Sunday, February 26, 2017

South Africa’s electric vehicle plan

South Africa’s electric vehicle plan
An article from 3rd May 2013 from Brand South Africa describing the South African governments roadmap for electric vehicles in the country.
The Department of Trade and Industry (DTI) has announced plans, including incentives for manufacturers and possible tax incentives for consumers, aimed at establishing an electric vehicle industry in South Africa.
The article goes on to say.
Manufacturers who produced 5 000 electric vehicles annually would qualify for the incentive, with the government reimbursing them for 35% of their production costs over three years, according to the roadmap. The DTI said it was also looking at various possible tax incentives to encourage South Africans to buy electric vehicles.  
At the moment we can only dream of 5,000 EV's being manufactured locally per annum. Less than 500 in total have been sold since 2013 and these are all imported models. Knowing that the government were possibly planning to incentivise the manufacture and purchase of electric cars makes the apparent demise of the roadmap even more disappointing. Maybe manufacturers could have been tempted to move their overseas EV production to this country with incentives like that. For instance if 35% of the price could be deducted from a Nissan Leaf, it would sell for just over R300,000 locally, instead of just under R500,000. They also mention tax incentives for the purchaser to further sweeten the deal. That would make it a far more attractive proposition to new car buyers and with the saving in fuel coats would make it cheaper to own then a comparable petrol or diesel powered vehicle.

It appears the roadmap was due to go to parliament that September, presumably to be either accepted or rejected as official government policy
In June, the DTI will engage industry stakeholders, including the National Association of Automobile Manufacturers of SA and National Union of Metalworkers of SA, on the road map, as well as invite public comment on the plan, before taking it to the Cabinet in September. Davies said the roadmap would be constantly monitored and reviewed as the industry was experiencing rapid technological advancement that would need to be taken into consideration.  
Unfortunately, I can't any recent references to this roadmap. All searches bring up articles from the same time as this one. It appears it might have died a death before it actually got started. This is unfortunate, if the roadmap had got into gear then maybe by now, four years later, their would be more electric vehicles on South Africa's roads and more infrastructure for charging.

Late last year The Electric Vehicle Industry Association was launched in South Africa, consisting of local car manufacturers and representatives from the government and other interested parties. I wrote about it on this blog last month. Since the launch of this association almost three months ago, there has been no more news to come out of it. Is this also going to be a non-starter like the roadmap?

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