Electric Vehicles - South Africa

South Africa

The South African Electric Vehicles market is anticipated to witness a significant growth in revenue, with projections indicating a reach of €86.6m in 2024.
This growth is expected to continue at an annual growth rate of 8.92% (CAGR 2024-2029), resulting in a projected market volume of €132.7m by 2029.
Furthermore, unit sales in the Electric Vehicles market are estimated to reach 1,777.00vehicles in 2029.
The volume weighted average price of Electric Vehicles market in South Africa is expected to be approximately €79.1k in 2024.
From an international perspective, it is evident that China will generate the highest revenue in the Electric Vehicles market, with a projected revenue of €349,100m in 2024.
South Africa is experiencing a growing demand for electric vehicles, driven by government incentives and increasing environmental consciousness.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

The Electric Vehicles market in South Africa has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: South African consumers are increasingly interested in electric vehicles due to their environmental benefits and cost savings. Electric vehicles produce zero tailpipe emissions, helping to reduce air pollution and combat climate change. Additionally, electric vehicles have lower operating costs compared to traditional gasoline-powered vehicles, as they require less maintenance and have lower fuel costs. These factors have made electric vehicles an attractive option for environmentally conscious consumers and those looking to save money in the long run.

Trends in the market: One of the key trends in the South African electric vehicle market is the increasing availability of charging infrastructure. As more charging stations are installed across the country, the range anxiety associated with electric vehicles is being alleviated, making them a more viable option for consumers. The government and private companies are investing in the development of charging infrastructure, which is further driving the adoption of electric vehicles. Another trend in the market is the introduction of more affordable electric vehicle models. In the past, electric vehicles were considered luxury items and were priced out of reach for many consumers. However, as technology has advanced and economies of scale have been achieved, the cost of electric vehicles has decreased. This has made electric vehicles more accessible to a wider range of consumers, further boosting their popularity in the South African market.

Local special circumstances: South Africa has a high level of solar energy potential, making it an ideal market for electric vehicles. Solar power can be used to charge electric vehicles, reducing the reliance on the grid and further enhancing the environmental benefits of electric vehicles. Additionally, the South African government has implemented various incentives and subsidies to promote the adoption of electric vehicles, including tax breaks and reduced import duties. These measures have created a favorable environment for electric vehicle manufacturers and consumers in the country.

Underlying macroeconomic factors: The South African government has set ambitious targets to reduce greenhouse gas emissions and transition to a low-carbon economy. The adoption of electric vehicles plays a crucial role in achieving these targets, as transportation is a major contributor to carbon emissions. In order to support the growth of the electric vehicle market, the government has implemented policies and regulations that encourage the production and use of electric vehicles. This includes the introduction of emission standards and the promotion of renewable energy sources. In conclusion, the Electric Vehicles market in South Africa is developing rapidly due to customer preferences for environmentally friendly and cost-effective transportation options, market trends such as the expansion of charging infrastructure and the availability of more affordable electric vehicle models, local special circumstances including the country's solar energy potential and government incentives, and underlying macroeconomic factors such as the need to reduce greenhouse gas emissions. As these factors continue to drive the growth of the electric vehicle market, we can expect to see further expansion and innovation in the industry in South Africa.

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).