There may be a small delay in the submission of South Africa’s draft strategy on electric vehicles to Cabinet, as the technology remains “unchartered territory”, says Department of Trade and Industry (DTI) automotives chief director Mkhululi Mlota.
The final draft position paper was to have been completed by the end of June, and then submitted for Cabinet consideration by the end of September – this according to the second version of the Industrial Policy Action Plan.
“The process of sourcing reliable data and generating appropriate and realistic ideas tended to be somewhat complicated. New information is constantly coming to the fore from the global arena,” notes Mlota.
“However, we are at a stage where we can begin to engage with some tangible proposals and, therefore, the delay might not be that significant.”
Mlota tells Engineering News Online that the draft strategy on electric vehicles is currently the subject of “internal interrogation” within the DTI.
“It is expected that senior management will only have an opportunity to further evaluate it in the next few weeks. The strategy will include elements of demand stimulation, operating regulations and investment support, among others.”
Mlota says the process of drafting the strategy has included the local automotive industry – “to a degree” – as well as other interested parties.
Current incentives in developed countries to stimulate electric vehicle demand include a 180% tax on traditional, larger vehicles in Denmark, and zero percent on electric vehicles. In Norway, all electric vehicles are exempt from sales tax, annual road tax, all public parking fees and toll payments.
The UK offers a 5 000 pound grant on the purchase price of an electric vehicle.