From policy to action: Now is the time for South Africa to embrace new energy vehicles

South Africa must move from policy to action as a matter of urgency, aligning incentives, infrastructure, skills, and industrial coordination around new energy vehicles, writes the CEO of Tshwane Automotive Special Economic Zone, Dr Bheka Zulu.

[This article first appeared in Business Day – Time for SA to embrace new energy vehicles for export survival – 22 October 2025]

South Africa’s automotive industry stands at a turning point. The global race toward low- and zero-emission mobility is accelerating, and for a country whose automotive exports hinge on access to the European market, embracing New Energy Vehicles (NEVs) is no longer optional, it has become an industrial necessity.

The Electric Vehicle (EV) White Paper and the South African Automotive Masterplan 2035 (SAAM) together lay a strong policy and strategic foundation. The challenge now is moving from intent to implementation.

The country has a clear opportunity to build an inclusive, competitive, and sustainable automotive industry powered by innovation, ready for a net-zero world.

Transformation is a must

The global automotive landscape is undergoing a profound transformation, driven by the urgency to reduce carbon emissions and achieve net-zero goals.

The European Union’s carbon neutrality policies are among the most influential in this shift, setting strict timelines for phasing out internal combustion engine (ICE) vehicles and promoting zero- and low emission alternatives.

The EU aims to be climate-neutral by 2050. The objective is to ensure an economy with net-zero greenhouse emissions.

For South Africa, this presents both a challenge and an opportunity. The EU remains South Africa’s largest export market for vehicles, accounting for the bulk of automotive exports. A significant 68,7% of light vehicle production was exported in 2024, with three out of every four cars headed to Europe.

This means that the EU’s green regulations will directly determine South Africa’s ability to continue trading competitively in this critical sector. Vehicles built in Gauteng and other parts of the country will increasingly need to meet low- or zero-emission standards to remain eligible for export.

Transitioning now is not optional, it is essential.

Early investment in NEV production, local battery manufacturing, and supporting infrastructure such as charging networks will safeguard South Africa’s market access, maintain its global competitiveness, and create a foundation for long-term industrial sustainability.

Policy meets opportunity

The EV White Paper charts a managed transition from internal combustion engines to cleaner technologies, ensuring decarbonisation does not lead to deindustrialisation. It sets out steps to localise EV production, develop charging infrastructure, and build skills for the future.

The White Paper allows for a managed transition, setting out a number of processes:

• Developing domestic production and localisation of EVs and components;
• Phased fiscal support, import duty adjustments (especially for battery inputs), and tailored incentives to accelerate early uptake;
• Infrastructure requirements including charging networks, grid readiness, standardisation and inter-operability; and
• Mechanisms to coordinate across government, industry, labour and other stakeholders.

It has identified 10 actions required to build an EV production ecosystem, including the beneficiation of critical minerals, battery reuse and refurbishment, regulatory alignment, and incentives for localisation.

Complementing it, the South African Automotive Masterplan (SAAM 2035) envisions South Africa increasing local content in vehicle manufacturing, expanding exports, and doubling employment by 2035.

SAAM 2035 sets out six focus areas: optimising the local market, developing the regional market, localisation, infrastructure development, industry transformation, and technology a skills development.

Targets include:

• Increasing local content in assembled vehicles from around 39% to 60% by 2035;
• Growing South Africa’s share of global production to 1 %;
• Doubling employment in the sector across all tiers;
• Creating new tier-2 suppliers to broaden the supply chain, with a particular focus on black-ownership and localisation.

Together, the EV White Paper and SAAM 2035 frame a just, inclusive transition that can preserve and grow the country’s industrial base.

Driving Implementation

Turning these policies into tangible outcomes depends on strong institutions. In Gauteng, the Gauteng Growth and Development Agency (GGDA), its subsidiary the Automotive Industry Development Centre (AIDC), and the Tshwane Automotive Special Economic Zone (TASEZ) are taking the lead.

TASEZ, Africa’s first automotive city, is positioning itself as a hub for future-focused investment, where manufacturers and suppliers can plug into purpose-built infrastructure, training, and incentives.

The AIDC, through its learning centres and supplier parks, is aligning skills and enterprise development with EV technologies. Together, these institutions are turning national ambition into provincial action.

South Africa must act quickly to overcome power constraints, develop a local battery value chain, and align incentives to attract NEV and component investment.

Global markets are already shifting and delays could cost South Africa export access, investor confidence, and thousands of jobs.

A call to lead Africa’s NEV revolution

The upcoming 2025 NEV Summit, hosted by GGDA, AIDC, and TASEZ on 22-23 October 2025 at the Gallagher Convention Centre, represents the next phase: uniting government, industry, and investors to accelerate implementation.

From policy to action, South Africa’s NEV future depends on decisive execution.

• First published by Business Day Bheka Zulu: Time for SA to embrace new energy vehicles for export survival: 22 October 2025.