Impact of the budget speech on the future of electric vehicles in South Africa

The Volvo XC 40 P6 Recharge plugged in and charging.

The national government plans to produce electric vehicles to preserve South Africa’s new vehicle export market.

Plans to transition to electric vehicle (EV) production to preserve South Africa’s vehicle export market were briefly covered in the 2024 Budget Speech. SA primarily manufactures internal combustion engine (ICE) vehicles, with 75% of the country’s new vehicle exports heading to the UK and European Union (EU). However, these markets have committed to banning the sale of new fossil-fuelled vehicles in the future, in some countries, as early as 2035, meaning the loss of crucial export markets.