South Africa has already sold 232 electric cars in the first quarter of 2023, according to the latest vehicle sales data from Naamsa.
This is more than double the number of battery electric vehicles (BEVs) sold in the same quarter last year, which reached a total of 112 units.
Overall, new energy vehicle (NEV) sales, which comprise battery electrics, plug-in hybrids (PHEVs), and traditional hybrids (HEVs), saw an 18.8% increase compared to quarter one of 2022, as sales increased from 1,401 units to 1,665 units.
Growth in the face of adversity
NEV sales have been growing at an exponential rate year-on-year in South Africa, as only 202 transactions were recorded in 2018, which then doubled to 407 in 2019.
The one exception to the rule was of course 2020, when the Covid-19 pandemic caused a massive drop in consumer purchases and industry output.
Last year saw a new record high of 4,764 NEV sales, where electric cars contributed 502 units to the total sum.
This is despite the fact that the barrier-to-entry for all-electric transport remains incredibly high, as even the cheapest BEV in the country – the recently-unveiled GWM Ora hatchback – has a starting price of R716,900.
This makes it R25,000 more affordable than the previous title holder – the Mini Cooper SE – but taken as a whole, BEVs are still financially unattainable to most households.
There are currently 8 vehicle brands in South Africa that offer electric vehicles (EVs), consisting of Audi, BMW, Mini, Mercedes-Benz, GWM, Jaguar, Porsche, and Volvo.
The most commonly cited challenge to EV adoption in South Africa is supply and demand, with the former being attributed to global supply chain issues hampering production.
On the other hand, lacking demand issue is mainly attributed to the high upfront cost of EVs, even if this is offset somewhat by lower running costs further down the line, said Naamsa.
There are two main reasons for the prohibitive cost of EVs – the cost of batteries, an issue that is not exclusive to South Africa – and the VAT and import tariffs placed on EVs by the local government, which raises the price by as much as 30%.
Consumers have also cited concerns over electric vehicles’ driving range (otherwise known as range anxiety), and the availability of electricity in light of the country’s perpetual load-shedding, which frequently reaches stage six now with certain areas experiencing double-digit hours in the dark.
The local automotive industry is pushing for a transition towards NEVs out of concern that South Africa will otherwise be left behind while the world shifts to electric transport, leaving it without any of its major export or import markets.
Automakers have been installing hundreds of new charging ports around the country, and many brands are expanding their line-ups with a host of electrified options, from hybrids to battery electrics.
Keyword: How many electric cars have been sold in South Africa in 2023