Good news for South Africans with electric cars

National Association of Automobile Manufacturers of South Africa (Naamsa) CEO Mikel Mabasa says vehicle manufacturers plan to accelerate the installation of 100 electric vehicle (EV) chargers along major routes nationwide in 2025.

Speaking to Moneyweb, Mabasa confirmed that the project hadn’t been abandoned but said it faced delays in 2024 in bringing key stakeholders on board and attracting interest from black-owned businesses.

He told MyBroadband that the project was technically not delayed because no deadline had been specified for its implementation.

“However, we understand the massive public interest in providing regular updates as we push ahead with the provision of national charging infrastructure across all major highways in the country,” said Mabasa.

He confirmed that the installation of 100 additional EV charging stations is planned for 2025.

According to Mabasa, the challenges faced in South Africa in 2024, including the economic slowdown and associated challenges, also contributed to the project’s slowed progress.

Mabasa said South African-based vehicle manufacturers will accelerate the project this year, adding that installing charging infrastructure along all highways in the country is critical.

He explained that while the uptake of new energy vehicles (NEVs) in South Africa is expected to be slower than in nations like China and other markets, it’s vital that manufacturers invest in infrastructure as soon as possible.

“We still want to invest in infrastructure and that is why that project is still very important to us,” Moneyweb quoted Mabasa as saying.

Naamsa has been driving the project on the part of South African-based original equipment manufacturers, vehicle importers, and distributors.

In August 2023, Mabasa confirmed that Naamsa had finalised the adjudication of the multi-million-rand project’s tender and recommended a preferred candidate to its principals.

While he could not reveal the preferred bidder’s name, Mabasa said Naamsa had recommended that the company bring in a minimum of three South African black-owned companies for skills transfer, skills development, and BEE purposes.

However, he recently revealed that the nine bidders who applied had been reduced to a shortlist of three or four.

The project’s acceleration could see a vast number of EV charging stations installed along South Africa’s roads this year, with charge point operators Rubicon, Chargify, and Charge planning to add as many as 342 stations in 2025.

Win for EV makers in South Africa

Mabasa said Naamsa is energised and encouraged by the steps the South African government is taking to help the country transition to NEVs.

He added that the automotive council hopes recent developments in the space, driven by the government, will help accelerate this transition and enable South Africa to compete globally.

“The industry will definitely be able to get support from the government so it’s very good news. We are very very encouraged and happy that government is moving in the right direction,” said Mabasa.

This comes after President Cyril Ramaphosa signed a tax break for the production of so-called new-energy vehicles into law.

As a result, the country is poised for Chinese investment in its automotive industry, with three Chinese automakers already signing non-disclosure agreements with Naamsa.

“With good government policies we will attract new investment, we will increase and retain investment,” Mabasa said.

The tax break enables a 150% tax deduction on investment in electric- and hydrogen-powered vehicle production. This includes battery-electric, plug-in hybrid, and traditional hybrid vehicles.

While some automakers with local plants, including Ford Motor Co. and BMW AG, already make or plan to produce hybrids in the country, none have announced planned investment in battery-electric vehicles.

South Africa is well-positioned to benefit from the local manufacture of NEVs as it is the world’s largest producer of manganese, mines nickel, and has rare earth deposits, which are key components in the manufacture of batteries for EVs.

It’s also the largest miner of platinum, used in the fuel cells that power hydrogen-fueled vehicles.