South Africa Warns EV Shift Risks Auto Export Hub Status as Incentives Lag Asia

JOHANNESBURG — South Africa's automotive industry warns it risks losing future vehicle production to Asian rivals as global automakers decide where to build next-generation electric vehicles, despite a new 150% tax deduction signed into law by President Cyril Ramaphosa that takes effect March 2026. The sector contributes 23.8% of manufacturing output and employs about 113,000 people directly, with roughly 67% of locally built vehicles exported — 63% of those to the EU and UK, both tightening emissions standards. Executives say the incentive cannot address unreliable electricity, weak charging infrastructure, scant consumer demand and policy uncertainty. Ford Africa President Neale Hill warned South Africa must not "get left behind." Toyota chose Thailand over South Africa for its electric Hilux, while Nissan exited local manufacturing this year. Industry leaders urge finalizing the APDP2 incentive review, cautioning that the real risk is next-generation platforms going elsewhere.