Fast-growing global electric vehicle (EV) availability will not impact Motus in the short term but is rather “something to watch in the medium term”, says Motus Retail South Africa CEO Corne Venter.
Motus is a JSE-listed vehicle importer and retailer.
“From an EV perspective, there is very low adoption in South Africa, compared [with] Europe,” says Venter.
He believes that a lack of public charging infrastructure, partnered with South Africa’s geography and demographics, which often requires long-distance travel, will see consumers opt for traditional petrol and diesel vehicles for some time to come.
While up to 20 new EVs will enter the local market up to the end of 2023, the vehicles’ prices are unlikely to attract consumers, although fuel prices are at record highs, says Venter.
The vehicle category that is most financed in South Africa is sub-R500 000, at 81% of all transactions.
The cheapest EV available in the country, however, is the electric Mini, which is priced at R650 000-plus, followed by the BMW i3.
“Most EVs in South Africa are in the R2-million to R3-million range, making [them] largely unaffordable for the bulk of consumers in South Africa,” says Venter.
A 25% import tax on EVs – which is not applicable to internal combustion engine vehicles – does not help matters, he adds.
“Government will need to make a significant policy change if it wants mainstream EV adoption.”
Venter also believes that South African consumers will adopt hybrid vehicles first before moving to full battery EVs.
“We have a host of EVs we can bring in tomorrow. The problem with EVs purely relates to affordability,” notes Hyundai Automotive South Africa CEO Niall Lynch.
“There is no doubt in my mind that EVs are the future, and that the price of EVs will come down. [Government] can move now and make EVs more affordable by lowering taxes, but I can’t see that happening.”
However, Kia South Africa sales and marketing director Stephen Crosse says the Korean importer is looking at introducing its first EV on the local market in the form of the Niro.
“Our intention is to introduce the South African market to the EV options available from Kia.
“While we ideally want to do this by December, we are currently completing a feasibility study on the Niro Plus, the outcome of which will determine both the viability and potential date of introduction.”
Kia and Hyundai are both Motus group companies.