Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Treasury backs down on crypto rules after 'thousands' of comments - Enoch Godongwana

      Treasury backs down on crypto rules after ‘thousands’ of comments

      21 October 2026
      Discovery ranks cybercrime as its top risk, citing frontier AI

      Discovery ranks cybercrime as its top risk, citing frontier AI

      21 October 2026
      Godongwana cuts fuel levy again, with diesel getting the bigger break

      Godongwana cuts fuel levy again, with diesel getting the bigger break

      21 October 2026
      Bolt EVs hit Sandton and the OR Tambo airport run

      Bolt EVs hit Sandton and the OR Tambo airport run

      21 October 2026
      Treasury puts R150-million behind MyMzansi government app - Enoch Godongwana

      Treasury puts R150-million behind MyMzansi government app

      21 October 2026
    • World
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
      Apple's new HomeView smart home hub

      Apple takes another shot at the smart home

      13 October 2026
      AI is now holding up the world economy, says IMF

      AI is now propping up the world economy, says IMF

      12 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Watts & Wheels » No immediate plan to cut EV taxes in South Africa

    No immediate plan to cut EV taxes in South Africa

    South African consumers may have to wait much longer for the price of electric cars to come down.
    By Sandra Laurence5 December 2023
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    South African consumers will have to wait longer for the price of electric cars to come down after the trade minister kicked the issue into touch.

    Trade, industry & competition minister Ebrahim Patel said changing customs duties at this stage is unlikely to affect the local production of electric vehicles (EVs) for export.

    The news is likely to disappoint the motoring industry, which has been lobbying government for years to cut the import duties on EVs, which are significantly higher than for vehicles with internal combustion engines. Governments in many other markets have moved to incentivise the sale of EVs; in South Africa, the opposite is true.

    We will talk to the industry from time to time to decide on the optimal moment to change import duties

    “At an appropriate point in time, we will look at that as a measure,” Patel said on Monday at a briefing on the release of government’s long-awaited white paper on EVs.

    Government, Patel said, is looking at supporting the construction of “phase-one production facilities in South Africa” rather than providing tax incentives to consumers to buy EVs.

    The minister said it is “not smart given the grid challenges we face” in delivering reliable electricity. “We will talk to the industry from time to time to decide on the optimal moment when we make a change to the import duties,” he said.

    Government’s goal is to “ensure that the country forms part of the global shift from internal combustion engines to electric vehicles and supports investment in new and existing manufacturing plants to produce electric vehicles”, Patel said.

    Initial focus

    The initial focus of the transition to EVs will be on export markets as regulators in Europe move to prohibit internal combustion engine (ICE) vehicles.

    The white paper reiterated that the transition to EVs is urgent given the speed at which markets are developing and the long lead times for investment decisions.

    “Attracting investment requires a technology-agnostic approach, including embracing a range of clean energy sources; and investment will be needed to boost production,” the paper stated.

    Read: Tesla gearing up to build sub-R500 000 electric car

    “Solutions must be cost-effective and fiscally sustainable, while localisation of the auto supply chain is essential and must reflect the need for a just transition.”

    Patel said he anticipates the first EVs being produced in South Africa by 2026, although some original equipment manufacturers are already producing hybrid vehicles.

    South Africa likely to produce its first electric car in 2026
    Ebrahim Patel

    To support EV production, there must be increased investment and funding, including incentive support, which he said will be announced in new guidelines.

    “Higher levels of investment funding are intended to catalyse automotive assembly and component manufacturing, including the development of a regional electric battery value chain; raw material refining; battery active materials and component production; and cell manufacturing,” the white paper stated.

    It also promises:

    • A temporary reduction on import duties for batteries in vehicles produced and sold in the domestic market to improve cost-competitiveness;
    • Maintaining a duty-free export market for vehicles and components produced in South Africa to support the industry;
    • Tax incentives to deepen domestic value addition;
    • Commercialising of green hydrogen production in South Africa;
    • Energy reforms, including interim solutions for energy in partnership with industry;
    • Implementing reforms to network industries, including freight rail and ports;
    • Refurbishing the rail line between Gauteng and Ngqura to improve overall cost competitiveness; and
    • Developing an EV certification programme in collaboration with industry for skills development.

    To promote a South African market for EVs, the white paper suggests:

    • Fleets transitioning to South African-produced new energy vehicles, including government-owned public transport and corporate fleets;
    • Scaling up investment in charging infrastructure;
    • Localising charging components and infrastructure;
    • Supporting increased grid capacity to facilitate uptake of EVs;
    • Consumer incentives for adopting EVs; and
    • Evaluating economic regulation on EV charging.

    For the policy to be successful, Patel said funding will be critical, with private capital and industry supporting government to finance it. He said the purpose of the white paper is to provide a public policy commitment that goes beyond a single budget cycle or the announcement of one ministry. Further details of measures to support EV production will be provided by the minister of finance in the 2024 budget speech, he said.  – © 2023 NewsCentral Media

    Get breaking news alerts from TechCentral on WhatsApp

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Ebrahim Patel
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleFintech boom in Nigeria
    Next Article Energy, logistics crises are kneecapping South Africa’s economy

    Related Posts

    Takealot Group CEO Frederik Zietsman

    New trade minister must have strong tech focus: Takealot

    25 June 2024
    tax

    Sars takes the shine off Shein

    10 June 2024
    Eskom breaks ground on R1.2-billion Lethabo solar plant

    SA may approach WTO over EU carbon border tax

    23 May 2024
    Company News
    Innovex 2026: taking opportunity to where potential lives

    Innovex 2026: taking opportunity to where potential lives

    21 October 2026
    How to choose a .co.za domain without paying more later

    How to choose a .co.za domain without paying more later

    20 October 2026
    Winners, from left: Zandile Monaisa (Rand Refinery), Sibongakonke Kheswa (PSG Capital), Stefan Links (Forestry South Africa), Thabang Modiba (Mondelez International), Charmaine Ncube (Razor PR), Shaun Burger-Smal (Bestmed Medical Scheme), Nandipha Ngcobo (Transnet), Tracy Mulwela (Vodacom), Cheryl-Lynn Freeman (Mzansi Business Services), Yasheen Harrielall (Zutari), Valentine Mabaso (Taonga Business Group) and Thabang Thlaku (African Rainbow Minerals). Image: Rising Star Awards

    Celebrating South Africa’s rising stars: the leaders shaping what comes next

    19 October 2026
    Opinion
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026
    When a machine can choose, who does it become? Fanie van Rooyen

    When a machine can choose, who does it become?

    9 October 2026
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Treasury backs down on crypto rules after 'thousands' of comments - Enoch Godongwana

    Treasury backs down on crypto rules after ‘thousands’ of comments

    21 October 2026
    Discovery ranks cybercrime as its top risk, citing frontier AI

    Discovery ranks cybercrime as its top risk, citing frontier AI

    21 October 2026
    Godongwana cuts fuel levy again, with diesel getting the bigger break

    Godongwana cuts fuel levy again, with diesel getting the bigger break

    21 October 2026
    Bolt EVs hit Sandton and the OR Tambo airport run

    Bolt EVs hit Sandton and the OR Tambo airport run

    21 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter