EV Surge – South Africa is entering a bold new era of automotive transformation. With climate goals accelerating and global markets rapidly embracing electric mobility, the South African government has officially unveiled an ambitious target—to fully transition to electric vehicles (EVs) by 2035. As part of this sweeping plan, a massive R1 billion in production incentives is now being unlocked for local and international manufacturers, starting this quarter. This initiative, driven by the Department of Trade, Industry and Competition (DTIC), is aimed at turning South Africa into a leading EV manufacturing hub on the African continent. The government has set the tone for this shift by offering tax breaks, rebate packages, infrastructure grants, and research subsidies to automakers who commit to EV production and R&D in the country. What makes this announcement especially significant is its timing. With domestic electricity reliability slowly improving and global EV demand surging, South Africa sees a unique opportunity to align its industrial base with clean energy goals, job creation, and export expansion. Moreover, the move signals a long-awaited policy certainty for investors, who have been hesitant in the absence of a national EV roadmap. This article breaks down the full scope of the plan, who qualifies for the R1 billion boost, what this means for consumers, and how it fits into the country’s broader climate and trade ambitions.
Key Highlights of the EV Surge
The new policy framework includes several immediate and long-term actions designed to facilitate South Africa’s complete shift to EVs.
- Target: 100% EV production & registration by 2035
- R1 billion incentive fund launched this quarter
- Local manufacturing of EV batteries to be subsidized
- Special tax incentives for companies shifting from ICE to EV
- Public charging network expansion under SANEDI
- Import tax reductions for essential EV components
- EV training centers to be opened in 5 provinces
- Full integration of EVs in public transport by 2032
Major Automotive Manufacturers Involved
Several global and local manufacturers have already signaled participation or interest in the incentive scheme.
| Manufacturer | EV Plans for SA | Facility Location | Investment Pledged | Timeline | Battery Production | Employment Impact |
|---|---|---|---|---|---|---|
| Volkswagen | Launch 3 EV models by 2027 | Eastern Cape | R4.3 billion | 2025-2027 | Under consideration | 4,000 jobs |
| BMW | Expand iX3 line & battery plant | Rosslyn, Gauteng | R2.1 billion | 2024-2026 | Yes | 3,200 jobs |
| Ford | Mustang Mach-E assembly planned | Silverton, Pretoria | R3.6 billion | 2025-2027 | No | 2,800 jobs |
| Mahindra | Small EV rollout for taxis | Durban | R1.4 billion | 2024-2025 | Planned | 1,600 jobs |
| Toyota | Hybrid & EV plant upgrade | Durban | R5 billion | 2024-2028 | Yes | 3,500 jobs |
| Nissan | EV SUV development partnership | Coega | R2 billion | 2026-2028 | In progress | 2,200 jobs |
| Stellantis | EV production by 2026 | East London | R1.8 billion | 2025-2027 | Under discussion | 1,900 jobs |
How the R1 Billion Incentive Will Be Distributed
The Department of Trade, Industry and Competition (DTIC) has laid out a structured incentive roadmap.
Categories of Support Available This Quarter
- R&D Grants for EV design and innovation (up to R50 million per company)
- Manufacturing facility upgrade assistance (up to 30% cost coverage)
- Tax rebates on EV battery imports
- Export promotion credits for EV-related output
- EV component supply chain localization bonuses
Eligibility Criteria for Companies
- Must be registered in South Africa with tax compliance
- Should commit to local EV production or R&D
- Need to create at least 150 new jobs within 24 months
- Investment threshold of minimum R50 million
- Reporting of environmental impact metrics is mandatory
Timeline for Application and Disbursal
| Phase | Action | Deadline |
|---|---|---|
| Expression of Interest | Submit proposal to DTIC | 31 August 2025 |
| Shortlisting | DTIC Evaluation | 10 September 2025 |
| Formal Application | Submit detailed business plan | 25 September 2025 |
| Initial Disbursal | 50% fund release | From October 2025 |
| Completion Audit | Final review of execution | Within 12 months |
| Final Disbursal | Remaining 50% post audit | From October 2026 |
What This Means for Car Buyers and Taxi Owners
For ordinary citizens, the transition promises cleaner air, lower fuel costs, and modernized transport options. However, affordability is key.
- Government plans to subsidize entry-level EVs for low-income users
- Existing taxi operators can receive up to R100,000 for switching to electric minibus taxis
- Battery leasing options being developed to reduce upfront costs
- Charging station expansion will prioritize taxi ranks, malls, and highways
Infrastructure Rollout and EV Charging Stations
Charging infrastructure remains the cornerstone of successful EV adoption. The government is working with public and private partners.
- SANEDI to install 1,000 new fast-charging points by end of 2026
- Partnership with municipalities to offer curb-side EV charging
- Incentives for shopping centers and petrol stations to include EV chargers
- Solar-powered EV charging pilot in Northern Cape starting September 2025
Charging Infrastructure Development Roadmap
| Year | Targeted New Chargers | Key Regions | Lead Partners | Type |
|---|---|---|---|---|
| 2025 | 300 | Gauteng, Western Cape | GridCars, SANEDI | Fast DC |
| 2026 | 500 | KwaZulu-Natal, Limpopo | PlugPoint, Nersa | Mixed |
| 2027 | 1,000 | National roll-out | Eskom, City Power | Ultra-Fast (DC) |
| 2028 | 2,000 | Township zones & Freeways | Public-Private Alliance | AC + DC Hybrid |
EV Training, Skills Development, and Labour Upskilling
To support this transition, the Department of Higher Education will roll out special EV training programs.
- 5 technical colleges being revamped for EV technician courses
- 8,000 students to be trained by 2026
- Certification for EV battery handling and recycling
- Online modules for existing mechanics to cross-train
- Special curriculum for female technicians in underserved areas
Export Strategy and Trade Integration
With the EU mandating EV-only sales by 2035, South Africa aims to be a key supplier.
- Duty-free access under SADC and AfCFTA trade zones
- Negotiations with EU for EV trade window extensions
- Plans to launch EV export corridor through Durban port
- Focus on exporting entry-level electric SUVs and battery packs
Key EV Export Targets
| Market | Vehicle Type Focus | Export Volume Goal (2030) | Trade Route |
|---|---|---|---|
| European Union | SUVs, sedans | 100,000+ units annually | Durban > Rotterdam |
| Middle East | Light commercial EVs | 50,000 units annually | Durban > UAE Ports |
| SADC Region | Taxis and compact EVs | 200,000 units annually | Land & Rail Links |
| India | Battery components | 20,000 battery packs/year | Durban > Mumbai Port |
Departmental Contact Details
If you are a manufacturer, investor, or individual looking to understand or apply for the new EV incentives, here are the official contact points:
Department of Trade, Industry and Competition (DTIC)
- Website: www.thedtic.gov.za
- Email: [email protected]
- Phone: 0861 843 384
- Office Address: 77 Meintjies Street, Sunnyside, Pretoria, 0002
SANEDI – South African National Energy Development Institute
- Website: www.sanedi.org.za
- Email: [email protected]
- Phone: 011 038 4300
National Treasury – Green Industrial Incentives Desk
- Email: [email protected]
South Africa’s R1 billion electric vehicle push isn’t just about mobility—it’s about building a cleaner economy, creating thousands of jobs, and regaining industrial competitiveness. As 2035 approaches, the race is on for automakers and citizens alike to plug into the future.
FAQs of EV Surge
1. When will these EV incentives officially start?
The incentives began rolling out in July 2025 and are open for application until 31 August 2025.
2. Can small or new companies also apply for the EV fund?
Yes, as long as they meet the minimum R50 million investment and job creation criteria.
3. Will EVs become cheaper for buyers in South Africa?
Yes. Government plans to subsidize EVs, especially entry-level models, from 2026 onwards.
4. How will electricity shortages impact EV usage?
EV planning includes investment in solar-powered chargers and battery storage to reduce grid pressure.
5. Are hybrid vehicles also included in this policy?
Yes, plug-in hybrids are eligible for partial incentives, especially in rural market adaptation programs.