Mercedes-Benz, the luxury automobile maker, now exports 90% of its South African manufacturing to the European market and intends to phase out the sale of new petrol and diesel vehicles by 2035.
For a country that exports three-quarters of its car output, this scenario might lead to a decrease in the country’s automotive industry’s worldwide competitiveness.
Mark Raine, co-CEO of Mercedes-Benz’s local branch, emphasized the need of South Africa implementing swift regulatory reforms that support the adoption of electric cars (EVs).
Meanwhile, South Africa’s policy paper on electric vehicles (EVs) is currently running two years behind schedule.
Although the government has committed to publishing it later this year, this delay raises concerns about the country’s preparedness to embrace the electric vehicle revolution.
“The train (EV shift) is a global one, and it’s leaving the station. If South Africa doesn’t jump onto the train, it runs the risk of being left behind,” Raine told Reuters in an interview.
“A concrete EV Policy is definitely required and would support the inevitable evolution of the automotive industry to electric vehicles,” he said further, adding the policy needs to be implemented soonest.”
According to him, for South Africa to make meaningful strides in the adoption of electric vehicles (EVs), South Africa must prioritize several key initiatives.
This includes reducing import taxes on EVs to stimulate local demand, establishing a network of EV charging stations, and investing in the development of skills essential for the emerging EV ecosystem.
Mercedes-Benz, the prominent German carmaker, has set an ambitious global goal to phase out the production of diesel and petrol cars in its factories by 2030.
However, the transition in South Africa faces significant challenges due to the absence e of a well-established local ecosystem that supports electric vehicles (EVs), Raine said.
