NAASA CEO: Why SA should accelerate its evolution to electric vehicle production
South Africa has identified three key priorities for climate action, one of which is the production of electric vehicles. However some have criticized the plan, citing the country's battle with electricity shortages and the high cost of electric vehicles. Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa joins CNBC Africa for more.
Fri, 29 Oct 2021 15:43:32 GMT
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AI Generated Summary
- South Africa identifies electric vehicle production as a key priority for sustainable mobility solutions and aligns with global emission standards to remain competitive in the automotive industry.
- Government commitment to supporting EV development is evident through initiatives like the Green Paper for new energy vehicles, fostering collaboration between stakeholders for a successful transition.
- Automakers such as Toyota, Mercedes-Benz, and Ford are actively investing in EV production, signaling a paradigm shift towards sustainable manufacturing practices and a greener automotive sector.
South Africa is making significant strides towards achieving its climate action goals, with the production of electric vehicles (EVs) being identified as one of the key priorities. The country aims to accelerate its evolution into electric vehicle production to meet the growing global demand for environmentally friendly transportation solutions. However, critics have raised concerns about the challenges posed by electricity shortages and the high cost of electric vehicles. Mike Mabasa, CEO of the National Association of Automobile Manufacturers of South Africa (NAASA), sheds light on the government's plans and the automotive industry's response to this transition. Mabasa highlights the government's commitment to supporting the development of EVs, citing the Green Paper for new energy vehicles announced by the Minister of Trade, Industry, and Competition earlier this year. The Green Paper outlines a strategic framework for the adoption of EVs in South Africa, signaling a concerted effort to embrace sustainable mobility solutions. Mabasa emphasizes the importance of collaboration between the government, industry stakeholders, and other key players to ensure a seamless transition to electric vehicle production. South Africa's status as a major vehicle producer further underscores the need for swift action in response to changing global emission standards. With a substantial portion of locally manufactured vehicles destined for export markets, the country faces mounting pressure to align with stricter emission regulations enforced by importing countries. As a result, the automotive sector is compelled to fast-track its shift towards electric mobility to remain competitive on the global stage. Infrastructure emerges as a critical concern in this transition, with the need for an extensive network of charging ports to support widespread EV adoption. Despite existing challenges in South Africa's power supply, efforts are underway to address infrastructure gaps and facilitate the seamless integration of electric vehicles into the transportation landscape. Several leading automakers have already signaled their commitment to the EV revolution, with notable announcements from industry giants such as Toyota, Mercedes-Benz, and Ford. Mercedes-Benz South Africa introduced a hybrid model earlier this year, signaling its foray into electric mobility solutions. Ford Motor Company made a significant investment in the production of its new-generation Ford Ranger at the Silverton plant in Pretoria, aligning with the industry's shift towards sustainable manufacturing practices. Local manufacturers are also actively engaging with global partners to incorporate EV technology into their production lines and future offerings. The automotive industry's proactive stance towards electric vehicle production aligns with South Africa's vision for a greener and more sustainable future. As the country navigates the complex challenges posed by climate change and evolving emission regulations, the transition to electric mobility represents a crucial step towards reducing carbon emissions and fostering environmental stewardship. With robust government support, industry collaboration, and strategic investments, South Africa is poised to accelerate its evolution towards electric vehicle production, paving the way for a cleaner and more sustainable automotive sector.