BMW SA pushes ahead with electrification despite delays in government's NEV policy

BMW South Africa has reaffirmed its commitment to driving the country’s automotive sector into an electrified future — even as policy uncertainty threatens to slow down momentum across the industry.

- SIPHELELE DLUDLA

OVER the past few years, BMW South Africa invested R4.2 billion into upgrading its Rosslyn plant near Pretoria to produce the plug-in hybrid version of the BMW X3 -- the first NEV manufactured in South Africa for global export.

(GCIS)

In an exclusive interview with Business Report on Tuesday, BMW South Africa CEO Peter van Binsbergen said the government's delay in finalising and implementing the White Paper on New Energy Vehicles (NEVs) was holding back investment decisions for local automakers, warning that time is running out for South Africa to align with global trends.

South Africa's NEV White Paper, released in December 2023, outlines a 10-year strategy for the automotive industry to transition to electric vehicles (EVs). It outlines a roadmap for the local EV production ecosystem, developing charging infrastructure and battery value-chain development, and stimulating market demand through phased incentives and fiscal support.

“The lack of concretising this White Paper, the lack of adopting what the President [Cyril Ramaphosa] announced at SA Auto Week last year, is slowing down the transition,” said van Binsbergen.

“Many manufacturers are waiting for this updated paper to come out, which includes hybrids and incentives for consumers in South Africa to embrace NEVs. We are far behind the rest of the world embracing them locally. So it definitely is slowing down the market. If you ask the other brands, they'll tell you many of them are waiting for product decisions for the next product in their factories.”