The sales of battery-electric vehicles (BEVs) in South Africa have breached the 500 units per year mark for the first time ever. Last year, 502 BEVs were sold in South Africa, up from 218 in 2021. This is a significant milestone, however, it is still a far cry from the 1 million vehicles sold in Australia in 2022.
The slow uptake of BEVs in South Africa is due to the limited variety of BEV models available, coupled with the high import duties and taxes levied on electric vehicles. This means that most of the vehicles available in the global market would end up being quite expensive compared to their equivalent ICE vehicles if they were introduced in South Africa. This price difference would be more prominent in the smaller vehicle segments, making it a bit challenging to sell those EVs. Taxes in South Africa are set at 18% for ICE imports vs 25% for EV Imports. There is also the ad valorem tax for EVs which pushes the cost of an EV to more than 2X that of the average price of a new ICE vehicle of a similar make/model in most cases.
Australia is a market where BEV sales have also been slow and are now showing signs of traction. For a long time, Australia also didn’t offer much in terms of incentives or policy compared to other countries in the developed world such as those in Europe, China, and the US. However, despite this, over 30,000 BEVs were sold in Australia in 2022 compared to only about 500 in South Africa. This gap looks way too big if you compare with the total size of the vehicle market.
To bridge this gap, OEMs with EVs that are doing well in Australia should be encouraged and less skeptical about how their EVs will fare if introduced to the South African market. Additionally, more affordable BEVs from OEMs such as Hyundai, Kia, MG, and BYD should be offered in South Africa to help move sales even under the current environment. Furthermore, Tesla should be offered in the market as many people in South Africa are waiting for them before switching to an EV.
In conclusion, while sales of BEVs have been slow in South Africa compared to similar auto markets around the world, there is still potential for growth if more models are made available and incentives are offered. With the right policies and incentives in place, South Africa could achieve sales of around 7,500 BEVs under the current tax environment.
FAQ
Q1. How electric car batteries work?
A1. Electric car batteries are typically lithium-ion batteries that store energy and power the motor. They are recharged by plugging the car into an electric outlet or charging station.
Q2. What electric car has the longest range?
A2. The Tesla Model S has the longest range of any electric car currently on the market, with a range of up to 370 miles on a single charge.
Q3. How electric car batteries are recycled?
A3. Electric car batteries are recycled by breaking them down into their component parts and then separating out the metals, plastics, and other materials for reuse. The metals are melted down and reused in new products, while the plastics and other materials are recycled into new products.
