- European Commission confirms commitment to zero emission vehicle dominance beyond 2035.
- South Africa automotive exports to the EU face mounting regulatory and competitiveness pressure.
- Industry calls for urgent policy alignment and industrial transformation.
The European Commission has reaffirmed its commitment to a zero emission vehicle future, maintaining strict carbon dioxide reduction targets for all new vehicles and reinforcing the 2035 transition timeline.
Under the latest Automotive Package, zero emission vehicles including battery electric and fuel cell electric vehicles will dominate the European market beyond 2035. The policy direction aligns with South Africa Automotive Masterplan targets, yet industry leaders warn that the shift presents significant risks for local manufacturers that are not yet fully aligned with global electrification trends.
In 2022, approximately 4 percent of vehicles imported into the European Union originated from South Africa, representing 169,093 units. With Europe being a key export destination, regulatory changes in that market have direct implications for South Africa automotive production and employment.
Battery electric vehicle sales in Europe continue to accelerate. Last year, electric vehicle sales surpassed new internal combustion vehicle sales, reaching record levels in December. This structural shift in demand signals a rapidly narrowing window for exporters reliant on conventional engine platforms.
“Europe Automotive Package announcement is no lifeline for the South African automotive industry,” says Hiten Parmar, Executive Director of The Electric Mission. “International regulatory measures are placing further pressure on South Africa industrial transformation toward local manufacturing of zero emission vehicles and their associated components. Thousands of jobs are at risk across the automotive value chain.”
A key component of the European Automotive Package is the Battery Booster programme, which aims to expand European battery manufacturing capacity and strengthen domestic electric vehicle production. While this may deepen European supply chain localisation, it also presents an opportunity under the Clean Trade and Investment Partnership signed between the European Union and South Africa. The agreement could support collaboration in developing a competitive battery value chain across both regions.
Parmar emphasises that the 2035 timeline demands decisive action. “The significance of the 2035 target requires strategic intervention across both supply side and demand side policies in South Africa. This is a critical opportunity to align the South African automotive industry with key global markets.”
Competitive pressures are also intensifying within Africa. In January, Morocco overtook South Africa as the continent leading automotive producer. The shift follows rapid industrial expansion, high technology investments and strong renewable energy deployment. Morocco automotive production increased by 79 percent, underscoring the pace of change in regional manufacturing competitiveness.
A recent submission to the G20 Presidency task force highlighted the importance of electric vehicle adoption in emerging economies. According to Parmar, fuel efficiency and vehicle emission standards create fleet wide performance benchmarks that encourage manufacturers to innovate through more efficient combustion technologies or accelerate the transition to zero emission vehicles.
While the automotive sector remains a cornerstone of South Africa economy, industry stakeholders warn that the absence of clear policy direction and targeted support mechanisms could undermine its future competitiveness in a rapidly electrifying global market.
Author: Bryan Groenendaal
