Toyota intends to produce electric vehicles in South Africa

Toyota South Africa Motors (TSAM) aims to manufacture electric cars (EVs) in South Africa and export them to worldwide markets, with CEO Andrew Kirby stating that the government finalising its new energy vehicle (NEV) policy is critical to the company's sustainability.

 
According to him, TSAM exports 44% of its production output to Europe, and this is not a market the firm can afford to lose. He stated that TSAM's objective is to begin producing EVs in South Africa, referring to the recent Euro 7 emission standard announcement.
 
We know that the move [to electric transportation] in Europe will be swift, and that if we want to keep those exports, we will have to adjust to producing either a low or zero emission Hilux. That is where we are under pressure.
 
In May 2021, Minister of Trade, Industry, and Competition Ebrahim Patel released a Green Paper on the advancement of new energy vehicles in South Africa. The stated goal was to complete the plan within 90 days so that policy ideas may be brought to cabinet for approval by October 2021. That goal was missed, and the administration has yet to finalise its policy.
 
According to Kirby, Patel stated that the SA automobile industry could expect a declaration in the Budget address. "We're excited to explore what that entails and whether it can help us find a way to speed our transition [to electric transportation] as a country, and certainly as a corporation," he said.
 
The objective is that the industry would be encouraged to expedite the localisation of NEVs, especially by attempting to make NEVs - notably plug-in hybrids, batteries, and fuel cell cars - more inexpensive and accessible in South Africa.
 
Kirby said this is vital to allow the industry to develop the market for NEVs "so we can justify investing in these cars". While battery electric cars may be the answer for some consumers in some sectors, another technology may be the better option in others.
 
"However, we are committed to boosting NEV sales to at least 20% of our sales mix by 2025," he stated.
 
Toyota predicts that overall industry new car sales will be 540 000 units in 2022.
 
Naamsa, the automotive business council, predicted earlier this month that overall industry sales in 2022 will increase by 14% to 529 000 vehicles.
 
Despite a variety of hurdles, Kirby predicts that the South African new car market will expand by 7.8% this year to 570 000 units, and that vehicle supply will improve.

Posted on : 02 Mar,2024 | News Source : adqz.co

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