SA's automotive sector to be boosted by major government policy changes for the EV market
These include tax rebates and subsidies for consumers to boost the adoption of electric and new energy vehicles.
Electric car / Pixabay: Joenomias 3117778 1280
Stephen Grootes speaks to Mikel Mabasa, CEO of Naamsa.
Listen to the interview in the audio player below.
The global transition towards decarbonisation presents challenges, particularly for an emerging economy like South Africa, but also immense opportunities for the local automotive sector.
The Automotive Business Council (Naamsa) has acknowledged the critical role it plays in promoting a green, sustainable future in the automotive industry.
The local industry has put its support behind government’s initiatives to begin the production of electric and hybrid vehicles in the country.
Naamsa has also welcomed President Cyril Ramaphosa's announcement of a comprehensive New Energy Vehicle (NEV) policy guidelines, which includes alternative vehicle technologies such as hybrids and plug-in hybrids.
Ramaphosa was the keynote speaker at the SA Auto Week 2024 in Cape Town last week.
Speaking to Stephen Grootes on The Money Show, Mikel Mabasa, CEO of Naamsa says incentives for manufacturers and subsidies for consumers is a crucial step towards the widespread adoption of cleaner, more sustainable vehicles.
He says these measures will ensure that South Africa remains part of the global supply chain as major trading partners shift towards EVs.
"I think the president understands that the competition here is actually between his government and other government's around the world who have already started providing exactly what the president announced."
- Mikel Mabasa, CEO - Naamsa
"The competition now is actually between governments, it's no longer between manufacturers themselves."
- Mikel Mabasa, CEO - Naamsa
"South Africa's adoption rate is going to be much slower. We are going to see the internal combustion engines still in our market for much longer...a lot of poor people can still not afford electric vehicles or new energy vehicles."
- Mikel Mabasa, CEO - Naamsa
Scroll to the top of the article to listen to the full interview.