The minister says South Africa will likely produce its first EV in 2026. At the Ministerime, he was outlining plans for the transition to greener modes of transportation in South Africa; the Minister of Commiserated said on Monday that the country’s automotive sector may create its first electric vehicle (EV) in 2026.
In South Africa’s Just Energy Transition (JET) strategy for a low-carbon and climate-resilient economy, the electrification of transportation is one of the main pillars that underpins the plan.
According to the JET plan, for the transport industry to significantly contribute to South Africa’s decarbonization objectives between 2023 and 2027, South Africa would require an investment of 128.1 billion rand, equivalent to $6.84 billion.
South Africa is the most extensive automobile manufacturing base on the African continent. It is home to several well-known manufacturers worldwide, including Mercedes, Volkswagen, Isuzu, and Toyota.
Additionally, it is heavily linked to the global supply chain, sourcing components from all over the world and exporting the finished consumer product to more than 150 nations worldwide.
According to statements made to the media by Ebrahim Patel, Minister of Trade, Industry, and Competition, “We are already producing hybrids, but we anticipate that the first electric vehicles are likely to be produced by 2026.”
According to his department’s conversations with the automobile manufacturers, the initial batch of electric vehicles will be restricted. According to him, growth should then pick up speed between 2026 and 2030, with just one manufacturer expecting to start manufacturing battery electric vehicles after the year 2030. He refrained from identifying any specific names.
The government outlined steps to support the transition in a 68-page electric vehicles (EVs) plan. These steps include government incentives, a temporary reduction in import duties for batteries in vehicles produced and sold in the domestic market, and the commercialization of green hydrogen production as a sustainable fuel source.
Additionally, it will conduct energy reforms and undergo reforms in the network industries, including freight trains and ports.
Although the country’s state-owned power provider, Eskom, is having trouble keeping the lights on, the electricity crisis is one of the country’s hazards.
According to the proposal, the effective restrictions on CO2-emitting automobiles that will take effect in essential markets such as the European Union and the United Kingdom in 2035 would have a significant impact because these markets absorb about half of South Africa’s automobile manufacturing.
