Ramaphosa punts rebates to boost EV uptake

SA is considering introducing tax rebates or subsidies for consumers to boost buying of electric vehicles (EV), President Cyril Ramaphosa said yesterday, according to a TimesLIVE report. Global carmakers like Ford, Volkswagen, BMW and Toyota manufacture models in SA for both the local and European markets. Britain and the EU jointly consume 46% of the vehicles the country produces. The move towards cleaner and more sustainable fuels, plus stringent regulation in key markets, is putting pressure on some global carmakers to shift towards electric and hybrid models, Ramaphosa said at an automotive industry conference. ‘Consideration must be given to incentives for manufacturers, as well as tax rebates or subsidies for consumers, to accelerate the uptake of electric vehicles,’ Ramaphosa said. To encourage the production of electric cars in SA, the government will introduce an allowance for new investments from 1 March 2026, Finance Minister Enoch Godongwana said in February in his Budget. This will allow producers to claim 150% of qualifying investment spending on electric and hydrogen-powered vehicles in the first year. Ramaphosa added that the government is working to finalise comprehensive policy guidelines on so-called new energy vehicles ‘that do not exclude alternative technologies such as hybrids and plug-in hybrids’. Last year, the Minister for Trade, Industry & Competition published a white paper outlining steps to support the transition such as government incentives and a temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market. The paper also advocated the production of batteries for battery electric vehicles in SA and the development of value chains in the green hydrogen fuel cell market.

Full TimesLIVE report