South Africa has implemented a new tax amendment offering a 150% deduction for manufacturers of electric and hydrogen-powered vehicles. The law signed by President Cyril Ramaphosa aims to boost the EV sector, with the incentive set to come into effect in early 2026. The legislation allows deductions for buildings and new equipment used in producing electric or hydrogen vehicles, with a duration set until 2036. Finance Minister Enoch Godongwana allocated R964 million to support the transition to electric vehicles. The incentive is expected to attract investments, with Chinese automakers already showing interest. The Automotive Business Council sees this as a significant step towards fostering growth in the sector. Despite challenges like a 25% import duty on EVs, sales have been increasing, indicating a positive shift towards sustainable vehicle adoption.