BMW Group South Africa CEO Peter van Binsbergen has cautioned that government’s slow pace in finalising an electric vehicle policy is putting the country’s automotive sector on the back foot just as export markets accelerate towards zero-emission mobility.
Speaking on the TechCentral Show in an episode to be published this week, Van Binsbergen said South Africa needs “decisions now” to protect domestic manufacturing and secure its place in global supply chains as Europe and the UK move to end sales of new combustion-engine cars in the next decade.
“We’re optimistic, but I’m not holding my breath,” he said. “There’s been a lot of talk and not enough action.”
While BMW has operated its Rosslyn plant north of Pretoria for 52 years and continues to invest in it, Van Binsbergen warned that domestic sales of locally manufactured vehicles are declining as imports gain share. That shift, he said, directly impacts employment.
“We invest in transforming the country and playing a part in the solution. But as domestic sales decline and shift towards imported vehicles, jobs go with them.”
He stressed this isn’t only a “China issue” or about consumer choice at the low end; rather, it’s about ensuring the policy environment nudges pure importers to build capacity locally. “The seven OEMs (original equipment manufacturers) here today won’t get us to 1% of world production on their own. New entrants need real incentives to localise.”
Neue Klasse
Van Binsbergen outlined a package approach, saying there needs to be reform in the use of rebates to stabilise prices and strengthen local producers’ competitiveness; there needs to be a structure that raises the hurdle for pure import playbooks; and investors must be confident their plants can operate competitively (including getting access to well-priced and reliable electricity). “The goal is to protect the consumer and bring jobs. It has to be a coherent package,” he said.
BMW recently invested about R4.2-billion in retooling Rosslyn for the latest X3, including a major “electrification of the plant”. The facility now builds multiple powertrains on a single line, notably the X3 30e plug-in hybrid, for which South Africa has sole global production allocation, and the X3 30d for export.
Read: South Africa and Europe must forge new EV value chain, says BMW boss
On fully electric models, BMW’s “Neue Klasse” era is the next big step. The first of these cars – an all-new, electric-only take on the X3 class – is designed “electric first, digital first” with around 30% more range and 30% faster charging versus today’s tech. Van Binsbergen said BMW expects to bring this model to South Africa in about a year’s time.
Pure EVs remain a single-digit share of BMW’s local sales. Plug-in hybrids are already above 10% of the mix, and Van Binsbergen thinks that makes sense for South Africa’s current realities: long-distance driving, uneven public charging and many one-car households. “In the week, you commute fully electric; on the weekend you fire up the engine and don’t worry about range. It’s perfect for South Africa, actually.”
He expects the EV mix to rise as real-world range approaches 800km on higher-end models and high-power charging (think 400kW on 800V systems) becomes widely available. “Stop for a coffee and a hamburger and your car’s full again – but only if the charging tech is there.”
Asked whether South Africa should chase full battery-cell manufacturing, Van Binsbergen urged a staged approach. “Start at the beginning of the value chain,” he said – beneficiation of local minerals and precursor materials using abundant wind and solar. Jumping straight to cell production is a “massive leap” given OEM-specific chemistries and the scale required.
Read: BMW strikes back at Tesla
BMW continues to pilot hydrogen fuel-cell technology – including local demonstrations of the hydrogen-powered X5 model – but Van Binsbergen called it a distant proposition for passenger cars. The tipping point, he said, will likely come from commercial vehicles, where battery weights are impractical and quick refuelling is critical. “If we get the commercial space onto hydrogen, the infrastructure case follows.” — © 2025 NewsCentral Media
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