The United Kingdom has postponed its planned ban on petrol and diesel car sales by five years, pushing the new deadline to 2035.
- This delay is excellent news for South Africa’s automotive manufacturing sector, which heavily relies on exporting internal combustion engine (ICE) vehicles to the UK, contributing around 4.9% to the country’s GDP.
- South Africa faced the risk of losing up to 20% of its vehicle exports, equivalent to approximately R31 billion, if the UK implemented a complete ban on fossil fuel vehicles before local manufacturers transitioned to new-energy vehicles (NEVs).
- The extended timeline allows South African automakers more time to invest in their facilities and produce NEVs and their components, reducing the impact of a petrol ban in their key market.
- South Africa is already making progress, with plans to manufacture plug-in hybrid X3 vehicles for export, and discussions underway for Chinese electric-car maker BYD to establish a factory in the country.
- The decision to delay the ban has received mixed reactions from automakers, with some expressing concerns about disrupted sales potential and slower NEV infrastructure development.
- However, Toyota has welcomed the move, recognizing the importance of a pragmatic vehicle transition that includes various low-emission and affordable technologies.