South Africa positions itself as a global hub for new energy vehicles, says Ramaphosa

President Cyril Ramaphosa says that with the electric vehicle white paper and the incentive programme, the country has committed to a stable, predictable and supportive framework for companies to be able to invest and grow in South Africa.

Speaking at the BMW plant in Rosslyn, Pretoria, with the theme “A strategic vision for South Africa’s automotive future”, he was quick to praise the company for the work they have been doing.

BMW South Africa manufactures the X3 range of SUVs, exporting them to more than 24 different countries around the world.

More importantly, they are the sole manufacturer for the BMW X3 plug-in hybrid.

Transformation

“We are on an exciting journey of transformation, change, and development in numerous ways, and your efforts have been pivotal in driving this transformation forward. 

“The automotive sector serves as the cornerstone of our industrial strategy, accounting for 4.9% of our GDP and directly supporting over 115 000 manufacturing jobs. Its impact extends far beyond these figures, affecting the livelihoods of more than half a million individuals throughout the value chain,” he said.

“South Africa stands as the 22nd largest vehicle exporter in the world, with key markets including the European Union, the United States, the United Kingdom, and several other countries. Moreover, the African continent, particularly within the SADC region, is emerging as an increasingly important export market.

“We have successfully positioned ourselves as a globally competitive hub for automotive manufacturing, and the BMW Group has played an essential role in this significant journey.”

Referring to New Energy Vehicles, Ramaphosa said: “The transition to green mobility and the electrification of vehicle production aligns with our global commitment to reducing emissions and supporting the shift towards a low-carbon, climate-resilient economy, and we are proud to be part of this important movement.

Ideally positioned

“We are truly encouraged by the significant milestones achieved by the BMW Group. As the shift towards battery electric vehicles, plug-in hybrids, and hydrogen mobility gains momentum, South Africa is ideally positioned as a vital global manufacturing hub for the future of mobility.

“We are dedicated to creating an enabling regulatory and policy environment that facilitates innovation and creativity, allowing companies like BMW to play a leading role in this sector. 

“Through initiatives like the Automotive Production Development Program, the recently introduced Electric Vehicle White Paper, and an accompanying incentive program, we are committed to establishing a stable, predictable, and supportive framework that encourages companies to invest, localise, and grow in South Africa.”

Opportunity

Ramaphosa added that the transition to NEVs offers an opportunity for the local component manufacturing sector, which has primarily focused on internal combustion engine (ICE) components.

“Given our substantial reserves of critical minerals, we have the potential to become a hub for processing and refining these minerals extracted from South African soil. Our goal is to enhance their value, allowing us to export finished products rather than just raw materials.

We are in the process of finalising targeted incentives aimed at promoting battery cell localisation, manufacturing electric vehicle components, advancing clean mobility initiatives, and fostering research and design - all of which are essential for our growth in this sector,” he said.

Trump tariffs 

Touching on the increased tariffs announced by US President Donald Trump, he admitted that it would have a huge impact, but failed to elaborate.

“The United States is a key market for our vehicle exports, and it further underscores the need for us to diversify our export base and to accelerate domestic value creation as well.

As we navigate the challenges of higher tariffs, it's crucial for us to keep our eyes and ears open to explore new markets for our vehicles. While it's encouraging that the X3 is being exported to Europe, we also need to focus on expanding into the African market.”

Speaking to the employees, the President said that the plant was a vote of confidence in their abilities.

“The production locally of the BMW X3 plug-in hybrid is a symbol of trust, a trust in the skills all of you have and a vote of confidence in our partnerships and our potential,” he concluded.