south africa approves 150 tax break to foster ev hydrogen vehicle production

South Africa Approves 150 Tax Break To Foster Ev, Hydrogen Vehicle Production

New legislation introducing a 150 investment allowance for capital investments to enable the production of electric EV and hydrogen vehicles in South Africa has been signed into law.

While the investment allowance is a positive development, Mabasa said additional steps are needed to support South Africas automotive sector fully as it transitions to new vehicle technologies.

Investments in charging networks, leveraging South Africas mineral wealth for battery production and reducing high import levies and ad-valorem taxes are critical to maintaining competitiveness. South Africas status as a leading manganese and platinum producer, essential for EV batteries and hydrogen fuel cells, positions it as a strategic location for EV manufacturing, said investment platform Daba . However, additional policy support is vital.