{"id":567364,"date":"2022-03-11T13:24:52","date_gmt":"2022-03-11T11:24:52","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=567364"},"modified":"2022-03-11T13:24:52","modified_gmt":"2022-03-11T11:24:52","slug":"electric-car-grants-proposed-for-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/567364\/electric-car-grants-proposed-for-south-africa\/","title":{"rendered":"Electric car ‘grants’ proposed for South Africa"},"content":{"rendered":"

South Africa risks being left behind as the rest of the world moves to electric vehicles – but the introduction of grants and other incentives could improve adoption, says the Trade & Industrial Policy Strategies (TIPS)\u00a0<\/em>group.<\/p>\n

TIPS is an independent, non-profit, economic research institution established in 1996 to support economic policy development.<\/p>\n

“Pushed by environmental regulations, support programmes and improving economics, electric vehicles (EVs) – ie, traditional hybrid (HEV), plug-in hybrid (PHEV) and battery electric (BEV) vehicles – are set to become dominant in the coming decades,” it said in a recent research paper<\/a><\/strong>.<\/p>\n

“Yet this electric revolution risks leaving many commuters behind, further deepening inequalities between and within countries. The risk of an exclusionary, elitist transition to e-mobility is high.”<\/p>\n

To address this divide, the group said a dual strategy is necessary to foster the overall uptake of EVs as well as incentivising an inclusive rollout that benefits all in South Africa’s society.<\/p>\n

“A temporary cash grant or innovative financial arrangement pegged at R80,000 for BEVs, R40,000 for PHEVs and R20,000 for HEVs, is recommended as the main instrument to incentivise prospective buyers.<\/p>\n

“This level of support can bridge the gap between electric and petrol-fuelled cars for the first two quintiles of the market,” it said.<\/p>\n

Complementarily, or alternatively, extremely low-interest loans, underpinned by development finance institutions (DFIs), could be offered to EV buyers, it said.<\/p>\n

\"\"<\/a><\/p>\n

Second, the strategy should foster the introduction of electric vehicles in public transport, it said.<\/p>\n

“The rollout of e-minibus taxis (MBTs) should be supported through a temporary, enhanced Taxi Recapitalisation Programme scrapping allowance for EVs – around R162,000 for BEVs – and low-cost finance,” TIPS said.<\/p>\n

“The shift of bus fleets to EVs should be supported through a set of grants and innovative financial arrangements and business models, like Pay-as-you-Save.”<\/p>\n

\n

Read: Government likely to intervene on South Africa\u2019s petrol hikes and Eskom: economists<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

South Africa risks being left behind as the rest of the world moves to electric vehicles, but the introduction of grants and other incentives could improve adoption, says the Trade & Industrial Policy Strategies (TIPS)\u00a0group.<\/p>\n","protected":false},"author":10,"featured_media":566026,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[26,11180],"class_list":["post-567364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-headline","tag-tips"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/567364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=567364"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/567364\/revisions"}],"predecessor-version":[{"id":567390,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/567364\/revisions\/567390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/566026"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=567364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=567364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=567364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}