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Is South Africa Really Ready For Electric Vehicles?

Jul 16, 2024 | Uncategorised

Electric vehicles (EVs) have been gaining popularity globally, and while it took a while to reach our shores, the EV market in South Africa is playing catch up. This is apparent if you read up on this sector. There are a number of articles and thought leadership pieces talking positively about the growth of this market.  

For starters, the number of charging stations are increasing at a rapid rate across the country. There’s also talk of increased government backing and further private sector investments, as well as published data, such as the Automotive Business Council (Naamsa) report in 2023, which stated that new energy vehicle sales had increased by 431,7% from 896 units in 2021 to 4,764 units in 2022.  

It seems that EVs are on the rise, but is South Africa truly ready? Let’s find out. 

Growth Isn’t As Fast As We Think 

In spite of multiple positive reports that lead us to believe that the South African EV market is poised for major growth, we cannot ignore the fact that by the first quarter of 2023, only around 1,700 units were in use. Added to that, EVs are still relatively more expensive than combustion engine cars, and charging stations remain limited. A map of the country’s publicly accessible charging points has risen to approximately 350, however these stations are mostly concentrated in wealthy suburbs and skirt around poorer districts. 

If you’ve a cynical eye, EVs could be considered a tool to further deepen the inequalities in a country that is already fighting imbalances. Many observers have suggested that the government could address this inequality by lowering import duties on EVs and offering tax incentives to charging station providers that target less well-off areas, thereby offsetting these these socio-economic challenges, and allowing lower-income communities to benefit from the shift to EVs. Not to mention, the rise of EVs could allow all South Africans to circumvent the inflationary impact of oil price increases. 

All things considered, it makes sense that the growth in this market progressing slowly. 

Let’s Talk About Infrastructure 

A major (and obvious) barrier to EV adoption is the lack of basic infrastructure in South Africa. The fact is that our unreliable electricity supply and infrastructure means that the country does not have the necessary capacity to handle a significant increase in EV charging demand. Sure, you will spend less on petrol or diesel and reduce your environmental impact but think about the impact on our fragile grid if more people buy into electric cars. 

You would also need to take unplanned power cuts and loadshedding into account. There’s no simple fix when your car needs to charge, and your neighbourhood has suddenly gone to level six. 

Possibly, your next thought is to use solar power, however it’s worth noting that you would need to invest in a sizeable system in order to run your household and charge your car. Not many people have the resources to invest so heavily into solar. 

The Questionable Environmental Impact  

One of the most significant impacts of the growth of EVs is the reduction in dependence on fossil fuels. Traditional combustion engine vehicles rely on petrol and diesel, both of which are major contributors to greenhouse gas emissions. It’s simple really. By switching to electric vehicles, which run on electricity rather than petrol or diesel, South Africa can significantly reduce its carbon footprint.  

That said, we have to acknowledge that typically EVs require lithium batteries and lithium mining at the required quality has a devastating affect on the environment. Let’s not forget that we then import these products from Canada and China – so the ecological implications here must be considered. 

Fear Of The Range 

If you run out of petrol or diesel, as an AA Member you can call us or a friend or family member for assistance. However, if you’re driving an EV and your battery dies, you’re stuck until you can get your car transported to the nearest charge point.  

Of course, it’s not hard to simply use the average range of the EV to make sure that there are circumstances in which a flat battery occurs. Drivers will just need to keep in mind that their range will decrease slightly over time, as the battery performance degrades. Drivers will also need to make sure that every long-distance trip in an EV is planned according to where the charging stations are location. A charging station every 400 km (depending on the range of the EV) or less is required in order to avoid the risk of being stranded.  

Given that South Africa is still extremely new to the EV game, it’s likely that people are hesitant to buy a car that could run out of juice and need heavy-duty assistance to get going again. 

Higher Repair And Service Costs 

The cost of charging and therefore running an EV is less than a combustion engine vehicle. It can cost around R200 in electricity at average municipal rates to fully recharge an EV with a range of 400 km, while a full tank of petrol or diesel, could cost R1,000 or more for a range of 500–700 km.  

That’s a difference of 50c per kilometre versus R2 and R1.43 per kilometre. 

But the actual vehicles, plus the parts and spares are specifically designed and manufactured for this emerging technology. As a result, these are more expensive than what we’re used to. The mechanics and technicians who work on EVs also need specialised training, making these vehicles way more expensive to service or repair after an incident.  

Let’s not forget that these higher repair and replacement costs could mean that car insurance premiums could be higher for an EV. As South Africa continues to work through the economic challenges brought on by political unrest, the 2020/2021 Covid pandemic, and a myriad of other issues, you could argue that we are economically not ready for this transition. 

Feeling Informed? 

Overall, while the growth of electric vehicles in South Africa is expected to travel upwards, and while there are significant benefits to both the environment and economy, it’s debatable whether South Africa is ready for this market to expand.  

What we can say, is that the South African automotive industry will continue to evolve, so make sure that you stay informed about the latest innovations and how they can benefit your driving experience – and your wallet.  

Remember, the AA Inform team is here to provide you with reliable and helpful information. That’s why we have developed a variety of tools, from our Fuel Consumption Calculator and Car Affordability Calculator to our Car Finance Calculator and featured articles. 

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