South Africa is making a strategic move to attract Chinese investment in its automotive industry by implementing a tax break aimed at promoting electric and hydrogen-powered vehicles. The recent tax incentive, offering a 150% deduction for investments in 'new-energy' vehicle production, signals a push towards aligning the country's auto sector with global shifts towards sustainable transportation. This move comes as Chinese automakers like Chery Automobile and Great Wall Motor are actively expanding their operations in South Africa, leveraging the tax benefits to strengthen their presence in Africa's prominent car market. While the tax break is expected to encourage new investments and retention of existing ones, local automakers such as Volkswagen and Isuzu are cautious about immediate local production of EVs. Stellantis, on the other hand, plans to enter the EV manufacturing sector in South Africa once the operating conditions become more favorable. The support from the Chinese government is evident as several Chinese automakers have already engaged with the Automotive Business Council through non-disclosure agreements, indicating a growing interest in investing in South Africa's automotive landscape. South Africa's advantage lies in its abundant resources of manganese, nickel, and platinum, which are crucial for the production of EV batteries and hydrogen fuel cells, positioning the country as a key player in the future of sustainable transportation. Overall, this initiative not only highlights the potential for growth in South Africa's automotive industry but also underscores the importance of strategic partnerships and investments to capitalize on emerging global trends in the automotive sector.