Electric Vehicles - Southern Africa

The Electric Vehicles market in Southern Africa is poised for significant growth, with projected revenue reaching US$93.3m in 2024.
This market is expected to demonstrate a robust annual growth rate (CAGR 2024-2029) of 8.70%, resulting in a projected market volume of US$141.6m by 2029.
By 2029, unit sales of Electric Vehicles market are anticipated to reach 1.78k vehicles.
In 2024, the volume weighted average price of Electric Vehicles market in Southern Africa is expected to be US$85.3k.
When looking at the international landscape, it is clear that China will generate the highest revenue, amounting to US$376bn in 2024.
Southern Africa is experiencing a surge in demand for electric vehicles as consumers become more conscious of the environmental impact of traditional cars.

CO2 emissions exert a profound influence on climate and the environment, fueling the greenhouse effect and contributing significantly to global climate change. Nearly one-fourth of these emissions worldwide can be attributed to the transportation sector. Electric vehicles (EVs) emerge as a promising solution, potentially acting as a carbon-neutral alternative when powered by renewable energy sources. This underscores their pivotal role in mitigating the impact of traditional combustion engine vehicles on the environment.

The Electric Vehicles market includes information about electric vehicles in countries where, according to our sources, a public electric vehicle charging infrastructure is already available. In this context, “public” means that people have unrestricted access to the charging infrastructure. A vehicle can be defined as electric if it is self-contained with a battery or classified as a plug-in hybrid. All key figures shown represent the sales of new cars, and their basic configuration in the respective year. The figures do not include the sale of used vehicles nor adapted equipment for the new cars sold. The prices and revenues shown are accordingly based on the basic models.

The Electric Vehicle market is divided into distinct two distinct markets, namely Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This categorization allows for a nuanced understanding of the market dynamics, considering the specific attributes and market penetration of each electric vehicle type. The emphasis on new car sales and their foundational configurations ensures clarity, while the exclusion of used vehicles and customizations maintains focus on the evolving landscape of electric vehicles.

Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Road electric vehicles
Passenger Cars

Electric vehicles that are not self-contained and cannot be classified as BEVs or PHEVs
Rail electric vehicles
Surface and underwater vessels
Electric aircraft or spacecraft
Motorcycles, scooters, mopeds, buses, vans, and trucks

The Electric Vehicles market in Southern Africa is experiencing significant growth and development. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors are all contributing to this positive trend.

Customer preferences in Southern Africa are shifting towards more sustainable and environmentally friendly transportation options. With increasing awareness of the negative impacts of traditional fuel-powered vehicles on the environment, consumers are seeking alternatives that reduce carbon emissions. Electric vehicles offer a cleaner and greener mode of transportation, making them an attractive choice for environmentally conscious consumers in the region.

Trends in the Electric Vehicles market in Southern Africa are also driving its development. The region is witnessing a rise in government initiatives and incentives to promote the adoption of electric vehicles. These include tax incentives, subsidies, and the development of charging infrastructure.

Such measures are encouraging consumers to switch to electric vehicles, as they make them more affordable and convenient to use. Furthermore, advancements in technology are making electric vehicles more appealing to consumers in Southern Africa. The range and performance of electric vehicles have improved significantly in recent years, addressing concerns about limited driving distances and charging times.

This has increased consumer confidence in electric vehicles and has contributed to their growing popularity in the region. Local special circumstances in Southern Africa are also playing a role in the development of the Electric Vehicles market. The region has abundant renewable energy resources, such as solar and wind, which can be harnessed to power electric vehicles.

This presents an opportunity to create a sustainable and integrated energy ecosystem, where electric vehicles can be charged using clean and renewable energy sources. Additionally, Southern Africa has a growing middle class with increasing purchasing power, making electric vehicles more accessible to a larger consumer base. Underlying macroeconomic factors are also driving the growth of the Electric Vehicles market in Southern Africa.

The region is experiencing economic growth, which is leading to an increase in disposable income levels. As a result, consumers have more purchasing power and are able to afford electric vehicles. Furthermore, the rising cost of fuel and concerns about energy security are also driving the demand for electric vehicles, as they offer a more cost-effective and reliable alternative.

In conclusion, the Electric Vehicles market in Southern Africa is developing rapidly due to changing customer preferences, favorable market trends, local special circumstances, and underlying macroeconomic factors. As consumers become more environmentally conscious and governments implement initiatives to promote electric vehicles, the market is expected to continue its growth trajectory in the coming years.

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).

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For the first time in the past decade, lithium-ion battery pack costs increased in 2022 due to the raw material and battery component soaring price inflation. However, this increase in production cost has not slowed down the global electric vehicle (EV)market. Electric vehicle sales have increased tremendously over the past decade.