South Africa is contemplating the introduction of tax rebates or subsidies to incentivize consumers to purchase electric vehicles, as President Cyril Ramaphosa aims to propel the transition of the automotive industry towards cleaner and more sustainable fuels. Global automakers like Ford, Volkswagen, BMW, and Toyota have manufacturing operations in South Africa, catering to both local and European markets. The surge in demand for electric and hybrid models, driven by regulatory pressures and market trends, is compelling automakers to adapt. The government plans to introduce allowances for new investments in electric and hydrogen-powered vehicles, providing a 150% claim on qualifying spending from March 1, 2026. Additionally, comprehensive policy guidelines are being developed to support new energy vehicles, hybrids, and plug-in hybrids, alongside measures to facilitate domestic battery production and green hydrogen fuel cell markets. The collaboration between the government and private sector is pivotal in promoting the production of new energy vehicles and establishing essential infrastructure for their widespread adoption.