This type of car used to cost R740,000 – It’s R400,000 cheaper now

The entry cost of electric vehicles (EVs) has dramatically fallen in the span of two years, thanks to the introduction of new, more affordable models.

EV adoption is growing at a snail’s pace in South Africa, and while there are many factors to consider, from range anxiety to load-shedding and the poor state of our roads, one of the biggest obstacles to widespread adoption has undoubtedly been prohibitive price tags.

At the start of 2023, South Africa had only a single EV that cost less than R1 million – the Mini Cooper SE – which would ask customers for a minimum of R742,100.

The second ‘cheapest’ EV at the time was the Volvo XC40 Recharge, which crossed the seven-figure mark with a sticker of R1,075,000.

The first wave of EVs sold in South Africa was mainly supplied by luxury brands, where the relative difference in price was less consequential for their clientele.

A few examples of this include the Jaguar I-Pace, Audi e-tron, and Porsche Taycan, none of which could be described as ‘mass market.’

Since then, however, we’ve seen a number of other carmakers enter the electric car scene with models that have helped to lower the price floor by a considerable amount.

The race for South Africa’s cheapest electric car

Starting in mid-2023, South Africa witnessed the start of a new trend where automakers started to compete for the title of “the cheapest EV in the country.”

This first wave of competitors gave us the Chinese manufacturer BYD, which played its hand with the R768,000 Atto 3 crossover.

Not keen to take this threat lying down, Volvo unveiled the EX30 crossover, which retailed for R775,900 at launch.

Around the same time, GWM entered the new-energy scene with the Ora 03, which took the crown with a base price of R686,950.

These newer-generation models were a significant technological improvement over their predecessors, and the EX30 quickly became the best-selling EV in the country.

While it was undoubtedly a big step for the industry, none of the three models had managed to lower the price floor in a meaningful way.

The next shift occurred in May 2024 with the release of the BYD Dolphin, which was considerably cheaper than anything we’d seen before, with a window sticker of R539,900.

In a single move, BYD slashed the starting price of EVs by R147,050, but the story doesn’t end there.

Another Chinese company called Dayun launched a small electric hatchback called the Yuehu S5 in July 2024, which brought prices to a new low of R399,900.

The catch is that the S5 only has a 35kW e-motor and has a top speed of 100km/h, meaning it can’t reach the maximum speed permitted on South African highways.

Regardless, Dayun had the most affordable EV in the country, until now.

Enter the BYD Dolphin Surf, which launched this month with a price tag of R339,900, setting a new benchmark for affordability.

It also doesn’t have the same drawback as the S5, as the Surf has a 55kW e-motor with a top speed of 130km.

The following table shows a timeline of how the starting price of electric cars has come down in the past two years:

In the span of two years, the barrier to entry for EVs has dropped by a staggering R402,200.

To put this in perspective, it’s now cheaper to buy an electric car than a VW Polo, as the latter currently retails for R373,800.

One thing that’s quite telling about the list of EVs is that all of the models that moved the price needle are Chinese, which highlights the fact that legacy brands like Toyota, VW, and Hyundai have been reluctant to introduce their electric models here.

It remains to be seen whether we will eventually receive something like VW’s ID. line of electric cars, but until then, it’s fair to say that Chinese brands will dominate South Africa’s EV scene.