Anticipating Record-Breaking Electric Vehicle Sales in South Africa for 2023 – A Remarkable 85.4% Surge from the Previous Year’s Low Base!

2024-02-02 News 387 Views

South African electric car sales hit new highs in 2023, but still a trickle

Electric vehicle sales rose 85.4% last year from a low base as more models were launched at better prices

South Africa’s new energy vehicle (NEV) sales reached new highs in 2023 as more models were launched and prices became more affordable.

Speaking at the company’s annual State of the Automotive Industry event in Midrand on Thursday, Toyota Motor Corporation president and chief executive Andrew Kirby said South Africa is seeing increasing demand for new energy vehicles in line with global trends , which includes hybrid vehicles, plug-in hybrid vehicles and pure electric vehicles (electric vehicles). Sales of new energy vehicles increased to 7,693 units in 2023, a 65% increase from the previous year, while the number of available models increased from 40 to 66.

Sales growth is coming from a smaller base – NEVs accounted for 1.45% of all new car sales in South Africa in 2023 – with the largest volume contributor coming from hybrid models (84%). Last year, electric vehicles accounted for 12% of new energy vehicle sales, and plug-in hybrids accounted for 4%.

Hybrid car sales in the country were 6,495 units in 2023, a 60% increase from 4,050 units in the previous year. The Corolla Cross Hybrid is by far the most popular car in the segment, while rivals include the Haval Jolion and H6 hybrids and the Honda Fit hybrid.

With the introduction of electric vehicle models and lower prices, sales of pure electric vehicles increased by 85.4% year-on-year, from 502 to 931 units.

The number of electric vehicles sold locally has increased significantly from 17 in 2022 to 31 last year, with the launch of cars such as the Great Wall Euler, BYD Atto 3, Volvo C40 and Mercedes-Benz EQS.

When premium brands such as Jaguar, Audi and Porsche launched electric vehicles in South Africa a few years ago, they sold them for seven figures, some well over R4 million, targeting wealthy early adopters of zero-emission vehicles. Their high price, combined with long charging times and limited charging networks, has kept sales at a sluggish pace.

The past few years have seen the launch of more affordable sub-R1m battery-powered cars such as the Mini Cooper SE, BYD Atto 3 and Great Wall Ora 03 – the latter being China’s cheapest electric car with prices starting at R686,950.

Several new models launched in the country this year are expected to further spur EV sales, including the Volvo EX30, due in the coming months, which will be the most affordable electric SUV in the country, with prices starting at R775,900 for the entry-level version. BYD is expected to launch the Dolphin as a cheaper hatchback option alongside the R768,000 Atto 3 crossover launched last year.

In 2024, the Volvo EX90, latest-generation Mini Cooper SE and Countryman SE, Fiat 500e, Lotus Eletre, JAC T9 Double Cab and Maserati Grecale Folgore will further strengthen the position of electric vehicles.

In early 2025, Toyota will launch the bZ4X and Lexus RZ 450e as the first all-electric models from both brands.

Local EV sales are expected to continue posting high percentage annual growth for the foreseeable future without significantly impacting the overall new car market – the 931 EVs sold last year represented just 0.17% of the 532,098 units sold.

While prices below R700 000 make electric vehicles affordable to more buyers, prices are still too high for mass market adoption, and with the government not planning to close the price gap through tax incentives, this is expected to This situation is not going to change anytime soon. As has happened in other countries, there are differences between electric vehicles and internal combustion engine (ICE) vehicles.

Import duties on electric vehicles are 25%, compared with 18% for internal combustion engine vehicles, resulting in a significant price premium for battery-powered vehicles, but Trade, Industry and Competition Minister Ebrahim Patel recently said , there will be no reduction in electric vehicle tariffs in the short term as load shedding and small public charging infrastructure make it impractical to promote the sale of more electric vehicles in South Africa.