NAACAM welcomes the Department of Trade, Industry and Competition’s (dtic) release of the Electric Vehicle (EV) White Paper. The first phase of the EV roadmap will focus on developing the productive capacity of the domestic industry to support the EV transition.
- Minister Patel outlined key actions to be undertaken to support this approach at a media briefing this morning. This includes:
- Increasing the levels of investment and funding to catalyse EV investment in automotive assembly and component manufacturing.
- Facilitating and developing an electric battery regional value chain.
- Temporarily reducing import duties for batteries in vehicles produced and sold in the domestic market.
- Securing or maintaining duty-free market access for vehicles and components produced in SA.
- Leveraging R&D tax incentives to deepen domestic value addition.
- Commercializing green hydrogen production as a sustainable fuel.
- Implementing energy reforms
- Implementing reforms to network industries, including freight and rail.
- Refurbishing the rail line between Gauteng and Ngqura.
- Developing an EV certification programme for skills development.
Speaking at the briefing, NAACAM CEO, Renai Moothilal expressed his appreciation for the work that has gone into developing the White Paper and ensuring there is a robust policy framework that supports the components sector within this wider automotive sector transition, noting, “The components constituency is glad to once again receive the messaging that localisation of components and materials remains key as part of the longer-term automotive industrialisation strategy.”
He welcomed the announcement of increased investment incentives, and infrastructure and network reforms, recognising that these measures will drive the global competitiveness of the sector and are what component companies have been saying as being most important to long-term growth. This would enable South African component manufacturers to start, and in some cases, scale up their production of EV related technologies. View the EV white paper here.