South Africa is far behind other countries with similar population sizes when it comes to the sale of battery-electric vehicles (BEVs).
In 2023, only 1,080 EVs were sold within our borders compared to 450,025 in the United Kingdom which has roughly seven million more residents.
China, the second-most populous nation in the world with the highest number of BEV manufacturers, recorded a staggering 8.1 million sales of battery-electric autos.
The below graph, compiled by The Outlier with data from the International Energy Agency (IEA), shows South Africa’s slow start to the BEV race:
The lacking adoption is mainly attributed to the high prices of BEVs, a small variety, and limited supporting infrastructure in the country.
At present, the most affordable BEV in South Africa is the GWM Ora 03 which goes for a minimum of R686,950 – around R290,000 more than what the average citizen spends on a new vehicle.
Buyers looking to get into one of these technologically-advanced rides have limited choices, too, consisting largely of hatchbacks, crossovers, and sports cars from a handful of mostly premium brands.
While inroads are being made in expanding the country’s charging network to more rural areas, the vast majority of charging stations are concentrated in major metros making it tough to travel across the country in BEVs.
GWM Ora 03
EV uptake on the rise
South Africa may be behind first-world economies when it comes to EV sales, but the segment continues to enjoy exponential growth.
In the National Association of Automobile Manufacturer’s (Naamsa) latest Automotive Trade Manual, the organisation revealed that the sale of pure battery-electric cars rose from just 154 sales in 2019 to 929 in 2023.
This figure is below the 1,080 sales reported by the IEA but is a more accurate reflection of the actual EV sales in the country.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Plug-in hybrid | 72 | 77 | 51 | 122 | 333 |
| Traditional hybrid | 181 | 155 | 627 | 4,050 | 6,484 |
| Battery-electric vehicles | 154 | 92 | 218 | 502 | 929 |
Next-generation BMW X3 plug-in hybrid that will be produced in South Africa
To further incentivise uptake of these vehicles, finance minister Enoch Godongwana in his 2024 budget statement announced that the national government will soon introduce an allowance for new investment into the production of new-energy vehicles in South Africa.
New-energy vehicles (NEVs) encompass traditional hybrids, plug-in hybrids, and pure battery-electric vehicles.
Starting 1 March 2026, the new legislation will allow NEV producers to claim 150% of qualifying investment spending on electric and hydrogen-powered vehicles within the first year.
The incentive will be implemented in addition to the existing support under the Automotive Production Development Programme (APDP).
Additionally, the Godongwana said that government has reprioritised R964 million over the medium term to support the automotive manufacturing industry’s transition to NEVs.
This will enable the first locally-produced NEVs to become a reality by as soon as 2026, according to Ebrahim Patel, Minister of Trade, Industry, and Competition.
Phase two of the country’s NEV White Paper will place priority on motivating private buyers to purchase NEVs but this is only expected to take place in approximately seven years, according to Patel.
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