy Vehicles (NEV) and the development of the necessary infrastructure to support them.

“It is therefore encouraging that the Department of Trade, Industry and Competition, together with National Treasury and the Department of Mineral and Petroleum Resources are in conversation about implementing the Electric Vehicle White Paper,” Ramaphosa said.

Ramaphosa said the work includes the beneficiation of critical minerals for the production of NEV  batteries for battery electric vehicles and the development of value chains in the green hydrogen fuel cell market.

“We are working to finalise comprehensive NEV policy guidelines that do not exclude alternative technologies such as hybrids and plug-in hybrids.”

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Incentives and benefits

Ramaphosa said consideration must also be given to incentives for manufacturers as well as tax rebates or subsidies for consumers to accelerate the uptake of electric vehicles.

“This is not just about creating a greener future but also about ensuring South Africa remains competitive in the global market.  As many of our major trading partners rapidly shift towards EVs, it is imperative that we remain part of this global supply chain.

“This is a major industrialisation opportunity for South Africa and the region, particularly within the context of the African Continental Free Trade Area.  This will position South Africa as a forward-thinking, green economy. It will advance our aspirations to be a global automotive hub,” Ramaphosa said.

Auto sector in SA

Ramaphosa said the auto sector continues to be the star performer of South Africa’s economy, making a significant contribution to the country’s gross domestic product.

With the first Model T Ford rolling off the assembly line in the Ford plant in Port Elizabeth in 1924, Ramaphosa said South Africa’s automotive manufacturing footprint has expanded considerably with auto companies having invested an average of R8 billion a year while component suppliers invested R4 billion on average a year.

ALSO READ: SA is experiencing slow transition to electric vehicles, says expert