Europe’s recent softening of its zero-emission vehicle policy should not be viewed as offering a lifeline to the South African automotive industry, warns The Electric Mission executive director Hiten Parmar.

The revised proposal, which still needs to be accepted by the EU Parliament, proposes that 90% of new vehicles sold in the EU will have to be zero-emission vehicles by 2035, instead of the previous 100%.

The 10% margin is for manufacturers in the EU to catch up to electric vehicle producers in other parts of the world, such as China, says Parmar, and not in aid of importers.

In the UK, the plan is to ban internal combustion engine (ICE) sales in 2030, and hybrid sales in 2035, in favour of zero-emission vehicles.

South Africa’s auto industry last year exported 411 000 new vehicles, with 81% of this number shipped to the combined EU/UK market – which means that the local assembly industry is highly exposed to policy changes in these markets.

South Africa simply has to transition to manufacturing battery electric vehicles (BEVs), says Parmar.

South Africa’s auto sector produces predominantly ICE vehicles, followed by some hybrids, and then one or two plug-in hybrid models. There is no BEV assembly.

BEV sales last year exceeded the number of new ICE sales in Europe as 2035 looms, posting the highest figures yet in December, notes Parmar.

“International regulatory measures are putting pressure on South Africa’s industrial transformation into the local manufacturing of zero-emission vehicles and their associated components.

“There are thousands of jobs on the line across the value chain of our automotive industry.

“The significance of the 2035 timeline in Europe requires strategic intervention on the part of South Africa’s supply- and demand-side policies,” he notes.

“This is a critical opportunity to take action and align the South African automotive industry with key markets.

"Fuel-efficiency and vehicle-emission standards can, for example, set fleet-wide performance benchmarks, encouraging vehicle manufacturers to innovate – whether through more efficient combustion technology, or a faster transition to zero-emission vehicles,” says Parmar.

He adds that the automotive sector is a cornerstone of South Africa’s economy, but that a lack of clear government policy and support are endangering its future.

In January, Morocco achieved an industrial milestone as it became Africa's largest automaker, overtaking South Africa.

“Driven by rapid industrial expansion, high-tech investments and renewable-energy infrastructure, Morocco’s automotive sector experienced a 79% increase in automotive production alone,” says Parmar.

* The Electric Mission is a not-for-profit organisation based in South Africa championing the advancement of the electric mobility ecosystem.