Market Insights Mobility Electric Vehicles

Battery Electric Vehicles - South Africa

South Africa

The projected revenue in the Battery Electric Vehicles market for South Africa is expected to reach US$51.1m in 2024.
This market is anticipated to experience an annual growth rate of 11.71% (CAGR 2024-2029), resulting in a projected market volume of US$89.0m by 2029.
By 2029, it is expected that the unit sales of Battery Electric Vehicles market in South Africa will reach 1,442.00vehicles.
In 2024, the volume weighted average price of Battery Electric Vehicles market in South Africa is estimated to be US$61.9k.
When considering the international perspective, it is evident that China will generate the highest revenue in the Battery Electric Vehicles market, with US$210,800m in 2024.
Despite the growing global demand for Battery Electric Vehicles (BEVs), the adoption rate in South Africa remains relatively low due to limited charging infrastructure and high vehicle costs.

Key regions: United Kingdom, Japan, Netherlands, France, United States

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Analyst Opinion

The Battery Electric Vehicles market in South Africa is experiencing significant growth and development.

Customer preferences: South African consumers are increasingly showing a preference for Battery Electric Vehicles (BEVs) due to their environmental benefits and cost savings. BEVs produce zero emissions, making them an attractive option for environmentally conscious consumers. Additionally, the lower maintenance and fuel costs associated with BEVs compared to traditional combustion engine vehicles are appealing to cost-conscious consumers.

Trends in the market: One of the key trends in the South African BEV market is the increasing availability of charging infrastructure. As more charging stations are installed across the country, range anxiety - the fear of running out of battery power - is reduced, making BEVs a more viable option for consumers. This trend is driven by both government initiatives and private investments in charging infrastructure. Another trend in the market is the introduction of more affordable BEV models. Initially, BEVs were seen as luxury vehicles and were priced accordingly. However, as technology advances and economies of scale are realized, the cost of producing BEVs has decreased. This has allowed manufacturers to introduce more affordable models, making them accessible to a wider range of consumers.

Local special circumstances: South Africa has a unique set of circumstances that contribute to the development of the BEV market. The country is heavily dependent on imported fossil fuels, which makes it vulnerable to fluctuations in global oil prices. By transitioning to BEVs, South Africa can reduce its reliance on imported oil and improve energy security. Additionally, South Africa has a high level of solar energy potential. The abundant sunshine in the country makes it an ideal location for solar-powered charging stations, further promoting the adoption of BEVs. The government has recognized this potential and has implemented policies to encourage the use of renewable energy sources for charging infrastructure.

Underlying macroeconomic factors: Several macroeconomic factors are driving the development of the BEV market in South Africa. The government has implemented various incentives and subsidies to promote the adoption of electric vehicles, including tax breaks and grants for purchasing BEVs. These incentives make BEVs more affordable for consumers and encourage their adoption. Furthermore, global efforts to combat climate change and reduce greenhouse gas emissions are influencing the development of the BEV market in South Africa. As a signatory to the Paris Agreement, South Africa is committed to reducing its carbon footprint. The transition to BEVs aligns with these global efforts and allows the country to contribute to the reduction of greenhouse gas emissions. In conclusion, the Battery Electric Vehicles market in South Africa is growing due to customer preferences for environmentally friendly and cost-effective vehicles. The increasing availability of charging infrastructure and the introduction of more affordable BEV models are driving this growth. South Africa's special circumstances, such as its reliance on imported oil and abundant solar energy potential, further contribute to the development of the BEV market. Government incentives and global efforts to combat climate change also play a significant role in the market's growth.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).