The Environment

Global warming, together with country and regional emissions legislation, has accelerated the OEMs’ focus on alternative drive methodologies globally.

 

The key objective in the global automotive environment is to establish a drive system which will emit the lowest overall level of emissions. Ready or not, the future of mobility has arrived, complete with its own set of unique challenges and opportunities, as the global automotive industry is starting to face more sustainability-related regulations in its supply chains. The global automotive industry at present is at an important crossroad. OEMs will need to accelerate the development of a new NEV business, while simultaneously running the legacy ICE vehicle business. To achieve this business-model duality, OEMs, as well as their component suppliers, will need to make dramatic changes and fundamentally reshape their business models, configurations, capabilities, and corporate culture. To meet the depth and breadth of challenges surrounding performance improvement and the need to transform, the industry will likely need to reorganise and broaden its traditional operating model to accommodate new business-creating products and services and attract the emerging skills of the workforce.

It is inevitable for South Africa to shift from internal combustion engine (ICE) vehicles to NEVs in efforts to not just retain and safeguard its significant export business, but to successfully grow the domestic automotive industry. On 18 May 2021, the DTIC published an Automotive Green Paper on the advancement of new energy vehicles in South Africa. The Green Paper highlighted that the NEV challenge in South Africa is two dimensional, encompassing both demand and supply side considerations, and that it is an inevitable transition for the South African automotive industry, as it will be the future driving technology adopted by the global automotive industry.

The naamsa NEV Thought Leadership Paper provides a clear policy foundation to coordinate a long-term strategy via a DTIC NEV White Paper to position South Africa at the forefront of advanced vehicle and vehicle component manufacturing, complemented by consumption support. The Thought Leadership Paper covers in detail the path to new energy vehicles (NEVs), global climate change commitments, South Africa’s just transition, the environmental, social and governance metrics, the South African automotive industry in perspective, global automotive environment and trends, and the NEV transitional requirements.

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