Mkhululi Mlota
The Department of Trade, Industry and Competition (DTIC) should present a refined new-energy vehicle (NEV) policy to Cabinet before the end of the year, says DTIC automotives chief director Mkhululi Mlota.
The DTIC in May issued a Draft Green Paper on the Advancement of New-Energy Vehicles in South Africa. NEVs include hybrids, battery electric vehicles and fuel-cell vehicles.
The original timeline was for the NEV policy to have been presented to Cabinet by the end of October, says Mlota.
However, the DTIC realised that some additional work needed to be done on the document, with the need to develop a “clearer, more pointed policy that supports electric vehicles and NEVs in South Africa”.
“Before the end of the calendar year we should have something to share with Cabinet and hopefully get some direction going forward,” says Mlota.
“That target is that we should be in a position in a few months to issue our road map on how we are going to transition to e-mobility and provide some details on the support to be provided by government.”
Mlota says the policy looks at three main issues.
The first is how to best stimulate local NEV, as well as NEV component manufacturing in South Africa. The second issue is how to encourage the local uptake of NEVs to ensure that the South African auto industry does not only service export markets, but that these vehicles are also in demand in the domestic market.
The third focus area is to ensure that South Africa continues to support and create a conducive environment for investment in the automotive sector.
“This is a sector dominated by multinationals and we need to ensure that the environment is good for them to invest in the country,” explains Mlota.
* Mlota spoke at the Nedbank electric vehicle webinar