Lack of clarity on EVs could hold SA back, says Ford president

It’s too soon to panic but SA’s lack of a clear policy on electric vehicles (EVs) puts it at a disadvantage to other countries hoping to develop their motor industries, says Kay Hart, president of Ford’s International Markets Group (IMG).

SA’s transition to EVs was inevitable and they were part of Ford’s marketing and manufacturing plans for the country, Hart said. However, it was difficult to make firm commitments without knowing exactly what the government had in mind.

For example, Ford was not prepared to even import EVs without a proper national charging network. “Customers are demanding EVs but if you don’t have the infrastructure to support them, they will have an inferior experience,” she said.

IMG is responsible for about 100 emerged and emerging markets around the world. Besides SA and the rest of Africa, they include India, Mexico, the Middle East, South Korea, Australia, New Zealand and Southeast Asia.  Together, they account for about 7.2% of global Ford sales.

Hart, a New Zealander, was appointed last month. She has previously run Ford operations in Australia and the Philippines, and global customer activities. Neale Hill, president of Ford Africa, based in Silverton, Tshwane, reports directly to Hart.

Ford SA started building the latest Ranger bakkie series late in 2022 after a R15.8bn investment from the US. Hill said the initial production emphasis was on double-cab models but volumes of single- and super-cab were starting to catch up. He hoped the Silverton assembly plant would reach a “steady” production rate by midyear and approach its 200,000 installed annual capacity by the end of 2024.

Most production is exported, much of it to European markets preparing to outlaw the sale of vehicles with petrol and diesel internal combustion engines (ICE). All Rangers built at Silverton are ICE but Ford executives have stated that EV versions will be added during the new model’s life cycle.

Last month, however, the government again failed to meet its promise of announcing an EV policy for the local motor industry. Such a policy was originally due in 2021. No explanation has been offered for the latest delay but it is said to be related to the projected cost of incentives. Motor companies want both manufacturing and consumer incentives but the government is not keen on the latter.

Hart said: “One of the biggest challenges SA faces is around policy and the environment. Electrification plays a huge role in that. There is not the same clarity here as in other markets.” In markets where EV growth was happening quickly, it was because of “clear government mandates”.

In SA, Ford had to make assumptions about the government’s attitude to EVs. Hill added that only once these became clear, would Silverton be able to make firm production plans. However, he said production lines were designed for EV additions when necessary.

Hart said that though the European transition to EVs would begin seriously in about three years, ICE vehicles would remain popular in SA and across the rest of Africa for at least another decade — particularly if scientists succeeded in developing carbon-neutral synthetic fuels for ICE engines.

Despite growing SA demand for EVs, “we won’t see the rapid pace of electrification here that we are seeing in other parts of the world”, she said. “We can definitely expect ICE to be here for the next 10-12 years. “​