South Africa taking a shine to electric cars

South African consumers are increasingly hungry for hybrid and electric vehicles.

According to the latest PwC Voice of the Consumer Survey, three out of four respondents indicated an appetite to buy a hybrid or electric vehicle.

Local sales of these vehicles increased by 65% in 2023, and they are expected to rise again by 30% in 2024.

The rising cost of internal combustion engine (ICE) transport and the declining price entry point of electric vehicles (EVs) supported this growth.

This is certainly supporting the increase in EV sales in 2024.

The most affordable full-sized EV in South Africa costs roughly R540,000 – down from the R690,000 seen in 2022-2023.

“Some South African consumers are interested in EVs due to environmental considerations and the contribution these could make to reduce climate change,” said PwC.

“The country has in recent years seen an increase in the frequency and impact of extreme weather events. Nine out of ten survey respondents are worried about climate change, with over a third of them feeling worried on a daily basis.”

“This worry stems partially from the impact climate change could have on South Africans through income (jobs) and wealth (savings) effects via the business world, among other channels.”

That said, PwC admitted that the reported appetite for EV and hybrid ownership is often overstated on surveys when compared to actual purchasing intentions.

“It is easy to say that you would want to own an EV, while the realities of constrained supply, charging challenges (load shedding), range anxiety (the fear that an EV will run out of battery before reaching a charger or destination), and initial purchase cost most often outweigh this interest in favour of
ICE vehicles.”

While EV sales have increased significantly over the past several years, they still only comprise roughly 0.2% of total vehicle sales.

The falling price of EVs and the increasing cost of ICE vehicles should swing the pendulum in the other direction.

As previously noted, South African consumers are increasingly worried about climate change, with over a third worrying about it on a daily basis.

“Some are aware that, in January 2024, the world witnessed the first year-long breach of the 1.5°C warming limit with the average near-surface global temperature surging to more than 1.5°C above pre-industrial levels for a consecutive 365-day period,” said PwC.

With greater concern over climate change and its impact, a growing number of consumers are willing to change their consumption habits and buy products with smaller environmental impacts.

39% of South Africans listed extreme weather conditions in their top three threats/risks for the country in the next 12 months – on par with the response rate with concerns over macroeconomic volatility and health risks.

South Africa has already seen an increase in the frequency and impact of extreme weather events, with extreme rains and flooding the most common.

The Western Cape, for instance, was declared a disaster zone in mid-July amid intense rainstorms, with schools being forced to close for two days in the province.

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