“We welcome the announcement by the National Treasury to allocate funds to support the local production of new-energy vehicles and batteries, as well as related manufacturing projects,” says Joubert Roux, Founder of CHARGE.
“We hope that the government will also support the development of our off-grid, solar-powered EV-charging stations, which will foster the need for new-energy vehicle sales,” Joubert tells Dealerfloor.
The National Treasury says the country is the largest automotive manufacturing hub in sub-Saharan Africa, hosting brands such as Toyota, Ford, Isuzu, Volkswagen, Mercedes and BMW, among others.
Reuters reports that government incentives and policy interventions will encourage original equipment manufacturers to invest more in the production of electric vehicles in the country.
South Africa released its Electric Vehicles White Paper in 2023, outlining the country's strategy to transition the automotive industry from primarily producing internal combustion engine vehicles to a mix that includes electric vehicles by 2035.
In its annual budget review, the Treasury says the department of trade and industry, in partnership with the department of mineral resources, plans to approve and implement a regional critical minerals strategy, without giving a timeline.
Critical minerals such as copper, cobalt and lithium are needed for the production of products like electric vehicle batteries and solar panels and are key to the world's energy transition.
The Treasury says R1 billion was being set aside over the medium term for the industrial development support programme, an incentive scheme that aims to increase participation and investment in infrastructure by firms in selected manufacturing sectors such as automotive.
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. The incentive is expected to attract 30 billion rand in investment from the private sector, the Treasury adds.
GWM South Africa has introduced a new 3.0 litre turbodiesel engine across its line-up, fitting it to both the P500 bakkie and the Tank 500 SUV. The P500 becomes the first vehicle in the range to receive the new powertrain, while the Tank 500 gains a diesel alternative to its existing HEV derivative.
Affordability is driving a structural shift in South Africa’s vehicle market, with SUVs gaining significant ground as consumers increasingly seek competitively priced, well-equipped vehicles.
South Africa’s used car market continued to grow during the first half of 2026, despite pressure on household budgets and a 25 basis point interest rate increase in May.
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Cars are the ultimate symbol of freedom, independence and individualism. They offer the freedom to ‘go anywhere,’ whenever it suits and with whom one chooses.
Sarah Redshaw
Toyota is sharpening its focus on hydrogen as a practical route to cleaner heavy-duty transport, using IAA Transportation 2026 to showcase new fuel cell technology and partnerships with leading commercial vehicle manufacturers.
To mark World EV Day, Zero Carbon Charge (CHARGE) has launched the N3 EV Real-World Test. The initiative will turn everyday electric vehicle journeys between Johannesburg and Durban into a growing source of real-world data for South African motorists and fleet operators considering the switch to electric.
Electric and hybrid vehicles are changing more than what South Africans drive. They are changing what happens behind the workshop doors, too.
