South Africa risks losing the bulk of its automotive exports unless the government implements policies to create an electric-vehicle manufacturing industry, according to Nissan’s Africa head.
Europe is the destination for about two-thirds of car exports from South Africa, which earned R202 billion from sending vehicles and components internationally in 2019. But with countries such as Germany moving toward mandating the use of cleaner cars, South Africa risks being left behind, Mike Whitfield, Nissan Africa’s managing director, said in an interview.
South Africa relies on the automotive industry for about 15% of its exports, and has lured major manufacturers such as Toyota and Volkswagen with a government to set up local plants. Yet the country remains a long way off introducing electric vehicles to its roads on any significant scale. While traditional gas and diesel-fueled cars can be imported for free, EVs attract a duty of as much as 25% and there are few charging stations.
The rest of Africa has also been slow to foster production, including in carmaking strongholds such as Egypt and Morocco, he said.One cause for optimism in Africa is that new car sales are expected to grow to as many as 5 million a year in 2035 from 1.2 million, and that could compensate for declines in the European export market, he said.
Nissan this month opened an assembly plant in Ghana, with components supplied by plants in South Africa, and is considering entering East Africa with a partner, he said.
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