Why you should buy an electric car in South Africa

President Cyril Ramaphosa acknowledges SA’s motor manufacturing industry is vulnerable

President Cyril Ramaphosa used the SA Auto Week in Cape Town to announce that the country was close to finalising a New Energy Vehicle (NEV) policy that would incentivise the manufacture and sale of electric vehicles.

This news was widely welcomed by the industry, as many stakeholders fear that South Africa’s automotive manufacturing industry - which currently exports around two thirds of its vehicle output - would get left behind as the world transitions to electrified vehicles.

South Africa’s automotive industry accounts for about 15% of the country’s total exports and makes a significant contribution of about 6% towards the country’s GDP.

A key concern is that the European Union, which is the country's largest export destination, plans to ban the sale of petrol and diesel powered cars from 2035 onwards.

“As many of our major trading partners rapidly shift towards EVs, it is imperative that we remain part of this global supply chain. This is a major industrialisation opportunity for South Africa and the region, particularly within the context of the African Continental Free Trade Area,” Ramaphosa said during his EV policy announcement on Thursday.

 
SA’s electric car push will make no sense unless the power sources are cleaner

President Cyril Ramaphosa announced on Thursday that the government was finalising a New Energy Vehicle (NEV) plan that would see the country subsidising both the manufacture and sale of electric and hybrid vehicles in South Africa.

Speaking at Naamsa’s SA Auto Week on Thursday, Ramahposa emphasised the need to create a greener future and to ensure that our manufacturing industry remains relevant to global export markets.

Although the latter point is most certainly valid, there are concerns about the country’s charging infrastructure and Eskom’s predominantly coal-powered grid.

Local charging station company Zero Carbon Charge (otherwise known as Charge) has welcomed Ramaphosa’s announcement, particularly in light of electric vehicles (EVs) currently facing a 25% import tax penalty in the country, versus 18% for internal combustion vehicles.

However, it stressed that in order for EVs to contribute towards a reduction in South Africa’s carbon emissions, they would need to be powered by eco-friendly energy sources.

 
How the auto industry could be affected by Donald Trump’s US presidency

Markets for the most part reacted positively to Donald Trump’s 2024 US election victory, with Wall Street’s main indexes jumping to record highs, but some auto industry stocks hit multi-year lows over fears of punitive tariffs and a turn-back on electric vehicle policies.

While Tesla shares surged by 15% on news that Elon Musk would be appointed as head of a government efficiency commission, shares in BMW, Volkswagen, Porsche and Mercedes-Benz fell by between 5.2% and 7.7%, Reuters reported. The US is Germany’s biggest export market for cars, accounting for 12.9% of its vehicle exports.

As BMW stock hit four-year lows, CEO Oliver Zipse sought to assure investors that punitive tariffs under Trump, which have been threatened for Europe, would not affect the company significantly as its Spartanburg plant in North Carolina currently produces over 400,000 vehicles per year in that country.

China’s largest EV maker BYD saw its shares drop by 3.6%, while US-listed Nio and Li Auto lost 5.3% and 3.3% respectively, NBC Los Angeles reported.

Trump has previously mooted a 10% tariff on imports from all foreign nations and a much higher 60% tariff for Chinese imports. While most global automakers have factories in the US, they still rely on imports to flesh out their model ranges to meet consumer demand.

South African vehicle manufacturing operations could also be affected by the Trump presidency.

For instance, some exporters rely on the African Growth and Opportunity Act (AGOA) for duty-free access into the US market. Should this trade policy be done away with under a more protectionist US government, it would certainly have a detrimental effect on local manufacturers that export to the US.

Uncertainty over electric cars

Jeff Schuster, Vice President Research Automotive at GlobalData, said the global auto sector could see a significant mid-term impact from the new Trump Presidency in the areas of trade, electric vehicle (EV) transition and regulations.

“We anticipate that the current state of protectionism will be intensified under Trump, with Chinese imported vehicles and technology being targeted.”

Schuster said the transition to EVs would be hindered under Trump’s administration.

“His focus on reducing oil/fuel prices and rolling back emissions standards could lead to a 15-20% decrease in the market share of battery electric vehicles (BEVs) in the US by 2030 compared to our base forecast.

 
Here’s how many electric cars market leader Volvo has sold in South Africa in 2024

Although electric vehicles (EVs) have yet to make a meaningful impact on South African sales charts, Volvo is taking an early lead in this space.

The Swedish carmaker announced this week that it sold 467 electric vehicles in Mzansi between January and September 2024, which equates to an average of 51 units per month.

Among these the EX30 emerged as the country’s top-selling EV in the first three quarters of the year with 348 sales, or 39 per month on average. It was followed by the XC40 at 96 (10 per month) and the C40 at 23 (or 2.5).

Sadly it’s impossible to tell which its nearest rivals are on the sales charts as there is a complete lack of transparency among the other car companies that sell EVs. BMW, Mercedes and BYD, for instance, do not release detailed monthly sales figures to Naamsa.

Among those that do report, GMW’s Ora sold an average of just two units per month in the past three months, while Jaguar’s I-Pace, which is being run out at present, found just one home per month.

South Africa’s cheapest EV at present is the Dayun S5, which starts at R399,900, albeit as a city-sized car with a top speed of just 100km/h. Next up is the BYD Dolphin at R539,900 and the GWM Ora at R686,950. Volvo’s EX30 starts at R791,900 and its range also includes the high-performance Twin Motor Performance model, priced at R1,055,900, which accelerates from 0-100km/h in 3.6 seconds.

The German luxury options start at R1,179,400 for the Mercedes EQA250 and R1,205,000 for the BMW iX1.

 
New Electric Cars for SA in 2025

The year 2025 is charging up with new electric cars due to arrive in South Africa. Take a look at what’s coming and let us know what EV you are looking forward to most!

We recently published an extensive list of all the new cars coming to South Africa in 2025 and the new year will also see new electric cars reaching South Africa.

While most local buyers prefer Internal Combustion Engine (ICE) cars, the market for electric cars, hybrids and plug-in hybrid cars is increasing and there are a growing number of car brands offering New Energy Vehicles (NEVs) in South Africa.

This list focuses on all the new electric cars due to reach South Africa in 2025. Note that this list is generated based on information received directly from manufacturers as well as from information published in the public domain. Timings are subject to change and serve as a guideline.

 
Finance Minister urged to prioritise electric car incentives and off-grid charging infrastructure

South Africa’s carbon reduction targets need to be put into motion with improved support for the uptake of electric vehicles (EVs), says Zero Carbon Charge (Charge).

The organisation, which specialises in off-grid charging stations, has urged Finance Minister Enoch Godongwana to provide some direction on EV incentives during his upcoming Budget Speech.

Joubert Roux, Executive Chairman of Charge, argues that a six-year import tax holiday for EVs would allow battery cars to gain traction in the market while also giving carmakers the necessary time to transition without jeopardising the industry.

“If a tax holiday is not feasible, then the import tax on EVs should at least be equal to - or lower than - that of internal combustion engine (ICE) vehicles,” Roux said.

“Currently, an EV is taxed at 25%, while an ICE vehicle is taxed at 18%. It makes no sense to advocate for decarbonisation while carbon-heavy vehicles remain cheaper than zero-emission EVs,” he added.

 
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