Most affordable Tesla you can import to South Africa

Importing the most affordable Tesla from the United Kingdom (UK) to South Africa would cost over R1.5 million, an analysis by MyBroadband shows.

The landing price for the popular electric vehicle (EV) would be around 70% higher than its price tag in the UK.

Despite not selling a single car in South Africa, Tesla is a highly recognised brand in the country and appears to be sought-after among local car buyers.

A poll by MyBroadband asking which EV brand our readers were most likely to buy found that only local favourite Toyota was more in demand — and by a very slim margin.

There are currently at least three specially-imported Teslas confirmed to be in South Africa.

One of these cars — a Model X — was imported by South African energy company Rubicon to promote its e-mobility business and drive consumer awareness around EVs.

This car and a Model Y imported by a private buyer were bought from the UK.

The country is one of just a handful of right-hand drive (RHD) markets where Tesla operates.

South Africa does not generally allow imports of left-hand drive models like those in the US or Tesla’s nearest market to South Africa — Brazil.

The only exceptions are vintage cars from before the turn of the century or models converted to right-hand drive, a process which can be very expensive.

The UK is one of the closest Tesla markets to South Africa with RHD models with frequent vehicle shipments, making it the cheapest option for importing one.

Despite this, importing even the most affordable Tesla is very expensive due to South Africa’s high car taxes.

Apart from petrol and diesel cars imported from Europe and the UK, which have a lower 18% duty thanks to a preferential trade agreement, all vehicles imported to South Africa have a 25% duty.

That includes EVs made in Europe and the UK, China, India, and other major vehicle producers.

In addition, there is an ad valorem or “luxury” tax ranging between 5.25% to 30%, depending on the car’s retail value.

Designed to protect the local manufacturing industry, the South African Revenue Service (Sars) started taxing all cars valued at R250,000 or more about three decades ago.

At that time, a BMW 5-series, Audi A6, Mercedes-Benz E-Class, or Volvo 850 were all priced below R250,000, so the vehicle truly had to be high-end to qualify for ad valorem.

These days, cars selling for R250,000 or lower are in short supply and considered strictly budget vehicles.

Despite the drastic increase in car prices, Sars has not adjusted the ad valorem tax on car imports, meaning even budget models are subject to this tax.

Had the ad valorem been adjusted in line with inflation, the minimum value for a car to be subject to this tax would have been around R1.3 million in 2024. For reference, the BMW 5-series now costs around R1.2 million.

Crunching the numbers

We calculated the cost of bringing the most affordable Tesla Model 3, which retails from £39,990 (R922,546) in the UK, to South Africa.

The 25% duty on this car would be R230,637, compared with R166,058 for a petrol or diesel car from the UK.

However, because the 15% VAT is calculated on the retail price plus customs duty and a 10% mark-up, the higher duty has a greater ripple effect.

The ad valorem rate of 21.39% on a car priced at R922,546 adds R197,343 to the car’s total cost.

The total landing price with estimated shipping and insurance costs on the Tesla Model 3 worked out to nearly R1.57 million, 70% more expensive than the price in the UK.

If ad valorem were adjusted with inflation and the customs duty were reduced to 18%, like all petrol and diesel cars imported from the UK, the additional taxes would drop from R647,196 to R345,678.

That would lower the cost of a Tesla Model 3 import to roughly R1.27 million, which is still 37% more than its UK price tag.

MyBroadband also calculated the cost of importing the UK’s two most affordable EVs — the Dacia Spring and the Citroën e-C3.

These had significantly lower ad valorem tax rates of 7.55% and 11.43%, respectively, due to cheaper retail prices.

However, neither could be considered a luxury vehicle by today’s standards, and their specifications leave much to be desired compared to locally available EVs with similar pricing.

The table below summarises the cost of importing a Tesla Model 3, Dacia Spring, and Citroën e-C3 to South Africa from the UK, with a breakdown of the taxes and shipping fees.

Tesla Model 3 — From R1.57 million

• Power/torque: 194kW/340Nm
• 0-100km acceleration: 5.8 seconds
• WLTP range: Up to 554km
• Charging speeds: 170kW DC/11kW AC

Dacia Spring — From R552,971

• Power/torque: 33kW/125Nm
• 0-100km acceleration: 19.1 seconds
• WLTP range: Up to 230km
• Charging speeds: 34kW DC/6.6kW AC

Citroën e-C3 — From R821,486

• Power/torque: 83kW/120Nm
• 0-100km acceleration: 11.5 seconds
• WLTP range: Up to 260km
• Charging speeds: 100kW DC/7.4kW AC