In an interview on Cape Talk NAACAM Executive Director Renai Moothilal said it is an exciting time for the local automotive manufacturing sector. Regarding New Energy Vehicle production and the transition to electric vehicles, Renai welcomed the 150% tax deduction on investment in electric and hydrogen-powered vehicle production, as signed off by the president.
Renai said the finalisation of the tax incentives for OEMs, including an accelerated tax break for capital investment into new energy vehicles, comes at an opportune time. He indicated that this comes on the back of the DTIC last year finalising a cash incentive for automotive component production locally. “In 2024 alone more than 55% of automotive components produced would have been exported into the EU and If our production status is not transitional to the kind of product that is expected to go into the markets, this is the type of export volume that could be lost,” he said.
Renai added that the tax break is one of many aspects to support a full transition to local EV manufacturing. “There is a definite need to transition to EV manufacturing and policy mechanisms are now in place,” he added.
Listen to the interview here: https://www.primediaplus.com/big-tax-break-for-new-energy-vehicle-production-can-boost-local-economy/ #WeAreNAACAM #NAACAMProud