South African drivers kissing dirty cars goodbye

The number of new energy vehicles (NEVs), including electric cars, plug-in hybrids, and traditional hybrid vehicles, sold in South Africa has increased rapidly since 2021.

The National Association of Automobile Manufacturers of South Africa (Naamsa) tracks NEV sales in the country quarterly, revealing that 15,589 NEVs were sold in 2024.

A relatively small number of NEVs were sold in South Africa in 2018, 2019, 2020, and 2021, after which sales increased rapidly.

A total of 202 NEVs were sold in South Africa in 2018, 407 in 2019, 324 in 2020, and 896 in 2021.

NEV sales jumped by 3,778 units between the end of 2021 and 2022, when 4,674 NEVs were sold in South Africa.

This impressive growth slowed slightly between the end of 2022 and the end of 2023, during which period 3,020 NEVs were sold locally.

However, NEV sales rose sharply in South Africa in 2024, by the end of which 15,589 units were sold — more than double the number of NEVs sold the year before.

Moreover, NEV sales in the first quarter of 2025 have gotten off to a good start, with 3,487 units sold — up from 3,058 sold in the first quarter of 2024.

All three technologies included under the NEV umbrella—electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and traditional hybrids (HEVs)—use electric motors and batteries to reduce fuel consumption.

In the case of EVs, these vehicles use no fuel and are purely battery-powered.

HEVs, such as Toyota’s popular Corolla Cross Hybrid, combine an internal combustion engine with an electric motor and a small battery during acceleration, resulting in lower fuel consumption.

These vehicle can charge their battery using the engine when it runs low, and the battery also charges through regenerative braking. It never has to be charged through external power sources.

PHEVs, such as the Ford Ranger PHEV and BMW X3 30e xDrive, combine batteries, electric motors, and internal combustion engines. However, their batteries are relatively large compared to HEVs.

This enables them to run on minimal fuel when the battery is charged. It enables electric-only driving in many models, meaning drivers don’t have to consume fuel over shorter-distance trips.

These vehicles are primarily charged through an external power source, but they can also top up battery capacity using their internal combustion engine and regenerative braking.

EVs only use electric motors and batteries. While they can regerate a bit of battery power through braking, they are primarily charged through external sources.

The chart below tracks all NEVs sold in South Africa each year from 2018 to 2024.

Bad news for locally-made hybrids and EVs

The International Trade Administration Commission (ITAC) recently proposed a 15% import tariff on NEV batteries, in a move to try and boost local manufacturing capabilities.

This could prove problematic for brands like Toyota, Ford, BMW, and Mercedes in South Africa, as they assemble NEVs locally using batteries imported from other countries.

The ITAC said it will renew the list of materials qualifying as standard materials under the Automotive Protection and Development Programme.

It added that the review will include measures to support battery manufacturing in South Africa.

“These materials and minerals, to the extent that they can be found in viable deposits and reserves in South and Southern Africa, present an opportunity to increase manufacturing capabilities,” the ITAC said.

“Several minerals associated with battery electric vehicle production, including all hybrid derivatives, are not currently contained in the list of standard materials.”

The commission made several proposals, the first of which is expanding the list of standard materials to include the following, provided they are sourced from the SADC region:

• Rare earth minerals
• Iron
• Lithium
• Graphite
• Copper
• Cobalt Sulfate
• Manganese Sulfate
• Nickel Sulfate
• Polymers
• Sodium Carbonate

It is also considering increasing the customs duty applicable to NEV batteries to the World Trade Organisation-bound rate of 15% ad valorem.

It says the move will “provide tariff support for all future manufacturers of batteries, which can be accomplished by creating an eight-digit tariff subheading that will separate the batteries from cells.”