Govt intervention needed to make electric cars more accessible in SA

The National Association of Automobile Manufacturers of South Africa says consumer incentives will go a long way in making electric vehicles more affordable.

Africa Melane speaks to National Association of Automobile Manufacturers of South Africa CEO, Mikel Mabasa.

naamsa says the government’s refusal to consider consumer incentives to make electric vehicles more affordable for South Africans is “counterproductive”.

As electric vehicle sales boom across the world, various governments have moved to offer consumers incentive programmes such as tax breaks to encourage more people to get in on the market.

Mabasa says our government seems to be more focused on the production aspect of electric vehicles so it is able to export, instead of appealing to South Africans.

He says this could deter other manufacturers from investing in local production.

“If you sell a product, you need to encourage people to buy that particular product so that we are able to make sure that the product we are producing [locally] is affordable and people are also able to transition.” Mikel Mabasa, CEO – naamsa

You cannot expect the industry to manufacture a product it cannot sell to its own people, he says.

Incentive programmes only support the introductory phase of electric vehicles so that it is able to stimulate demand.

“Once the switch has been made, the market obviously takes over and the market will then dictate pricing.” Mikel Mabasa, CEO – naamsa