Gqeberha can become electric vehicle hub, says industry body

Eastern Cape department of economic development, environmental affairs and tourism head Mickey Mama and electric vehicles advisor Carel Snyman and his BMW i3 outside the conference at the Nelson Mandela Bay Stadium on Tuesday
MAKING INROADS: Eastern Cape department of economic development,  environmental affairs and tourism head Mickey Mama and electric vehicles advisor Carel Snyman and his BMW i3 outside the conference at the Nelson Mandela Bay Stadium on Tuesday
Image: GUY ROGERS

With a bit of foresight and clever positioning, Gqeberha can establish itself as the main harbour for exporting and importing electric vehicles.

In doing so, it could create 2,000 jobs,  the National Association of Automobile Manufacturers of SA says.

Tshetlhe Litheko, an executive for transformation and public policy at the association, said on Tuesday there were about 12-million vehicles on SA roads,  with 600,000 new ones having been added in the 2022/2023 financial year.

“Of that number, there are just 4,000 new energy vehicles (EVs).

“If we are going to grow our electric vehicle industry in SA, we need to increase the number of electric vehicles on our roads.”

He said electric vehicles were now being imported in “dribs and drabs” through Durban. 

“If Gqeberha can establish the necessary homologation infrastructure then you can establish this city as a niche for importing and exporting electric vehicles.

“The big carrot of course is reducing greenhouse gases and addressing climate change but you can create a financial incentive as well by doing something creative with import tariffs — and with export tariffs for when we start to manufacture and export our own electric vehicles.

“You could create 2,000 jobs by establishing an electric vehicle import-export hub in this way.”

Homologation must be completed successfully before a vehicle is allocated a National Traffic Information System number, which permits the manufacturer or importer to offer it for sale.

No vehicle may be sold or registered and licensed unless this number has been allocated by the National Regulator for Compulsory Specifications.

Litheko was speaking at the Electric Vehicle Round Table Indaba at the Nelson Mandela Bay Stadium organised by the Eastern Cape branch of the Automotive Industry Development Centre and the Eastern Cape Socio-Economic Consultative Council.

Premising the debate was the October 2022 announcement by the European Union — the biggest buyer of SA-manufactured cars — that from 2035 it will not be registering any more internal combustion engine cars on its roads.

Department of trade and  industry automotives chief director Mkhululi Mlota said the narrative that nothing was happening to develop the electric vehicle industry in SA was incorrect.

Work was being done on several fronts including building skills and investigating the beneficiation of minerals to establish a local electric vehicle battery manufacturing industry.

Pressed on when the government would announce the long-awaited policy for electric vehicles, he said this should happen by April.

Volkswagen SA (VWSA) electric vehicle project lead Lelo Mdhladhla said transitioning to electric vehicles was inevitable if SA wanted to secure its future in vehicle manufacturing, continuity of employment in the industry and global competitiveness.

He said to fuel electric vehicles with electricity from coal-fired plants would be counter-productive in terms of efforts to reduce carbon emissions.

“For that reason, within our plant, we have taken steps to reduce Eskom power by installing roof-top solar.

“As an industry, we also collaborate with Nelson Mandela Bay Business Chamber on a programme where a group of companies purchases renewable power at scale leveraging off collective consumption.”

He said VWSA needed policies that would encourage original equipment manufacturers and suppliers to invest in key industries to support the adoption of electric vehicles.

“We also need a greater share of renewable energy from Eskom and independent power producers for charging electric vehicles.”

Electric vehicle adviser Carel Snyman said he had driven down to Gqeberha from his home in Midrand, Gauteng and had recharged his BMW i3 electric vehicle at Ventersburg, Bloemfontein, Colesburg, Graaff-Reinet and Jansenville.

“It cost me R847 against R2,475 that it would likely have cost me in a petrol-driven BMW 3 Series.

“For a fleet of five million cars that’s R22.5b against R168.75b — so besides the reduction in greenhouse gases that’s a massive saving.

“And a reduction in transport costs means more money available to the SA economy and the opportunity to grow the local energy industry and create jobs.”

Snyman said he had enjoyed the drive down to the coast travelling at a sedate 100km/h and without the roar of a combustion engine.

“It was peaceful. Driving an electric vehicle makes me appreciate my surroundings more.”

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