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Mobility 2030

Mobility 2030

The future mobility ecosystem will be completely disrupted by technological innovation.

Why South Africa can't afford to take a back seat

Mobility 2030: ICE in Africa

 

The South African automotive manufacturers have exclusively produced Internal Combustion Engine (ICE) powered vehicles for the past few decades. They export almost half of its production to Europe and the USA. However, this demand is expected to decrease significantly in light of the restrictions on pollution emitting ICE vehicles in favour of electric vehicles (EV), which are considered more environmentally friendly. Similarly restrictive environmental legislation is expected to be enacted across an increasing number of countries in these regions. Coupled with the improvement in electrical power train technologies and the consequence drop in cost of production, electric vehicles are expected to pose a significant substitution threat in these markets. This poses a stark threat to the SA automotive industry whose traditional strength is in the production of ICE vehicles.

However, the African market is not expected to embrace electric vehicles in the medium term due to several factors including the affordability of electric vehicles, unreliable electricity generation as well as a lack of supporting infrastructure. Hence, the rest of Africa could be an alternative market for the export of South African ICE vehicles in the medium term, while they transition to participating in the electric vehicle production value chain.

 

 

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