After India, South Africa too offers tax breaks to boost EV industry

India announced a new EV policy last week that offers lower EV import duties to lure foreign manufacturers to set up local facilities.
Volkswagen ID.4
South Africa has announced tax benefits for EV makers in an attempt to boost its electric vehicle industry. (REUTERS)
Volkswagen ID.4
South Africa has announced tax benefits for EV makers in an attempt to boost its electric vehicle industry.

South Africa expects efforts to boost its electric vehicle manufacturing to yield swift results, as manufactures start to take advantage of tax incentives from early 2026.

“We are ready now for carmakers to begin to gear up," Trade and Industry Minister Ebrahim Patel told reporters. “A carmaker can commence immediately to put in place the production capabilities and production systems," he said Monday on the sidelines of a Black Industrialists and Exporters Conference in the capital, Pretoria.

Also check these Vehicles

Find more Cars
Mg 4 Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon64kWh Range Icon350 km
₹ 30 - 32 Lakhs
View Details
Tata Sierra Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon69 kWh Range Icon420 Km
₹ 25 - 30 Lakhs
View Details
Tata Harrier Ev (HT Auto photo)
UPCOMING
BatteryCapacity Icon50 kWh Range Icon400 Km
₹ 22 - 25 Lakhs
View Details
Honda Elevate Ev (HT Auto photo)
UPCOMING
₹ 18 Lakhs
View Details
Tata Punch Ev (HT Auto photo)
BatteryCapacity Icon35 Kwh Range Icon421 km
₹ 10.99 - 15.49 Lakhs
Compare
View Offers
Tata Tiago Ev (HT Auto photo)
BatteryCapacity Icon24 kWh Range Icon 315 km
₹ 7.99 - 11.89 Lakhs
Compare
View Offers

South Africa, in an effort to preserve a key export industry, last month announced a 150% tax deduction on investments in the local production of electric and hydrogen-powered vehicles from March 2026.

The country’s vehicle exports generated more than $21 billion in earnings last year. But car companies were worried about the lack of government support for EVs, amid shrinking demand for conventional petrol and diesel-powered engines in Europe, South Africa’s primary export market.

Also Read : India approves new electric vehicle policy with lower tax on imported electric cars.

Patel said the long lead time was designed to give South African carmakers enough time to prepare production facilities and win support from their parent companies.

Also Read : As India lures global EV makers, check out foreign brands that are expected to launch along with Tesla.

“As they incur that expense off the back of our incentive, they know they will be reimbursed," he said.

The tax break is key for South Africa, which despite its natural advantages, has done little to develop an EV industry in the country.

Also Read : As MG Motor plans to launch new models, 5 cars we would like to see in India

South Africa has abundant supplies of raw materials vital for the manufacture of lithium-ion batteries, including increasing supplies of nickel and the world’s largest reserves of manganese. it also holds the world’s largest platinum reserves, a metal used in fuel-cell engines that run on hydrogen.

First Published Date: 19 Mar 2024, 09:32 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.