Why Aren’t There Many Electric Cars in South Africa?

Electric vehicles (EVs) have long been gaining popularity in Europe and America. Although there was little hype in the beginning, interest has grown significantly, with brands like Tesla now enjoying massive success. But why aren’t EVs more widespread in South Africa?

There are only a handful of EVs on the roads, and nowhere near as many as in other parts of the world. Considering the global shift away from internal combustion engines, you’d think South Africa would have a larger EV presence. Yet, Africa as a whole has fallen behind in adopting EVs, and there are several reasons for this. Here are 6 factors affecting the popularity of electric cars in South Africa today:

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1. Limited Availability of EV Brands

As of September 2024, only 10 car brands in South Africa offer electric vehicles. These brands include Mercedes, Audi, Porsche, BMW, Mini Cooper, Jaguar, Volvo, Maxus, BYD, and GWM. Many South Africans are loyal to brands like Toyota or Nissan, which are household names, making it more difficult for them to switch to electric vehicles when their preferred brands don’t offer EV options.

Some of EV cars available to buy in South Africa

The limited availability of EV brands also raises concerns about variety and innovation. Although fewer choices could make it simpler to pick a car, many South African consumers remain unconvinced by brands that aren’t recognised as leaders in the electric vehicle industry. The global EV market is dominated by the likes of Tesla, Ford, and Rivian—brands that have built their reputations by focusing solely on electric technology. Meanwhile, manufacturers like Mercedes and BMW, known for their combustion engines, are still catching up in the EV innovation race.

2. Government Restrictions: Import Tax Rates

In regions like America and parts of Europe, governments have incentivised the purchase of EVs by reducing import tax rates. For example, tax rates for EV imports in Europe range from 0-10%, while in the US it’s as low as 2.5%. However, in South Africa, the import tax rate for EVs stands at a hefty 25%, compared to just 18% for internal combustion vehicles. This means there is currently no financial incentive to purchase an EV, unless you’re motivated by environmental concerns such as reducing carbon emissions. Sadly, opting for an electric vehicle won’t bring any significant savings to your wallet in South Africa.

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3. Infrastructure Challenges

South Africa has yet to develop a robust infrastructure for EVs. Unlike the US or Europe, where charging stations are widespread, South Africans will struggle to find public chargers across the country. However, it’s not all doom and gloom—EV buyers do have the option of installing a home charging station, which offers some convenience.

In a significant move towards enhancing infrastructure, Zero Carbon Charge has formalised a partnership with Shanghai Magic Power Tech, a leading manufacturer of energy storage systems in China, through a Memorandum of Understanding (MOU). This agreement lays the groundwork for the installation of up to 120 electric vehicle (EV) charging stations throughout South Africa in the coming years, a development that could significantly bolster the adoption of electric vehicles in the region.

The 80kWh charging station at Mall of Africa

The main question, though, is about charging speed. South Africans are used to refuelling combustion cars in just a few minutes, but charging an EV can take much longer. Tesla’s popularity in the US is partly due to its network of superchargers, which provide up to 250kWh of power, allowing a vehicle to reach 80% charge in just 20 minutes. In South Africa, the average charging speed is only 80kWh, meaning it can take over an hour to reach a sufficient battery level.

4. Load-shedding Concerns

Another major factor discouraging potential EV buyers in South Africa is the country’s ongoing electricity supply issues. Load-shedding, a persistent problem over the years, makes it difficult for people to rely on electric vehicles. After all, a country with an unstable electricity grid isn’t the best place to operate an EV.

That said, there is hope on the horizon. South Africa has seen a significant investment in renewable energy sources, particularly solar panels, and efforts are being made to strengthen the national grid. If these investments pay off, the load-shedding issue could soon be a thing of the past, giving EVs a better chance in the market.

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5. Concerns About Battery Repairs and Replacements

One common myth surrounding EVs is that they aren’t cost-effective in the long run due to the high price of battery replacements. Depending on the brand, a new battery can cost anywhere from $7,000 to $20,000 (around R121,000 to R346,000). While this may seem steep, it’s worth noting that EVs typically require battery replacements only once every 15 years. MoreoverAdditionally, many brands offer excellent warranty options that cover battery issues, giving consumers added peace of mind.

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6. Price: Steeper Than Traditional Cars

One thing that would surely drive customers (pun intended) to buy EVs is if they were cheaper than traditional combustion cars. Unfortunately, in South Africa, that isn’t the case. The cheapest electric vehicle currently available is the GWM Ora, which starts at R686,950. This is quite steep compared to one of the most popular combustion cars in the country, the VW Polo Vivo, which has a starting price of R266,600. In contrast to Europe and other continents, where EVs are sometimes more affordable, South African customers don’t have the option to choose electric vehicles based on cost alone.

The GWM Ora - the cheapest EV available in South Africa

Final Thoughts: There’s Not Enough Appeal (Yet)

While countries in Europe, Asia, and America have swiftly adopted EVs, South Africa and the rest of the continent are still lagging behind. A combination of factors—including a lack of variety in available EV brands, inadequate infrastructure, high import taxes, and ongoing load-shedding concerns—have made the switch to electric vehicles less appealing. Until these issues are addressed, it’s unlikely that EVs will see widespread adoption in South Africa anytime soon.