The sale of New Energy Vehicles (NEVs) is rising in various countries, including South Africa. In the first half of 2023 alone, 265 970 vehicles were sold in SA, 501 of which were Battery Electric Vehicles (BEVs), according to figures from the National Association of Automobile Manufacturers of South Africa (NAAMSA).
Although this accounts for only 0.2% of all cars registered in the first half of the year, it is still significant, considering that many BEV models are expensive, and involve insurance premiums and high import duty costs.
In the entire year of 2022, only 502 electric cars were registered, meaning the number has already been equaled in the first six months of this year and is likely to double by the end of 2023.
According to NAAMSA, BMW dominates the SA market with its models such as the iX3 and the iX, representing 40% of all sales, followed by the Mini Cooper Electric (also from the BMW Group) at 13%, Volvo with its XC40 and C40 BEVs, and finally Mercedes and Audi.
Electric vehicle sales increased by over 100%
The data published by the agency in the second quarter of the year indicates that electric vehicle sales increased by over 100% compared to the same period last year, continuing the strong performance from the first quarter when sales of 18 industry brands also doubled: 740 new energy vehicles were sold in the first quarter of this year, while the number increased to 1 481 units sold in the second quarter, including 270 electric vehicles, 58 Plug-in hybrids, and 1 538 hybrids. Thus, in the last quarter, the figure was 100.7% higher than in 2022 when it stood at 738 units.
“After a significant year-on-year increase of 421.7% (from 896 units in 2021 to 4 674 units in 2022) representing 0.88% of total new vehicle sales, NEV sales for the first half of 2023 increased by an additional 47.1% to 3 146 units, compared to 2 139 units in the first half of 2022,” highlights the report.
Challenges Affecting the Domestic Market
Concurrent with this surge in sales of vehicles with this technology, SA faces its worst electricity rationing in history this year, which affects the charging source for these cars.
A survey by AutoTrader South Africa analysing concerns of potential BEV buyers, found 65.4% of them cited the high price of these cars as the biggest challenge, along with doubts about charging duration and the lack of public charging infrastructure.
As exports of these types of vehicles increased by 13.8% compared to the second quarter of 2022, NAAMSA emphasized the need to promote policies that encourage NEV manufacturers to invest in the country.
“Promoting a significant transition to NEVs in SA will require a careful balance between stimulating sustained demand for NEVs in the domestic market, establishing adequate renewable energy-based charging infrastructure, and supporting a shift in South Africa’s vehicle production,” the association said.
Despite challenges, experts believe the SA market for these vehicles will grow significantly in the coming years, projecting revenues of $30 million in 2023.
