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The government is planning some major changes to its industrial policy for the automotive industry by providing incentives and support to other new energy vehicle (NEV) technologies, and not just electric vehicles (EVs).
This includes introducing tax rebates or subsidies for consumers to accelerate the uptake of these vehicles in South Africa.
President Cyril Ramaphosa told the SA Auto Week conference in Cape Town last week that consideration must be given to incentives for manufacturers as well as tax rebates or subsidies for consumers to accelerate the uptake of EVs as well as hybrid vehicles.
Ramaphosa did not provide any time scale for implementation of these incentives or indicate how they would be funded, but more detail could be revealed by Finance Minister Enoch Godongwana in the Mid-Term Budget speech on 30 October.
Billy Tom, president of automotive business council Naamsa and CEO of Isuzu Motors South Africa, said on Friday Naamsa recently had a meeting with Minister of Trade, Industry and Competition Parks Tau and has set up a follow-up session where he believes the issue will be unpacked and the industry will get more clarity around how the incentives will be funded. — Moneyweb
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