Perceptions of South African original equipment manufacturers about pursuing new global electrical vehicle strategy

Global strategy in the automotive industry focusses on limiting climate changes and preservation of natural resources by gradually shifting towards non-gas emission transportation such as electrical vehicles (EVs). The strategic thinking and planning have advanced significantly globally. Automotive original equipment manufacturers (OEM’s) are responding to this growing demand of EVs by focusing investments on the research and development (R&D) and setting up manufacturing facilities. This EV strategy showed great degree of success already over the past few years. (Nathalie Ortar & Marianne Ryghaug, 2019) In 2013, sales of EVs were introduced in the South African market. The adoption of EVs is very low and existing studies suggest consumer perceptions towards EVs and possible social economic barriers in the South African automotive market prevent the adoption or intention to purchase EVs. The purpose of this research study was to unpack perception withholding the uptake of the EVs manufacturing in South Africa. It aimed to assess the barriers of the local automotive industry in pursuing the global strategy. The research structure was realised through conducting a literature review to explore the existing research topic. Empirical research evidence was obtained through conducting interviews which targeted existing OEMs whom the parent plants are currently manufacturing EVs globally. The study focused on key factors such as consumer knowledge, local infrastructure, and market uncertainty about EVs. The findings of the study highlighted consumers are knowledgeable about the benefits of owning EVs. However, the willingness set up a manufacturing infrastructure for EVs was highly not favourable for a majority of the factors such as power supply shortage, EVs supply chain shortage, small local market, and lack of proactive policies to drive EVs adoption or attract global investment. With these perceived positive opinions from respondents, it is down to government and private companies to work in cohesion to provide a conducive environment for EVs manufacturing in future.Thesis (MA) -- Faculty of Business and Economic science, 202