President Cyril Ramaphosa has lauded BMW South Africa's launch of the locally produced BMW X3 plug-in hybrid electric vehicle (PHEV) as a significant leap toward a low-carbon future and a boost for South Africa's industrial and economic growth.

Speaking at BMW's Rosslyn plant in Tshwane on Thursday, the President praised the milestone as a symbol of trust in the country, as well as a demonstration of BMW Group's long-standing commitment to the South African market.

The President highlighted that this world-class facility was the first BMW plant to be built outside of Germany and has been at the centre of the group's operations since 1973.

"A number of world-class vehicles are manufactured right here at this plant, including both ICE and hybrid models from the BMW X family. And now, we have reached another milestone with the production of the BMW X3 plug-in hybrid electric vehicle.

"The shift to green mobility and electrification in vehicle production is in line with commitments by countries to reduce emissions and support the transition to a low-carbon, climate resilient global economy. We are greatly encouraged by this milestone reached by the BMW Group," the President said.

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President Ramaphosa said the Rosslyn plant remains a pillar of South Africa's automotive sector, which contributes approximately 4.9% to the country's GDP, sustains over 115 000 direct manufacturing jobs, and supports more than half a million jobs across its value chain.

BMW's investment in local manufacturing comes at a time when South Africa is working to position itself as a globally competitive hub for future mobility.

"As the transition to battery electric vehicles, plug-in hybrids and hydrogen mobility gathers momentum, South Africa is perfectly positioned as a key global manufacturing base for the mobility of the future," President Ramaphosa said.

He reaffirmed government's commitment to enabling this shift, highlighting the recently released Electric Vehicle White Paper and an incentive programme under the Automotive Production and Development Programme (APDP).

These are aimed at creating a stable and predictable policy environment to attract investment, grow exports, and expand the local electric vehicle (EV) market.

"The production of the BMW X3 plug-in hybrid locally is a testament to the trust placed in our skills, our workers, our partnerships and our potential. Let us honour this achievement by staying the course, driving transformation, creating jobs and leading Africa's industrial future," he said.

President Ramaphosa also touched on the strategic opportunity presented by South Africa's mineral wealth.

"The global shift to clean vehicles presents opportunities for the local component manufacturing sector, whose focus has been on ICE components. With our significant reserves of critical minerals, we must become a hub for processing and beneficiation.

"We are finalising targeted incentives for battery cell localisation, EV component manufacture, clean mobility research and design, and critical mineral beneficiation," he said.

The President also acknowledged the changing global trade landscape - particularly the recent announcements on tariffs by the United States.

"The recent announcements on tariffs by the United States, an important market for our vehicle exports, further underscores the need to diversity our export base and accelerate domestic value creation," he said.

Youth development

The President commended BMW's commitment to youth development, including its training academy that produces 300 apprentices annually, its long-term support for the Youth Employment Service (YES), and its initiatives to develop young women leaders and black industrialists.

He also praised BMW's investment in digital skills through its partnership with UNICEF and its Tshwane-based IT Hub, which employs more than 2 000 digital professionals.

"As a founding partner of the Youth Employment Service, BMW has supported over 3 500 youth, with placements across all provinces and in diverse sectors such as retail, IT, education and health.

"BMW's roots may be in Bavaria, but its beating heart is South African. We are proud of your presence. We are greatly encouraged by your ongoing investment as we strive to build the low-carbon economies of the future," the President said.

Looking ahead

Calling on BMW to continue its role as a flagship partner in the South Africa Investment Conference (SAIC), the President urged the company to deepen localisation, expand youth training, lead in EV battery development, and support township-based supplier development.

"As the Government of National Unity, we welcome the role you continue to play in supporting our drive for inclusive growth and job creation.

"BMW's presence in the country is one of mutual interest and shared value. To the entire BMW team, you are building more than cars.

"You are building a legacy of excellence, inclusion and hope among South Africans. We look forward to continuing this partnership and supporting the next chapter of your journey," the President said. -