President Cyril Ramaphosa has said the government is determined to ensure there is an enabling regulatory and policy environment to capitalise on South Africa being well positioned as a key global manufacturing base for the mobility of the future.

“Through the Automotive Production and Development Programme and, more recently, the Electric Vehicle (EV) White Paper and incentive programme, we have committed to a stable, predictable and supportive framework for companies to invest, localise and grow in South Africa.

“Incentivising EV production for export and simultaneously supporting the growth of the local EV market is an imperative,” he said at the launch of automotive manufacturer BMW’s X-3 plug-in hybrid, at its plant in the Tshwane Automotive Special Economic Zone, in Rosslyn, on July 24.

The transition to battery electric vehicles, plug-in hybrids and hydrogen mobility is gathering momentum and the shift to green mobility and electrification in vehicle production is in line with commitments by countries to reduce emissions and support the transition to a low-carbon, climate-resilient global economy.

“The global shift to clean vehicles presents opportunities for the local component manufacturing sector, whose focus has been on internal combustion engine (ICE) components. With our significant reserves of critical minerals, we must become a hub for processing and beneficiation.

“We are finalising targeted incentives for battery cell localisation, EV component manufacture, clean mobility research and design, and critical mineral beneficiation,” he said.

South Africa is the twenty-second largest vehicle exporter globally, with our main export destinations being the EU, the US and the UK. The African continent is a growing export market, particularly within the Southern African Development Community region, he said.

“Many world-class vehicles are manufactured right here at this plant, including both ICE and hybrid models from the BMW X family, and now we have reached another milestone with the production of the BMW X3 plug-in hybrid EV,” he said.

The production locally of the BMW X3 plug-in hybrid was a symbol of trust. South Africa was greatly encouraged by the company ongoing investment as it strove to build a low-carbon economy of the future, he added.

Further, the automotive sector was a lynchpin of South Africa's industrial strategy. The sector contributed approximately 4.9% to GDP, and supported more than 115 000 direct manufacturing jobs and more than half a million across the value chain, he noted.

The Rosslyn plant is a testament to BMW’s longstanding presence in the South African market. This world-class facility was the first BMW plant to be built outside of Germany and has been at the centre of the group’s operations since 1973.

It also stood as proof of the BMW Group’s commitment to the South African economy by supporting its industrial development and national empowerment objectives, and driving innovation in the sector, Ramaphosa said.

“BMW’s presence in the country is one of mutual interest and shared value. The BMW team is building more than cars. It is building a legacy of excellence, inclusion and hope among South Africans,” he said.

ROSSLYN PLANT
BMW South Africa manufactures different drive train types and model variants. The company has invested R16.7-billion in its Rosslyn plant since 1996, particularly R4.2-billion in 2023 to modify the plant for production of the X3 plug-in hybrid electric vehicle (PHEV) model, Engineering News reported earlier this month.

BMW South Africa exclusively produces the X3 PHEV for the global market, exporting these vehicles and the petrol- and diesel-driven X3 models to about 40 countries.

The plant typically exports about 96% of the vehicles it produces, mostly to the UK, Germany and Italy, though it also taps into other markets, news organisation News24 has reported.

The plant's current capacity is 79 000 vehicles an year working in three shifts, five days a week, and with an extra Saturday shift, it reported.

Additionally, BMW South Africa CEO Peter van Binsbergen said that, owing to tariffs imposed on Canada by the US, the BMW Rosslyn plant would start to produce and export the X3 PHEV to the Canadian market. Previously, Canada had received the X3 produced in the US.