South Africa has recently enacted tax breaks to incentivize the production of new-energy vehicles, attracting interest from Chinese automakers. The Automotive Business Council in South Africa has confirmed that three Chinese automakers have shown interest in the country's automotive industry. The tax deduction of 150% on investments in electric and hydrogen-powered vehicle production is expected to boost investment and innovation in the sector. While traditional automakers like Toyota and Volkswagen face competition from Chinese manufacturers like Chery and Great Wall, the industry is shifting towards new-energy vehicles. The move comes as a response to evolving global regulations phasing out internal-combustion engines. South Africa, known for its manganese, nickel, and rare earth deposits essential for battery manufacturing, is well-positioned to produce electric vehicles. Additionally, as the largest producer of platinum, the country also has a stake in the hydrogen-fueled vehicle market. Despite some companies planning to manufacture hybrids, there is a push for more investments in fully electric vehicles. The industry acknowledges the need for a supportive regulatory environment, infrastructure development, and reduced taxes to foster growth. Advocates emphasize the importance of building charging networks, utilizing the region's mineral wealth, and revising import levies to make electric vehicles more accessible. While South Africa offers a conducive environment for automaker investments in Africa, stakeholders stress the necessity of ongoing government support to ensure the sector's sustainability and competitiveness in the global market.