Budget Speech 2024Supporting the Production of New Energy Vehicles |
The Electric Vehicles White Paper outlines our strategy to transition towards a broader new energy vehicle production and consumption in South Africa, starting with electric vehicles.
It aims to transition the automotive industry from primarily producing internal combustion engine vehicles to a dual platform that includes electric vehicles, by 2035.
To encourage the production of electric vehicles in South Africa, government will introduce an investment allowance for new investments, beginning 1 March 2026.
This will allow producers to claim 150 per cent of qualifying investment spending on electric and hydrogen-powered vehicles in the first year.
The incentive will be implemented in addition to the existing support under the Automotive Production Development Programme.
Government has also reprioritised R964 million over the medium term to support the transition to electric vehicles.