At every turn, we hear that the future of the automotive industry is electric. On a global level, major automotive manufacturers are publicly and boldly aligning with the goals set out by the Paris Agreement, and committing to ambitious targets on the road to lowering emissions and environmental impact. Most manufacturers have already introduced electric or hybrid vehicles in European markets, where governments have committed to equally ambitious environmental goals. Undoubtedly, this is a time of industry transformation.
In South Africa, however, this transformation is happening at a significantly slower pace. Rome was perhaps not built in a day, but electrification seems to be an abstract and elusive goal, without sufficient movement to promise progress in the near future.
It has become easy to blame the parastatal responsible for most power supply in South Africa, and this is certainly a factor; not only has the electricity supply been inconsistent in the past, it is also generated from a source that contradicts the environmentally sustainable benefits of electric vehicles. But this is not the only obstacle.
The challenge with e-mobility in South Africa is two-fold: product and perception. The former is already being addressed by automotive manufacturers in a number of ways, chiefly in their continuous engagement with government when it comes to policies that enable and even encourage the establishment of electric mobility in our country. These policies stand to, in time, make electric vehicles more affordable and accessible for South African customers through potential incentives for manufacturers, which filter down to the end cost on the showroom floor. Therefore, government’s buy-in is critical.
Several automakers have already shown their interest in bringing e-mobility to our shores, not only through government lobbying but through the introduction of electric vehicles in some form. For example, one of our member companies, Volkswagen Group Africa, recently introduced a test fleet of their ID.4 model locally. Ford plans to bring an all-electric SUV to South Africa in 2025.
Some manufacturers are also forging partnerships to grow the charging infrastructure network on our roads. In fact, such partnerships may be the solution that will pave the way for e-mobility in South Africa, as it allows different parties to minimise their investment while providing the various elements – from vehicle to charger – necessary for EV buyers.
Even with all these elements in place, manufacturers face a final challenge: the perception of EVs in a market that is unfamiliar with the products and perhaps wary of the new technologies. An Exporters member company, Microcare, plans to play their part in alleviating this customer anxiety locally. Microcare, which manufactures EV charging stations, will host an EV experience on 5 September to educate guests on EV technology, range capability, and the benefits of owning an electric vehicle, among other topics.
Make no mistake, the road to an electrified future may still be a long one – but with all stakeholders across industries playing their part, we can still build that sustainable future for South Africa.
Quintin Levey, Exporters Eastern Cape Chairman
The Herald – Let’s Talk Exports – Published August 2024