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Monday, 17 August 2020

Harnessing electric vehicles for industrial development in South Africa

  • Year: 2020
  • Organisation: Report by TIPS and Change Pathways for the DTIC and NAAMSA
  • Author(s): Gaylor Montmasson-Clair (TIPS), Anthony Dane (Change Pathways), Lesego Moshikaro (TIPS)
  • Countries and Regions: South Africa

The world of mobility is rapidly evolving worldwide. Technological developments are notably enabling the diversification of drivetrains, away from traditional internal combustion engines (ICE) towards electric and other alternative motors. While EVs still account for a marginal share of global vehicle sales, the shift is evident in leading markets. All forecasts point to an exponential growth of EVs in the coming decades.The world of mobility is rapidly evolving worldwide. Technological developments are notably enabling the diversification of drivetrains, away from traditional internal combustion engines (ICE) towards electric and other alternative motors. While EVs still account for a marginal share of global vehicle sales, the shift is evident in leading markets. All forecasts point to an exponential growth of EVs in the coming decades.

Heightened environmental regulations, linked to climate change mitigation and air quality improvement, have initiated the transition to cleaner forms of transportation. Policy impetus, such as support programmes and tight environmental targets, are now driving the market globally. In addition, favourable economics, which see EVs being increasingly cheaper to own than petroleum-based cars over their lifetime, and consumer experience, linked to the connectivity, reactivity and usage experience of the vehicles, are supporting the transformation.

South Africa lags behind this global trend. EVs remain extremely marginal, be it from an offer, demand or manufacturing perspective. As heralded by government and industry alike, it is, however, the ambition of the country to rapidly enter this space. While a coherent policy environment is lacking, the country’s Green Transport Strategy sets out government’s vision to radically grow the uptake of EVs in South Africa. As with every transition, the emergence of EVs brings disruptions, calling for the need to adequately manage the transition. In the short term, this requires supporting the development of the sector, both from a market development and manufacturing perspective, through a coherent policy framework consistent with South Africa’s domestic context. This report aims to inform this transition in the South African context.

 Press Release

Shifting to electrical vehicles in South Africa – the time is now

Media Article

The time for S Africa to shift to EV production is now, says TIPS report - Irma Venter, Engineering News 20 August 2020