South Africa's car exports face an EV reckoning

South Africa introduced a 150% tax deduction for electric and hydrogen vehicle production in March 2026, but executives warn the country could lose future model allocations to Asia due to unreliable electricity, weak charging infrastructure and no consumer EV incentives. Autos account for 23.8% of manufacturing output and 113,000 jobs, with 67% of vehicles exported, yet new-energy vehicles are just 2.8% of domestic sales.

• 150% tax deduction for EV and hydrogen vehicle production took effect in March 2026
• Autos contribute 23.8% of manufacturing output and 113,000 direct jobs
• 67% of locally built vehicles are exported, 63% of those to the EU and UK
• New-energy vehicles are only 2.8% of South Africa's new car sales