EDITORIAL: Shift electric vehicle output to fast lane

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Government must reposition automotive industry for this transition

As SA export markets steer car manufacturers away from fossil fuel-based transport, our policymakers in the trade & industry department need to move with speed to position the local car manufacturing industry for this transition.

BMW exports more than 95% of X3 cars built at the assembly plant, which has annual capacity for 76,000 vehicles, and all use the traditional internal combustion engine powered by petrol or diesel. That has set off a race by carmakers such as BMW, which wants at least half of its global sales to be zero-emission vehicles by 2030.

about R40bn by 2040 if the plants are not adapted to the growing demand for electric vehicles, Mike Mabasa, head of the industry body group Naamsa, has warned. It is incomprehensible to set goals to increase output of fossil-fuelled cars when our export markets are moving in the opposite direction. The global sales of EVs increased from 540,000 to 3.24-million units between 2015 and 2020.

One of them should be to incentivise the take-up of EVs in the country by removing duties on imported cars as is the case in other countries. In nearly all markets in which demand is growing, governments offer purchasing incentives, including duty rebates.

 

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