South Africa’s $27 billion automotive industry is set to benefit from Chinese investment after President Cyril Ramaphosa introduced a tax break for new-energy vehicle production. The tax amendment, offering a 150% deduction for investments in electric and hydrogen-powered vehicle manufacturing, aims to secure the industry's future in South Africa. Chinese automakers, including Chery and Great Wall Motor, have expressed interest by signing non-disclosure agreements with the Automotive Business Council. The move comes amidst the EU's gradual ban on internal-combustion engines, which poses a threat to South Africa's automotive exports. While some manufacturers like Ford and BMW are focusing on hybrid production, the country is yet to commit to battery-electric vehicle (BEV) manufacturing. Industry leaders emphasize that beyond the tax incentive, investments in charging infrastructure, utilizing South Africa's mineral wealth for battery production, and reducing import levies are crucial for staying competitive. South Africa's role as a major producer of manganese and platinum, vital for EV batteries and hydrogen fuel cells, highlights its potential for EV manufacturing. However, automakers stress the importance of continuous policy support to ensure the country's relevance in the global automotive sector.