Under the new proposals, zero emission vehicles, which include battery-electric and fuel-cell electric vehicles, maintain a key dominance after 2035, which is also the target timeline of South Africa’s Automotive Masterplan. In 2022, about 4% of motor vehicles imported to the European Union were from South Africa, with 169 093 units in total.

Above these developments, battery electric vehicle sales continue to grow, and last year exceeded the number of new internal combustion sales in Europe, posting their highest figures in December.

“Europe’s Automotive Package announcement is no lifeline for the South African automotive industry,” says Hiten Parmar, Executive Director of The Electric Mission.

“International regulatory measures put further pressure on South Africa’s industrial transformation into local manufacturing of zero emission vehicles and their associated components. There are thousands of jobs on the line across the value chain of our automotive industry.”

The Battery Booster component of Europe’s Automotive Package will see investment in European manufacturing capacity to enhance local production of battery electric vehicles. There is a mutual benefit opportunity under the Clean Trade and Investment Partnership (CTIP) signed between the European Union and South Africa in strengthening the battery value chain across both regions.

“The significance of the 2035 timeline in Europe requires strategic intervention on the part of South Africa’s supply side and demand side policies” says Hiten. “This is a critical opportunity to take action and align the South African automotive industry with key markets.”

In January, Morocco achieved a historic industrial milestone as Africa's leading automaker, overtaking South Africa from the top position. Driven by rapid industrial expansion, high-tech investments and renewable energy infrastructure, Morocco’s automotive sector experienced a 79% increase in automotive production alone.

A G20 task force submission to the Presidency drew relevance to the adoption of electric vehicles in emerging economies. "Fuel efficiency and vehicle emission standards set fleet-wide performance benchmarks, encouraging manufacturers to innovate, whether through more efficient combustion technology or a faster transition to zero emission vehicles,” says Parmar.

While the automotive sector is a cornerstone of South Africa’s economy, the lack of clear policy and support is endangering it.