South Africa has set out proposed changes to its automotive industry support framework that would direct more assistance to electric-vehicle battery manufacturers.
The Department of Trade, Industry and Competition has published draft amendments to the Automotive Production and Development Programme Phase 2 (APDP2) to widen incentives for EV battery producers as the country aims to expand its position in the EV supply chain.
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Trade, Industry and Competition Minister Parks Tau released the draft amended APDP2 Regulations and invited public comment through the International Trade Administration Commission of South Africa (ITAC).
The draft amendments would add critical minerals used in EV battery production, including hybrid derivatives, to the list of materials that qualify as standard materials.
They would also extend eligibility to materials originating in the Southern African Development Community (SADC) region.
Under the proposals, the standard value added (SVA) for standard materials used in EV battery manufacturing would be fixed at 50% of the value of the standard material.
The current rate for other standard materials is 25%.
The proposed amendments would also revise broader provisions related to SVA and introduce further measures intended to support the development of a regional EV battery manufacturing industry.
APDP2 operates through rebates and refunds of customs duties under the Customs and Excise Act.
The programme currently provides support to vehicle and component manufacturers through the Production Incentive, the Automotive Investment Scheme, and the Volume Assembly Localisation Allowance.
In another regional development, Estonian ride-hailing company Bolt Technology has partnered with Chinese automaker Dongfeng Motor to launch an EV fleet in South Africa.
The fleet will be operated by Indian electric mobility company Yugo Rides and will initially start service in Cape Town.
Users will have access to two Dongfeng models, the Box hatchback and the higher-end 007.
