BMW Group South Africa CEO Peter van Binsbergen has called for the “speedy” finalisation of SA’s long-awaited new energy vehicle (NEV) policy.
Van Binsbergen made the comment yesterday during a business update briefing at BMW’s head office in Midrand.
The automotive industry has over the years made several calls to urge government to hasten the policy.
Even though government has released frameworks like the electric vehicle white paper, approved by Cabinet in 2023, and revised the Automotive Production and Development Programme to formally include electric vehicles (EVs), there’s still no fully detailed and finalised NEV policy.
While SA waits for its NEV auto policy to be finalised and implemented, the country is being overtaken by North African nation Morocco as the “largest vehicle producer”.
“One thing we really need is speed,” Van Binsbergen commented. “[Industry] colleagues often say Morocco’s government decisions are made and implemented quickly. We’ve been talking about an NEV policy since I got here − sadly without much progress.”
Trade, industry and competition minister Parks Tau has stated that SA’s future competitiveness in the automotive sector hinges on rapidly embracing NEVs.
The NEV policy is expected to advance the country’s aspirations to be a global automotive hub, while providing direction to original equipment manufacturers that export vehicles to Europe, where targets for NEV transition have been set. It should speak to specific adoption targets and consumer incentives.
Government has touted plans to introduce a tax incentive to encourage the production of EVs in SA. Starting on 1 March, producers will be able to claim 150% of qualifying investment spending on electric and hydrogen-powered vehicles in the first year.
Several countries across the globe offer fiscal support and tax incentives to stimulate market uptake of NEVs, including Norway, Sweden, China, Iceland and the US.
Closer to home, nations like Zambia, Kenya, Mauritius and Rwanda have either introduced tax incentives or reduced various tax duties for NEV ownership.
New era is coming
German automaker BMW plans to bring its next NEV model, the BMW iX3, to South African shores in the second half of this year, revealed Van Binsbergen.
The company has a family of electrified vehicles, with at least one battery electric vehicle (BEV) or plug-in hybrid electric vehicle available across its range of BMW, MINI and Rolls-Royce vehicle models.
Van Binsbergen explained the NEV segment isn’t very large in SA, but the BMW Group allows customers to choose the drive trend that matches their needs.
He added that the space is about to get “strong rework” with the launch of the Neue Klasse range, BMW Group’s new mobility platform that focuses on design, electrification and digitisation.
“It’s a new era of mobility and it’s right that South Africa enters the new era of mobility with the iX3 when it arrives later this year. The previous iX3 – the G08 – was the best seller BEV model in South Africa. We expect this to also do something for our BEV volumes in SA – it is the sweet spot here in the market.
“We have more than 40 vehicles that will be coming, in approximately two years, all modelled on the Neue Klasse. It’s going to be an exciting second half for us, with the launches of the new iX3 and new X5.”
Providing a snapshot of the company’s 2025 performance, Van Binsbergen said the group achieved 12% year-on-year (YOY) growth in the local marketplace, reaching 46.15%.
The MINI brand grew by 4%, with its BEV offering increasing by more than 50% last year. This saw MINI reach second place in the segment, he stated.
“The entire BMW Group portfolio had a strong year in South Africa. The 12% YOY growth led to BMW South Africa moving into in the top five growth markets.”
On the manufacturing side, BMW Group Plant Rosslyn produced more than 79 000 vehicles in 2025, which was the “highest” annual production volume for the plant, says director Danny Bester.
Bester revealed that BMW’s production split is 40% plain hybrids and 60% internal combustion engine vehicles, which are a combination of petrol and diesel.
Van Binsbergen elaborated that the above-mentioned breakdown represents global figures.
On the domestic side of the market, the split is much more conservative, he stated. “Nearly 10% of BMW’s X3 mix is plug-in hybrid. What’s happening overseas is that…the minute incentives are put in place for NEVs, they take off.
“There are no incentives in South Africa, so we’re seeing real natural demand and it’s around 10%. But incentives would really give NEVs a new lease on life.”
These calls come as law-makers heard about the state of the local automotive industry this week.
The Department of Trade, Industry and Competition (DTIC), local manufacturers and automotive bodies briefed Parliament’s portfolio committee, reporting that vehicle production, employment and exports have recovered to pre-COVID-19 levels.
However, they cautioned that performance remains well below targets, raising concern that local content levels remain stagnant at around 40%, which limits the industry’s ability to create more jobs and grow domestic suppliers.
In response, the DTIC indicated it is reviewing automotive policies to ensure stronger and more effective interventions. These include addressing challenges such as competition from cheaper vehicle imports, ongoing global economic uncertainty, and the global transition from internal combustion engines to electric vehicles.
The policy review also seeks to accelerate localisation and transformation across the industry.
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