South Africa to incentivise local EV production

South Africa plans to incentivise local electric vehicle (EV) production through significant financial support. The country is making a big push to become a leader in electric vehicle (EV) production, and they’ve got some really interesting plans to make it happen.

South Africa, known for its rich automotive manufacturing, is setting its sights on the future. The government has announced a financial support plan to incentivise local EV production. They’re committing 1 billion rand, which is roughly $54.27 million, to support the production of new energy vehicles and batteries, as well as related manufacturing projects.

South Africa’s National Treasury announced the 1 billion rand ($54.27 million) to support the local production of new electric vehicles (EVs) and batteries on Wednesday, March 12.

The National Treasury statement says, “The purpose of the incentive is to enhance the local production and assembly of new energy vehicles, batteries and projects focused on operational efficiency and competitiveness in new manufacturing projects.”

South Africa is already the largest automotive manufacturing hub in sub-Saharan Africa, home to major brands like Toyota, Ford, Isuzu, Volkswagen, and Mercedes. The industry believes that government incentives and policy interventions will encourage these manufacturers to invest more in EV production within the country.

To support this transition, the government released the Electric Vehicles White Paper in 2023.