Summary
- In 2024, battery electric vehicle (BEV) sales in South Africa surpassed 1,000 units for the first time ever, with a total of 1,257 BEVs sold, a 35% increase from the previous year.
- The Volvo EX30 was the top-selling BEV in South Africa, capturing 32.3% of the market, followed by the BMW iX3 and Volvo XC40.
- BEVs only accounted for 0.24% of the overall vehicle market in South Africa in 2024, with slow sales attributed to limited model variety, high import duties, and taxes on electric vehicles.
- Affordable models like the Volvo EX30 were popular among South African buyers, while some premium models struggled to gain traction due to pricing.
- BYD, a major BEV manufacturer, has launched models in South Africa but has yet to register any sales, indicating a potential opportunity for more affordable BEVs in the market.
Article
Battery electric vehicle (BEV) sales in South Africa exceeded 1,000 units for the first time in 2024, with 1,257 units sold, representing a 35% increase from the previous year. The top-selling BEVs included the Volvo EX30, BMW iX3, and Volvo XC40, however, BEVs only accounted for 0.24% of the total market share, highlighting the slow growth of EV sales in the country. The limited variety of BEV models, coupled with high import duties and taxes on electric vehicles, have made them significantly more expensive compared to ICE vehicles in South Africa.
Taxes on EV imports in South Africa are set at 25%, as opposed to 18% for ICE imports, making the cost of EVs double that of the average new ICE vehicle. Despite this, premium models have been more competitively priced, leading to some success in the market. BMW, Mercedes-Benz, and Audi saw fluctuations in sales, with some models experiencing drops in sales in 2024. South Africans are increasingly looking for more affordable BEVs, with the Volvo EX30, which starts at around $43,000, taking over 30% of new BEV sales due to its relatively lower price compared to other models in the market.
There is a demand for more affordable BEVs in South Africa, with consumers looking for options below $53,540, apart from the premium models available. Despite the presence of companies like BYD in the country, sales of their models, including the ATTO 3, the Dolphin, and the Seal have yet to be registered. BYD, as one of the leading BEV manufacturers globally, could potentially help boost EV sales in South Africa with its more affordable models that could attract a wider customer base. The South African BEV market is behind similar markets like Thailand and Australia, and efforts are needed to catch up.
Despite challenges such as high import duties and limited model variety, the South African BEV market is showing signs of growth and potential. The worst of electricity rationing in the country seems to be over, providing a more stable environment for EV adoption. With more BEV models set to launch in 2025, the year is expected to be significant for BEV sales in South Africa. Brands like Chery and Dongfeng are also looking to introduce more affordable BEV models in the country, which could further stimulate interest and sales. Efforts are required to address barriers to EV adoption and accelerate the growth of the BEV market in South Africa.
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