Technology

South Africa paves way for NEV investment boom

Can tax incentive unlock NEV growth?

01 March 2025

Chinese automaker GAC Motors’ GS3 Emzoom, which has been launched in South Africa. Three Chinese automakers have signed NDAs with Naamsa.

South Africa hopes to attract new investment in the automotive industry after signing legislation in January that introduces a 150% tax incentive for electric and hydrogen vehicles, or new energy vehicles (NEVs), produced locally.

Effective from March 2026, all qualifying investments up to R500 million can claim a 150% tax deduction for the 2026/27 tax year.

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