South Africa is embarking on a transformative journey in its $27 billion automotive industry with a new tax break signed into law by President Cyril Ramaphosa. The policy offers a 150% tax deduction for the production of electric and hydrogen vehicles, attracting interest from Chinese automakers like Chery and Great Wall Motors. However, industry leaders stress the importance of additional reforms beyond the tax break, such as lower levies, improved infrastructure, and utilizing local mineral resources. While the tax incentive is a positive step towards boosting EV production and attracting investment, challenges remain. The automotive sector faces risks due to changing legislation in export markets, particularly the EU's move towards phasing out internal combustion engines. Companies like Ford and BMW are exploring hybrid production, but investment in battery-electric vehicles is yet to materialize. To achieve sustainable growth, South Africa needs to invest in charging infrastructure, develop a local supply chain for minerals, and address outdated tax regulations. The industry's reliance on local sales and the need for supportive government policies are highlighted as crucial factors for its survival. As the world's leading producer of manganese and platinum, South Africa has the potential to excel in EV production by leveraging its mineral wealth. Despite being an attractive investment destination, the industry requires ongoing government support to thrive and remain competitive in the global market.