Cape Town – Set to construction of its first car-manufacturing plant in South Africa this month, global auto giant Stellantis is weighing whether to expand into the production of new-energy vehicles (NEVs).
The anticipated vehicles are much like the Wagoneer S, which was highlighted recently by Sowetan Live.
The decision involves expanding the planned R3 billion plant on the south-east coast, and is heavily dependent on whether a local market for NEVs emerges, said Mike Whitfield, MD of the South African unit of Stellantis, which produces models such as Jeep and Alfa Romeo.
The plant may manufacture hydrogen-powered vehicles or electric vehicles, neither of which are produced in South Africa. As per News24, South Africa’s car industry is in danger of being left behind by the universal switch to EVs, more specifically in the biggest export market, the European Union.
The South African government has only just put in place a framework that touches on investments aimed at the local production of NEVs. There are still prohibitive duties placed on the import of EVs, and the development of a South African network of charging stations is only in its initial stages.
Whitfield said a local market for NEVs was needed and that a facility would only be built in a country where a significant share of output could be sold on a local level.
He also suggested that South Africa making components for NEVs for export rather than shipping its minerals abroad.
New plant
The new plant will be built in the Coega special economic zone between the ports of Port Elizabeth and Ngqura, in the Eastern Cape. It is expected to start production of Peugeot Landtrek pick-up trucks by the end of 2025. Whitfield says the goal is to produce 50 000 vehicles a year within 18 months, then ramp up to 90 000 units.
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Compiled by Lauren Petersen
