Johannesburg - South Africa is keen on bringing electric cars into the market and is putting in place a set of incentives for the local production of these vehicles locally thereby reducing the country’s carbon footprint and creating jobs.
Speaking at the launch of the Electric Vehicle Industry Roadmap on Thursday, Trade and Industry Minister (dti) Rob Davies said there was an overwhelming case for the transport industry to reduce its carbon footprint.
“We are well aware that as development takes place, transportation demand will grow. What is absolutely evident is that vehicle manufacturing must adopt new technology [for lesser emissions],” said Davies.
South Africa is the 13th largest global emitter of CO2.
Davies said the most promising development for lesser emissions seems to stem from electric emissions, adding that the department is proposing incentives for vehicle manufactures to produce electric vehicles. The package to encourage and support manufacturers will be incorporated within the Automotive Production Development Programme (APDP).
Davies said that South Africa should not be “left behind” in greening technologies.
“The proposal is that we will incentivise the automotive sector to manufacture electric vehicles in South Africa by introducing a very generous quota for manufacturing under the APDP to benefit from the overall incentive scheme. To qualify [electric vehicle manufacturers] must produce 5000 of the minimum volume and we have increased the percentage to 35% cash back in investment [over a three year period] which we propose,” explained Davies.
The APDP replaced the Motor Industry Development Programme (MIDP), which was in existence since 1995. It came to an end in January.
Under the programme, the incentive for localisation is 30% on cash back and manufacturers are required to manufacture 50 000 vehicles.
The APDP’s objective is to raise the volume of cars manufactured in South Africa to 1.2 million annually by 2020 as well as to diversify the component chain.
Incentives for consumers who buy the electric vehicles -- of which none are currently being manufactured in the country -- are still being considered.
Davies said that the public has not warmed up to the idea of electric vehicles, adding that government would consider purchasing these vehicles if they are manufactured locally.
In 2010, the dti in conjunction with the CSIR, the Department of Science and Technology (DST) and the Industrial Development Corporation (IDC) established an Electric Vehicle (EV) task team responsible for developing the architecture of the EV industry road map to create a conducive industry in the country. In 2012, the minister approved the road map proposed for EVs and the department is calling for public participation to align the proposal with broader government policy and plans.
Once manufactured the vehicles will not draw power from the Eskom grid. Davies emphasised that the road map stretches over a long term trajectory.
In February, Environmental Affairs Minister Edna Molewa introduced the department’s zero emission electric vehicles, also referred to as the green cars.
The move is part of government’s efforts to ensure that South Africa practically contributes to the reduction of environmentally harmful gases, by promoting the use of cleaner sources of fuel by the automotive industry.
At Thursday’s launch, Molewa said that since the introduction in February, three charging points that run on solar power for EVs had been established in the Gauteng province as part of the pilot project. The department aims to have 50 charging points in and around the province in the future.
The vehicles, said Molewa, were not any different to ordinary vehicles.
In June, the department will engage industry stakeholders (including NAAMSA and NUM among others) on the map and public comments into the matter will be collected.
In September, the map will be taken to Cabinet.
Davies said that it was at an early stage to say how much these vehicles would cost as the technology was still at an early stage. However, EVs are projected to cost more than normal vehicles but that the running costs would be lower over time. – SAnews.gov.za
