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SA Electric Cars – Someday, Not

The next five to ten years in the automotive industry will be defined by dramatic changes.

It’s no wonder that the adoption of electric vehicles (EVs) will increase exponentially as legislative changes are enforced to contain the environmental impact of the transportation industry.

Recently, China has mandated automakers that EVs will account for 40% of total sales by 2030.

Similar legislation is in place in developed countries, with the United States requiring 50% of EVs by 2030, and the United Kingdom and the European Union requiring 100% of EV passenger cars by 2025. ..

In essence, these moves by some of the world’s largest economies mean that EV production and demand will grow on a new scale.

These markets may reach their targets before the set date. As a result, the industry expects rapid and exponential changes.

The question is how will these changes affect the South African market, the exporter of automobiles?

As South Africa’s largest export markets are the United Kingdom and the United States, automakers need to be prepared to reach their 2030 global goals in order to maintain these export levels and significant contributions to GDP. I have.

Considering overseas development, other considerations include what the EV environment will look like in South Africa, and rather when EVs will be widely adopted by individual and corporate fleets.

Positive signs indicate that the local environment can support the transition to EVs and maintain the relevant benefits of EV infrastructure in the country.

South Africa’s energy problems are likely to improve

South Africa is now in its 15th year of load limits and rolling blackouts, but infrastructure and policy improvements are welcome.

The South African government recently approved an increase of 100 MW of electricity for independent power producers.

This is a breakthrough development that allows non-governmental agencies to create their own power and sell it back to the grid. This 100 MW capacity can power Kimberly-sized cities, or at least 140,000 households.

It is expected that this will trigger the adoption of EVs in South Africa. When a local company investigates self-produced renewable energy, it may consider implementing an EV charging station in its place of business when migrating to an EV fleet for the benefit of cost savings.

The initial purchase price of an EV is higher than the initial purchase price of a typical internal combustion engine (ICE), but the total cost of ownership of an ICE is significantly higher.

There is a potential disruption to the fleet management environment with low cost ownership for low prices on the card.

Review of EV import tax being carried out

The increase in EV adoption in South Africa is due to the government’s import tax on EVs, which are considered luxury cars by current law.

However, the government is considering a review to eliminate heavy tariffs on electric vehicles. This may reduce import costs and promote more cost-effective EV purchases.

OEM car bringing EV to South Africa

Between 2020 and 2021, South Africa’s EV market has doubled, albeit small, and now more EV models are emerging.

Original Equipment Manufacturers (OEMs) seem confident in their use of EVs in South Africa. Everyone states that if the EV is produced locally, it is not, but in South Africa.

SA needs to adapt to the transformed automotive industry, which employs more than 120,000 people, in order to remain competitive by manufacturing EVs domestically.

A curious approach reveals future opportunities

With the rapid innovation in the vehicle, payment and data industries, Standard Bank continues to offer a variety of ways to save time and money for fleet customers.

The automotive industry is at the beginning of a transformational journey and work is underway to ensure that all the fleet services needed to support electric vehicles are already in place.

OEMs, companies, and consumers promote widespread adoption of EVs, reduce carbon dioxide emissions in the transportation industry, bring cost savings to businesses, and promote, support, and enhance EV production in the county. It is hoped that incentives will be given through laws that provide rebates for. Export proposals and competitiveness of the automobile industry.

SA Electric Cars – Someday, Not

Source link SA Electric Cars – Someday, Not

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