South Africa has introduced a tax incentive to encourage local and international motor vehicle manufacturers to invest in assets for producing battery electric and hydrogen-powered vehicles. This initiative allows businesses to deduct 150% of the cost of investments in new assets from their taxable income, aiming to kickstart the production of cleaner cars in the country. The government's strategy, outlined in the Electric Vehicles White Paper, focuses on transitioning the automotive industry towards dual-platform production that includes electric vehicles by 2035. The tax incentive, effective from March next year, forms part of broader efforts to attract investments in emission-free vehicle production to align with global climate goals and the changing automotive market. The automotive industry in South Africa is a significant economic player, contributing 5.3% to GDP and supporting around 498,000 jobs. By promoting the local production of electric vehicles for export markets, the country aims to maintain its strategic position in the global automotive export industry. With the transport sector being a major polluter, transitioning to new energy vehicles is crucial for reducing carbon emissions. The tax incentive complements the Just Energy Transition Investment Plan, highlighting the need for investments in new energy vehicles like hydrogen and electric to mitigate emissions and drive industrial development.