DAVID FURLONGER: Government excuses over EV policy delay don’t wash

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DAVID FURLONGER: Government excuses over EV policy delay don’t wash
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It’s easy to blame to Eskom and the electricity crisis, but the uncertainty leaves the motor industry in limbo

EVs are expected to make up more than half of total worldwide vehicle production by 2030. Picture: REUTERS

That dog-eat-dog attitude still exists today, though on a more “civilised” footing. While there is more commonality among manufacturers and importers on what is best for the industry, everyone is looking for a market advantage. It’s hardly surprising. Relative to its size, South Africa is arguably the most competitive new vehicle market in the world. Dozens of brands offer hundreds of car and bakkie variants. The truck market is no less intense.

I’m not going to bore you with policy detail; suffice to say that more than half the vehicles built in South Africa are exported to the UK and the EU. These markets are preparing to outlaw the sale of vehicles using petrol and diesel internal combustion engines , which is virtually all the South African motor industry makes.

That’s why local manufacturers and importers alike are begging the government to help narrow the price gap. They could start, says Kia South Africa MD Gary Scott, by reducing the 25% duty on imported EVs to the 18% imposed on ICE vehicles. Ad valorem and income tax “tweaks” can also encourage buyers.

Patel gives more reasons for the policy delay. They include the need to study a recent EU decision to allow the continued use of ICEs using synthetic petrol and diesel substitutes. These carbon-neutral alternatives are known as e-fuels. Patel says Sasol has been asked if it can produce them.

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