South Africa is making the transition to electric cars at a breakneck pace, with sales and production figures growing at an exponential rate.
Naamsa recently published its South African Automotive Market Analysis bulletin for 2023, which details how the local car industry is performing and how it compares to other markets.
Included in the report is an overview of the country’s new energy vehicle (NEV) statistics for the year-to-date, measured from May 2022 to May 2023, which make for an impressive set of statistics.
New-energy sales
New-energy vehicles, which refer to traditional hybrids (HEV), plug-in hybrids (PHEV), and electric vehicles (EV), saw a 34.30% increase in sales within the last year, going from 1,920 units to 2,578 units.
HEVs accounted for the lion’s share of sales, with 2,150 units purchased in 2023 compared to 1,685 in 2022 – a 27.6% improvement – while PHEVs saw a small decline of 8.8% from 68 units to 62 units.
Battery-electric vehicles, on the other hand, saw a massive jump of 119.20%, going from 167 units to 366 units in a single year – a significant achievement given that the cheapest EVs in South Africa retail for well over R700,000.
| NEV Sales | YTD May 2022 | YTD May 2023 | % Change |
|---|---|---|---|
| Electric | 156 units | 266 units | 119.2% |
| Plug-in Hybrid | 68 units | 62 units | -8.8% |
| Traditional Hybrid | 1,685 units | 2,150 units | 27.6% |
| Total | 1,920 units | 2,578 units | 34.3% |
The country also welcomed the addition of two new NEV brands between April and May 2023, bringing the number of electrified carmakers up to 18 different names.
Toyota was noted as the most popular NEV manufacturer, as it managed to sell 1,555 HEVs, while Haval (a relative newcomer to the NEV landscape) came second with 539 hybrid purchases.
BMW was the most popular EV brand with 210 recorded sales, while Volvo is currently leading the PHEV space with 34 units finding new homes.
Supply and demand
South Africa has been producing traditional hybrids for a few years, but within the last 12 months, it has also started making plug-in models leading to a 122.9%-increase in NEV output.
While HEV production saw a year-on-year dip of 28.9% since May 2022 to 1,003 units in May 2023, PHEV output went from zero to 2,142 units during the same period, most of which are being exported to foreign markets.
| NEV Production | YTD May 2022 | YTD May 2023 | % Change |
|---|---|---|---|
| Plug-in Hybrid | 0 units | 2,142 units | |
| Traditional Hybrid | 1,411 units | 1,003 units | -28.9% |
| Total | 1,411 units | 3,145 units | 122.9% |
On the other side of the coin, the importing of NEVs saw a staggering 229.40% increase, as 521 units made their way to local shores last year, compared to 1,716 units this year.
Again, HEVs were responsible for most of the demand, as local motorists were responsible for a 350.3% uptake – translating to a new peak of 1,288 units compared to 286 units in the last period.
Meanwhile, the 366 EVs that were sold in South Africa within the last year were all imported, as no automaker is currently making battery-electrics locally.
| NEV Imports | YTD May 2022 | YTD May 2023 | % Change |
|---|---|---|---|
| Electric | 167 units | 366 units | 119.2% |
| Plug-in Hybrid | 68 units | 62 units | -8.8% |
| Traditional Hybrid | 286 units | 1,288 units | 350.3% |
| Total | 521 units | 1,716 units | 229.40% |
Energy investment
Another positive development to take note of is the fact that the African continent’s investment in clean energy continues to grow, while its commitment to fossil fuels is on the decline.
In 2015, Africa invested a total of 104 billion U.S. dollars (R1.9 trillion) in fossil fuels, compared to 26 billion USD (R483 billion) for renewables.
In comparison, fossil fuel spending in 2023 came to 40 billion USD (R743 billion), while new energy saw an investment of 36 billion USD (R669 billion), meaning that if the current trajectory continues, the continent will very soon be spending more money on things like solar and wind than coal and gas.
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