Patel summons car makers to East London briefing

The carmaking industry may get a clearer idea on Friday of what the government has in mind for electric vehicles (EV).

After minister in the presidency Khumbudzo Ntshavheni announced on Thursday that the cabinet had signed off a draft version of a long-awaited policy white paper, representatives of vehicle and components companies said they had been summoned to a briefing in East London on Friday with trade, industry & competition minister Ebrahim Patel.

The white paper, which is already two years overdue, is actually for new-energy vehicles (NEV), whose power may also come from hydrogen and other emissions-free sources. Ntshavheni, however, spoke only of EVs, reflecting the government’s preference for the local manufacture of batteryelectric vehicles, which rely exclusively on power from home or public charging points.

Ntshavheni said the EV transition will ensure the local motor industry remains technologically up to date.

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While many developed markets are encouraging the manufacture and sale of EVs as fast as they can, SA remains almost exclusively wedded to the petrol and diesel internal combustion engine (ICE).

Worryingly, more than 50% of all vehicles built in SA are exported to countries that have stated their intention to ban ICE technology.

Ntshavheni added that NEV activities should include local beneficiation of raw materials used in the manufacture of EV batteries so that SA “can be a full player in the EV value chain”.

The announcement is just another step in the process of creating a viable EV/NEV policy. Having published an NEV green paper discussion document in May 2021, the government promised a white paper later the same year but failed to deliver. More deadlines have since come and gone.

On November 1, finance minister Enoch Godongwana said he would announce details in his budget statement in February. Thursday’s announcement, and Friday’s meeting between Patel and industry leaders, will help to shape those details.

Patel’s office was approached for comment but none was forthcoming by the time of publication.