Is it worthwhile owning an electric car in South Africa?

30 October 2024 - 11:17
By Denis Droppa
EVs are on average about a third more expensive than petrol or diesel cars and the main reason they sell at a trickle.
Image: Supplied EVs are on average about a third more expensive than petrol or diesel cars and the main reason they sell at a trickle.

Life was simpler when you had a choice of a diesel or petrol car with an internal combustion engine (ICE).

The recent proliferation of new-energy vehicles (NEVs) — namely battery-electric cars (BEVs), hybrids and plug-in hybrids — has made the decision more complicated. A barrage of new NEVs has been launched in South Africa in the past few years as the global motor industry, driven by legislation in many countries to reduce air pollution, moves to more planet-friendly vehicles with lower or nonexistent C02 emissions. The EU, China and other regions are preparing to ban sales of ICE cars from the middle of the next decade.

It’s all very well to buy an electric vehicle (EV) in Norway or China which have extensive charging infrastructure and the prices are subsidised by their governments, but you may rightfully ask what is the sense of buying a battery-powered car in South Africa given the high prices of EVs coupled with the long time it takes to charge them?

EVs are on average about a third more expensive than petrol or diesel cars and the main reason they sell at a trickle. Last year, local EV sales rose 85.4% from 502 to 931 units as more models were introduced and prices became more affordable, but still accounted for just 0.17% of the 532,098 new vehicles sold.

However, there is light in the pricing tunnel, after President Cyril Ramaphosa last week announced government will have subsidies to accelerate consumer uptake of EVs. He did not provide a timeframe or say what form the subsidies would take, but it is speculated ad valorem duties on EVs might be reduced to make them more affordable.

Earlier, the government announced it would introduce an investment allowance from March 2026 to encourage the production of NEVs in South Africa. It will allow local carmakers to claim 150% of investment spending on electric and hydrogen-powered vehicles in the first year.

The move will help ensure the survival of the country’s seven big vehicle manufacturers that employ 33,000 people and contribute more than 5% to GDP. Nearly two-thirds of their production goes overseas and they need to switch to EV manufacture as a number of countries they export to will ban the sale of ICE vehicles soon. Some brands do not sell enough of their locally built cars in South Africa to justify keeping their factories open.

The Mercedes-Benz EQS is a luxury EV priced at R2.9m.
Image: Supplied The Mercedes-Benz EQS is a luxury EV priced at R2.9m.

Why would I buy an EV?

High fuel prices might make more South Africans consider making the switch from ICE to electric power, but at the moment it is difficult to justify EV ownership from a value for money aspect. Their expensive prices are largely due to the high cost of their batteries and punitive import duties. A petrol or diesel car costs a lot less and it may take several years to make up the price difference in fuel price savings — that is, unless you charge your EV for free, which is possible depending on your circumstances.

EVs are impractical as long-distance vehicles due to their long charging times and they don’t satisfy a green conscience as long as the country's Eskom supply is mostly delivered by dirty coal.

EVs are locally emission-free in that they don’t produce exhaust fumes, though this is offset by the pollution caused by coal-fired power plants. The green conscience motive behind EVs will take time to achieve, especially in South Africa where 80% of electric power is generated by coal. Curbing global warming will require a clean-energy ecosystem with wind farms and solar panels instead of smokestacks.

However, while EVs remain an expensive luxury, improved range and charging times are making them more practical to own. Driving EVs can also be a pleasurable experience due to their silent operation and strong, instant power delivery.

The BYD Dolphin is SA’s cheapest EV at R539,900.
Image: Supplied The BYD Dolphin is SA’s cheapest EV at R539,900.

More affordable battery-powered cars have been launched in recent months including the BYD Dolphin for R539,900, while the Dayun Yuehu will soon be arriving as South Africa's cheapest EV with a starting price of R399,900.

An AutoTrader survey found two-thirds of South Africans would consider buying an EV if it cost less than R500,000. On the premium side the Volvo EX30 range was recently launched with a starting price of R791,900.

Another factor to consider is our intermittent electricity supply. Though South Africa has experienced almost no load-shedding for several months, there is no guarantee this will continue. 

What it costs to run an EV

According to Winstone Jordaan, director of charging network GridCars, 80% of all charging is done at home and the overall average of running an EV is about two-thirds of the price of fuel.

The prices to charge EVs vary considerably depending on the energy source and the public location.

Public DC fast chargers can cost from R5.88/kWh to R7.35/kWh, and slower AC charging costs from 0 to R5.88/kWh. This rate is multiplied by the car’s battery size to work out how much it will cost for a full charge, from 0% to 100%. 

As an example, with its 69kWh battery the Volvo EX30 Core Single Motor will cost R507 to fill from 0-100% on the most expensive DC charger and R320 on an AC charger. With the car’s claimed range of 344km it works out to a cost of R1.47/km (DC) and 93c/km (AC). To get the same range in a petrol-powered car such as the Volvo XC60 would cost R547, equating to R1.59/km.

Diesel vehicles do better. At a DC fast charger the cost of charging an electric BMW X3 is almost the same as filling up a diesel X3.

The overall average of running an EV is about two-thirds of the price of fuel.
Image: Reuters The overall average of running an EV is about two-thirds of the price of fuel.

The cost of charging the vehicle at home varies from about R3 to R3.50kWh depending on the neighbourhood you live in and tariffs increasing as monthly usage exceeds certain thresholds.

As an example, an electric BMW iX3 will cost between R900-R1,000 to charge at home for a distance of 1,600km. At current fuel prices it would cost about R2,000 a month to run a diesel BMW X3 20d over the same distance.

Some shopping centres and car dealers offer free charging to attract customers to use their premises. Also, if you juice up the vehicle at work and your company doesn’t charge you it could cost you nothing to run your EV.

Charging times and range anxiety

Waiting hours to charge an EV when you can top up a petrol or diesel car in a couple of minutes is a key hurdle to EV ownership, but it can be addressed by a change of mindset if you treat the car the same as charging a cellphone, fully charging overnight and topping up in the day if necessary.

With ranges of between 350km and 480km the latest EV models typically do not require a charge every day, depending on driving style and commuting distances.

Public chargers are getting faster and the latest ones can fully juice up an EV in a claimed 15 minutes. There are only a handful of such ultra-fast chargers, but with more than 350 publicly accessible charging stations, South Africa's number of charging points per EV is one of the highest in the world with about six cars per charging station and the network is growing.

To address load-shedding as well as range anxiety for drivers outside urban areas, a company called Zero Carbon Charge is rolling out a national network of ultra-fast EV chargers at 150km intervals on strategic routes. The solar-powered stations will be off-grid and can charge an EV in a claimed 25 minutes.

The case for hybrids

Plug-in hybrid electric vehicles (PHEVs) are a stepping stone to a fully electric future and combine the best of both worlds: a decent electric-only range (some exceeding 100km), backed up by a petrol engine. They can be charged at home or at public chargers but are quicker to juice up due to having smaller batteries than EVs. They are expensive compared with regular ICE cars though, and all PHEVs in South Africa are priced over R1m.

Regular hybrids, which recharge their batteries while driving and don’t need to be plugged in, can achieve better fuel economy than petrol cars but they are generally not more frugal than diesel cars.

Regular hybrids such as the Toyota Prius can achieve better fuel economy than petrol cars but they are generally not more frugal than diesel cars.
Image: Supplied Regular hybrids such as the Toyota Prius can achieve better fuel economy than petrol cars but they are generally not more frugal than diesel cars.