“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.
New vehicle sales in 2026 continued their positive trend in April, with the 47 979 units sold marking the best April figure since 2013. This represents a remarkable performance by local automotive retailers despite a host of economic headwinds and a challenging trading environment.
April 2026 marked a turning point in South Africa’s economic landscape, as global energy markets were jolted by escalating geopolitical tensions in the Middle East, according to naamsa | The Automotive Business Council.
Audi is preparing to roll out its biggest SUV yet in the United States (US) this summer, betting that demand for high-end, three-row models will hold up even as trade tensions threaten to raise import costs.
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I have bad reflexes. I was once run over by a car being pushed by two guys
Woody Allen
Nissan’s decision to drop a planned $500 million investment in electric vehicle (EV) production at its Canton, Mississippi plant is the latest indication that established manufacturers are reassessing how quickly the market will shift to battery power.
Zero Carbon Charge (CHARGE) welcomes the government’s extension of short term fuel levy relief measures aimed at cushioning consumers from rising fuel prices, but cautions that these interventions do not address the underlying structural challenge facing South Africa’s transport economy.
Volvo Cars has started building the fully electric EX60 at its Torslanda factory outside Gothenburg, with first customer deliveries due in early summer.
