The Electric Vehicle trend is not going anywhere in a hurry. Despite the high initial cost of adoption, there remain savings to be had in the long run. Find out what it costs to run an EV and how well they hold their value.
In recent years, the drive towards electric mobility has dramatically increased. Several manufacturers have ceased production of their diesel passenger vehicles and many have implemented long-term plans to axe the production of internal combustion engine (ICE) passenger vehicles in the not-too-distant future. This has seen a push towards both hybrid and full-electric drivetrain options being explored.
South Africa has seen the drive towards electrification amplified in recent years with several manufacturers committing to substantial investment in local Electric Vehicle (EV) infrastructure in the form of public charging stations, first responder training and dealership preparation. Currently, there are over 250 publically accessible charging stations dotted around South Africa in convenient locations and EV dealerships.
Each year, more and more consumers are warming up to the idea of buying an EV with 61% of respondents surveyed in the recent AutoTrader 2022 Electric Vehicle Buyers Survey stating that they would consider buying an EV in the near future.
While the initial purchase price still remains the primary barrier due to the 25% EV import tax levied against EVs (as opposed to the 18% import tax on ICE vehicles), the number of consumers who have taken the plunge has increased by over 100% in the last two years. The AutoTrader 2022 Electric Vehicle Buyers Survey noticed that 64% of respondents would buy an EV if it was priced below R500 000. Currently, the cheapest EV on offer in South Africa is the MINI Cooper SE Hatch 3-door which retails for R723 000.
Is this worth it though or are you still better off with an ICE vehicle? Let’s look at some of the factors that help make EVs a viable long-term investment.
Are EVs worth it?
EVs are a relatively new adoption, despite the fact that some of the first cars ever produced were electric. The range has always been a concern but with the current global drive to switch to electrification, the research and development of the battery and vehicle technology are larger than ever. Early EVs presented in this millennium started with ranges of around 100 km but now it’s not uncommon to find an EV that is capable of doing over 400 km from a single charge. The further you can drive on a single charge, the lower your overall running costs.
Costs to recharge
While we may have regular tariff increases from our national electricity supplier, Eskom, the fact remains that electricity by the unit remains far cheaper than fuel by the litre. The incessant fuel price increases have seen a dramatic change in the cost to fill one’s tank.
The cost per unit of electricity varies from municipality to municipality and with the rate of consumption per billing period. The 2022/2023 Johannesburg City Power tariffs start from as little as R1.82/kWh (unit) until you reach 350 kWh. From then, the rate increases to R2.09/kWh up to 500 units with the maximum tariff imposed being R2.38/kWh once you’ve breached the 500 unit mark.
EV batteries vary in size from 32.6 kWh in the MINI SE to 95 kWh in vehicles like the Audi etron 55 Advanced. The simple maths suggests a theoretical cost of R77.58 to charge the MINI SE battery from 0 to 100% at the highest residential rate in Johannesburg while the Audi etron 55 Advanced will set you back R226.10 for a 0 to 100% charge. It’s also worth noting that no EV should be run down below 10% charge so these numbers will in fact be less.
The above calculation is the cheapest charging solution, the one that takes place at your house using either the supplied portable charger cable that connects to the outlet in your house or garage or from the optional home charger that you can install to help speed up the charge.
Charging in public does cost more though and suppliers are able to charge whatever they please per unit for the service provided as public charging is yet to be regulated (this is South Africa, give it chance). In general, you can expect to pay anywhere from R2.56 to R4.68 per unit from a public AC charging station and roughly R5.88 per unit for a DC fast charge.
Running costs
If we compare EV to ICE, using the Audi etron 55 Advanced and a similarly sized and priced Audi Q8 55 TFSI quattro, the results speak for themselves.
To fill the tank of the Audi Q8, 85-litres is required. At the current price of R23.46 that equates to a cost of R1 994.10. This will give you, according to Audi’s claims, a range of 934 km. The calculated cost per km in fuel alone, not factoring in wear and tear, is R2.13 per kilometre.
A full charge for the Audi etron 55 Advanced with its 95 kWh battery at the most expensive residential rate in Johannesburg costs R226.10. With this charge, you can get a claimed 440 km out of the etron. This then works back to R0.51 per kilometre. This equates to savings of around 75%. Let’s not forget that the etron produced nearly 50% more power than the Q8 55 TFSI and nearly double the torque – if only there was a way to measure enjoyment per Rand.
Services
Due to the nature of EVs, there are hardly any service and maintenance costs. EVs employ regenerative braking that uses the electric motors to slow the vehicle down and recuperate energy and charge in the process. This translates to less wear on the braking components.
Very few EVs have cooling systems that use coolant and there is no oil to be changed or filters that need replacing (aside from cabin air filters). The very design of electric motors means that there are substantially fewer moving parts in the drivetrain and less to go wrong. Most faults that could occur in an EV would be able to be rectified with software (computer programs) rather than component failure.
The one caveat though is that due to the high torque output and additional weight of EVs, tyre wear is increased. Manufacturers are aware of this and are constantly working with tyre manufacturers to produce stronger tyres that will soon offer a similar lifespan to those created for ICE vehicles.
Depreciation
With EVs being relatively new in the mainstream in South Africa, the used EV market is still rather small. This will increase over time but as things currently stand, EV owners are noticing that the demand for used EVs is rather high which results in their value being retained. The Jaguar I-Pace was released in 2019 with a retail price of R1 920 700 for the range-topping HSE First Edition. Currently, this same 2019 model retails for R1 450 000 with 40 000 km mileage for depreciation of only 24%. Similarly, the MINI SE when launched cost R722 000 for the SE L. Similar models today retail for R670 000 for depreciation of only 7.2%.
Verdict
The value of EVs is hard to ignore. When diesel passenger cars came to the forefront in the late 1990s, many were as sceptical about long-term savings. It was discovered that one would have to own and maintain a diesel vehicle for twice as long as a petrol vehicle before the fuel savings offset the increased frequency of servicing and savings could be felt. There’s no such problem with EVs at this current stage; you hardly have to service them, the running costs are frightfully low and it’s only the initial purchase price that is proving to be a hindrance.
The convenience of EVs has to be factored in as well. Charging at home is considerably more convenient than having to drive to a depot to replenish your fuel source and with the ever-expanding public charging network, it won’t be long before long-distance, cross-country journeys will be as simple as they currently are with ICE vehicles.
Chad LückhoffWith over 18 years of motorsport commentary and a passion for 90s Japanese Sports Cars, Chad Lückhoff is happiest when surrounded by drift cars and smoking tyres. His experience as the Technical Editor of the country’s top tuning magazine means that it’s the nuts and bolts of motoring that tickles his fancy. As comfortable in front of the camera as he is behind it, he’ll take you behind the wheel with his video reviews, written recounts, and invoking photography. One of the first to join the AutoTrader fray, Chad has been living his passion at AutoTrader for over 7-years.View News & Reviews
Keyword: Is an electric vehicle worth the investment?