A shift towards the manufacture and sale of electric vehicles in SA requires not just a structured local policy but also the willingness of international trade partners to rewrite local content rules so that the SA motor industry can transition to new technologies as painlessly as possible, says Naamsa.
“Without battery manufacturing in SA ... flexibility in the strict rules-of-origin requirements would be imperative for ongoing duty-free market access,” says Naamsa.Though referring primarily to EVs, the document, “SA’s New Energy Vehicle Roadmap”, accepts they are not the only potential clean alternative to petrol and diesel engine emissions. Hydrogen fuel cells and the carbon-neutral ICE fuels are also highlighted.
Carbon dioxide is also emitted during manufacture, distribution, recycling and disposal processes. “Carbon neutrality for motor vehicles cannot be achieved without CO2 emissions reductions throughout their life cycle.” Naamsa believes some form of purchasing subsidy is necessary, so much so that the industry is prepared to match any government subsidy “to narrow the price differential between NEVs and ICE vehicles”.
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Lots of moving parts if SA wants to be an electric-vehicle contenderTrade agreements with EU and UK mean manufacturers can’t do it alone, Naamsa says
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