Industrialization of plug-in electric vehicles (PEV) in South Africa

Abstract

The study intended to investigate the Industrialization of Plug-In Electric Vehicles (PEV) in South Africa. The study aimed at determining whether PEVs in South Africa (SA) could be industrialized using local resources. The study also intended to identify the possibility of industrialization, the socio-economic factors and localization. South Africa previously had a Joule Electric Vehicle that had failed to industrialize to due lack of government support, the study had learned lessons from the Joule Electric Vehicle. SA automotive industry has an important role in SA’s economy, it contributes about 4,9% to the GDP, it produces close to 1% of the global car manufacturing and exports 60% of its manufactured cars to the European market. SA is currently facing a problem of losing its major markets that is Europe Union (EU) and United Kingdom (UK). The EU and UK took a political decision that by 2030 they will only accept cars that will reduce green-house gas emissions by 55% and by the year 2035 they will only accept 100% electric vehicles produced in SA. In order for SA to retain its major market it has to shift from the production of Internal Combustion Engines to Electric Vehicles. The study aimed at determining the capacity of PEVs to drive Industrialization, to identify the socio-economic factors and to establish the impact of localization. The study was conducted through qualitative research method where the data was collected using face-face interviews and had a population size of 41 participants and a sample size of 21 participants. The study interviewed participants from Department of Transport, Automobile Industry and Department of Trade, Industry and Competition. In addition, the interviewees were Chief Executive Officers, Executive Managers, Senior Managers and Middle Managers. The study recommended future research areas that included implementation of policy, localization of PEV components and emissions caused by the manufacturing of PEVs.