According to Bloomberg, because South Africa President Cyril Ramaphosa has signed a law to reduce tax reduction for new energy vehicles, it plans to implement a 150%tax reduction policy for enterprises investing in electric vehicles and hydrogen -powered vehicles in South Africa. Chinese automakers It is planned to invest in South Africa’s automobile industry.
Mikel Mabasa, CEO of the South African Automobile Manufacturers Association (Naamsa), said that three Chinese auto manufacturers have signed a confidentiality agreement with the South African Automobile Business Commission, but rejected which car companies. Mikel Mabasa said: “With the active support of South African government policies, South Africa’s automotive industry will attract and retain new investment.”
In the South African market, Chinese automakers Chery Automobile and Great Wall Motors are competing with global automakers such as Toyota Motor and Volkswagen Group. In December 2024, the Chinese ambassador to South Africa said that the Chinese government encouraged Chinese automakers to invest in South Africa.
The South African tax amendment was first proposed in the South African national budget in February 2024, but it was not promulgated by Cyril Ramaphosa until December 24, 2024. Although car companies such as Ford Motors and BMW Group are or planning to produce hybrid vehicles in South Africa, none companies have announced their plans to invest in pure electric vehicles.
The heads of Volkswagen Group and Kuibu in South Africa said they believe that the two companies cannot produce electric vehicles in South Africa. However, Stellandis said that once South Africa’s operating environment is favorable, the company plans to produce pure electric vehicles in South Africa.
Due to the gradual elimination of internal combustion engines in South Africa’s largest automobile export market, South Africa’s automobile manufacturing industry is currently facing risks. Mikel Mabasa said that despite the popularity of electric vehicles in developed markets such as the European Union and the United States, South Africa needs to begin to produce electric vehicles to maintain the status of South Africa in the global automobile industry.
Stellandis Mike Whitfield, head of African region south of the Sahara Desert, said that if electric vehicles are produced, South Africa needs to take the following necessary measures, such as an additional investment in the charging station network to develop the supply chain of “using southern African mineral resources” and reduce electricity to reduce electricity. Car sales tax. Mike Whitfield said that in addition to tax amendments, South Africa also needs to take other measures because companies will not confirm investment decisions by virtue of tax amendments.
Mikel Mabasa said that in view of the imperfect infrastructure and relatively rich consumer foundation in South Africa, South Africa is still the most attractive place for automakers in the African continent. At the same time, South Africa’s automobile industry also needs more support. “If the South African government failed to provide policy support, the South African automotive industry would die if the South African government failed to provide policy support.”
South Africa is the largest producer of manganese and nickel mines in the world, and has rare earth mines. These are key components for making electric vehicle batteries. South Africa also has the largest platinum ore, and platinum can be used to make fuel cells and provide motivation for hydrogen fuel vehicles.