The 2022 edition of Electric Vehicle Buyers Survey was recently released by AutoTrader South Africa and Smarter Mobility Africa in partnership. According to the study results, 64% of respondents said they would buy an electric car over the next five years. Consumers are prepared to pay up to R600,000 ($33,000) on EVs, or 72% of them.
In South Africa, interest in electric vehicles is rising. The market is seeing an increase in the number of EVs. South Africans can currently purchase any of the following models:
e-tron by Audi e-tron GT by Audi RS e-tron GT by Audi BMW iX BMW iX3 BMW i4 M50 Jeep I-Pace EQA Mercedes-Benz EQB Mercedes-Benz EQC Mercedes-Benz EQS by Mercedes-Benz SE MINI Cooper Toyota Taycan XC40 P8 Recharge by Volvo XC40 P6 Recharge by Volvo Only the Mini Cooper SE is less expensive than R1 million ($54,000) among these cars. Mini Cooper prices start at at R770,000. Since the majority of prospective consumers are willing to pay R600,000 or more, none of the EVs that are currently on the market in South Africa are below that price. South Africa has lost out on this chance. To accommodate the majority, dealers and their international OEM partners should seriously consider expanding the selection of EVs that are offered in South Africa.
The fact that EVs in South Africa pay significantly more taxes than ICE equivalents is one factor holding back the sector. Tax rates for ICE imports are 18%, whereas they are 25% for EV imports. The cost of an EV is typically more than 2X that of the typical price of a new ICE vehicle of a similar make and model due to the ad valorem tax on electric vehicles.
Therefore, it should come as no surprise that the primary obstacle to EV adoption in South Africa is regarded as the hefty upfront cost of the vehicles. The high initial cost of purchasing, according to 65.4% of respondents, is the primary worry:
Photo courtesy of AutoTrader SA
The amount of time it took to charge as well as the alleged lack of a charging infrastructure were the other main issues. Though range anxiety was ranked lower on the list—20.9% of respondents indicated it was one of their top worries—37% stated they would prefer an EV with a 500–700 km range between charges. Mercedes-Benz EQS region is a 700 km range. Many EVs that are priced within the range most respondents to the study suggested (R600,000) have substantially smaller batteries and have a shorter range than 500 km.
Additional information from the report includes:
64.7% of respondents said they would be willing to spend more up front for an EV if the running expenses were lower than those of a petrol or diesel car. 7% of respondents indicated they would use an EV as their primary vehicle. Between the ages of 35 and 54, 54% of respondents were located. 50% of respondents were from one province, with 4% of respondents being men (Gauteng)
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