By Daniel Itai
South African President, Cyril Ramaphosa, has lauded global automobile manufacturer, BMW, for its investment in the production of hybrid vehicles within the country.
BMW recently announced a R4.2 billion (US$220 million) expenditure over the next five years to upgrade its local manufacturing plant for the forthcoming generation of BMW X3 models.
The plug-in hybrid X3 will be exclusively manufactured in South Africa at BMW’s Rosslyn plant in Pretoria, starting from the second half of 2024. This milestone marks BMW’s first locally-produced electric vehicle and aligns with South Africa’s transition to low carbon energy, emphasizing their commitment to sustainability.
President Ramaphosa expressed his satisfaction with the investment, highlighting the positive impact it will have on the economy and job retention. BMW’s plans include reskilling and training on electro-mobility, providing certainty for over 20,000 employees across their facilities in the country. Ramaphosa stressed the importance of managing the transition to new production methods in a fair and equitable manner, involving collaboration between the government, business, labor, and civil society.
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Additionally, President Ramaphosa emphasized the critical role of reducing the country’s carbon footprint for the well-being of its citizens, as well as the potential for economic growth, diversification, and job creation.
South Africa aims to achieve a low-carbon, climate-resilient economy, ensuring that the transition is inclusive and supports affected workers, communities, and industries.
A Just Energy Transition Investment Plan has been developed to guide resources towards renewable energy sources, as well as new industries like green hydrogen and electric vehicles, fostering growth,
competitiveness, and innovation.
It is worth noting that the European Union (EU) has recently announced its decision to ban the sale of new petrol and diesel-powered vehicles from 2035.
However, South Africa possesses significant advantages, including the world’s largest reserves of platinum, making it an attractive location for renewable energy production, particularly for green hydrogen. Certain vehicle models powered by green hydrogen can serve as e-fuels and remain exempt from the EU ban.
Overall, BMW’s commitment to manufacturing hybrid vehicles in South Africa aligns with the nation’s goals for sustainability, economic development, and job creation, while positioning the country as a leader in renewable energy and green technologies.
