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The co-CEO of Mercedes-Benz’s local unit stated on Wednesday that South Africa must act quickly to regulate in order to increase demand for electric cars (EVs), as the nation’s auto sector runs the risk of becoming obsolete in the global market.
Three half of all vehicles produced in South Africa are exported.
90% of Mercedes-Benz’s total production in South Africa is exported, mostly to Europe, where new gasoline and diesel vehicle sales are scheduled to end in 2035.
Meanwhile, South Africa has delayed its EV policy document by two years. According to the government, it will be released this year.
“The worldwide train, or EV shift, is pulling out of the station. South Africa faces the risk of falling behind if it doesn’t board the train, according to Mark Raine, co-CEO of Mercedes-Benz Cars South Africa, who spoke with Reuters in an interview.
In addition, he stated that a “soonest” implementation of the policy is necessary because “a concrete EV Policy is definitely required and would support the inevitable evolution of the automotive industry to electric vehicles.”
In particular, South Africa must increase domestic demand by lowering the import tariff on EVs, establishing a broad network of EV charging stations, and funding the development of skills required for new ecosystem that EVs bring.
The German automaker intends to phase out gasoline and diesel vehicles from its factories worldwide beginning in 2030, but the transition in South Africa is proving difficult given the lack of a strong local ecosystem.