Battery Electric Vehicles - Southern Africa

Southern Africa

Highlights

The market segment for Battery Electric Vehicles market in Southern Africa is expected to generate revenue of US$51.1m in 2024.
This revenue is projected to experience an annual growth rate of 11.71% from 2024 to 2029, resulting in a market volume of US$89.0m by 2029.
In that year, unit sales of Battery Electric Vehicles market are projected to reach 1.44k vehicles.
The volume weighted average price of Battery Electric Vehicles market in 2024 is expected to be US$61.9k.
It is worth noting that, from an international perspective, China is expected to generate the highest revenue in the Battery Electric Vehicles market, with US$211bn in 2024.
Battery Electric Vehicle adoption in Southern Africa is growing steadily, driven by increasing government incentives and a growing awareness of the need for sustainable transportation solutions.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureMethodology

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

Customer preferences: Customers in Southern Africa are increasingly showing a preference for Battery Electric Vehicles (BEVs) due to their environmental benefits and cost-saving potential. As concerns about climate change and air pollution continue to rise, more consumers are seeking sustainable transportation options. Additionally, the lower operating and maintenance costs of BEVs compared to traditional internal combustion engine vehicles make them an attractive choice for cost-conscious consumers.

Trends in the market: One of the key trends in the BEV market in Southern Africa is the increasing availability of charging infrastructure. As more charging stations are installed across the region, the range anxiety associated with BEVs is decreasing, making them a more viable option for consumers. This trend is further supported by government initiatives and incentives aimed at promoting the adoption of electric vehicles. Another trend in the market is the expanding range of BEV models available to consumers. Major automakers are introducing new electric models specifically designed for the Southern African market, taking into consideration factors such as local driving conditions and customer preferences. This increased variety of options is attracting more consumers to consider purchasing BEVs.

Local special circumstances: One of the unique circumstances in Southern Africa that is driving the growth of the BEV market is the region's abundant renewable energy resources. Southern Africa has vast solar and wind energy potential, which can be harnessed to power electric vehicles. This presents an opportunity for the region to transition to a more sustainable and environmentally friendly transportation system. Furthermore, Southern Africa's urban centers are experiencing rapid population growth and increasing congestion, leading to a greater demand for efficient and clean transportation solutions. BEVs offer a solution to these challenges by providing a zero-emission mode of transportation that can help reduce air pollution and alleviate traffic congestion.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the development of the BEV market in Southern Africa. One of the key factors is the decreasing cost of battery technology. As advancements in battery technology continue to drive down prices, the affordability of BEVs is improving, making them more accessible to a wider range of consumers. Government policies and regulations are also playing a significant role in the growth of the BEV market. Many countries in Southern Africa have implemented incentives and subsidies to encourage the adoption of electric vehicles. These policies include tax breaks, import duty reductions, and financial incentives for purchasing BEVs. Such measures are driving up demand for electric vehicles in the region. In conclusion, the Battery Electric Vehicles market in Southern Africa is experiencing growth and development driven by customer preferences for sustainable transportation options, increasing availability of charging infrastructure, expanding range of BEV models, local special circumstances such as abundant renewable energy resources, and underlying macroeconomic factors such as decreasing battery costs and government policies. This trend is expected to continue as more consumers recognize the benefits of BEVs and governments continue to support the transition to electric mobility.

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).