Naamsa | The Automotive Business Council says it is disappointed that last week’s National Budget Speech made no “solid commitment” to a support programme for the manufacturing of new-energy vehicles (NEVs) and NEV components in the country.
Naamsa said Finance Minister Enoch Godongwana did not provide any policy guarantees for the South African automotive industry’s “inevitable transition” to NEVs, which include hybrids and electric vehicles.
Naamsa’s comments come as the local automotive industry still awaits the release of government’s NEV policy, set to guide and support the country’s transition from internal combustion engine vehicles to EVs.
The Department of Trade, Industry and Competition (DTIC) in May 2021 released a Green Paper on NEVs, promising a White Paper in October of the same year.
However, the department has since failed to publish the White Paper. It was widely believed that this year’s Budget would have provided some guidance on government’s planned support for one of the country’s biggest manufacturing sectors.
Naamsa notes that the delay in the promulgation of the NEV White Paper continues to pose one of the “biggest risks towards investment and the retention of jobs in many of our local production lines”.
The association of vehicle manufacturers says the country's policy makers must “demonstrate a tangible and deliberate intent to create and stimulate a competitive environment for the NEV market through various government support schemes for NEV production, in order for the South African automotive industry to remain globally relevant, competitive and strong".