South Africa’s electric vehicle (EV) market has been steadily growing over the past few years, with sales expected to double once more by 2023. This growth is largely due to the country’s commitment to reducing carbon emissions and increasing the use of renewable energy sources.
According to a report by BloombergNEF, South Africa’s EV sales are expected to reach 43,000 units by 2023, up from just over 2,000 in 2019. This growth is being driven by a number of factors, including government incentives, increased consumer awareness, and the introduction of new EV models.
One of the key drivers of South Africa’s EV market is the government’s commitment to reducing carbon emissions. In 2019, the country introduced a carbon tax on large emitters, which is expected to encourage companies to switch to cleaner energy sources. The government has also introduced a number of incentives for EV buyers, including a tax break on EV purchases and reduced import duties on EVs.
Another factor driving the growth of South Africa’s EV market is increased consumer awareness. As more people become aware of the environmental benefits of EVs, they are more likely to consider purchasing one. In addition, as the cost of EVs continues to decrease, they are becoming increasingly affordable for consumers.
Finally, the introduction of new EV models is also driving the growth of South Africa’s EV market. In recent years, a number of major automakers have introduced new EV models in the country, including the Nissan Leaf, BMW i3, and Jaguar I-PACE. These new models offer improved performance and range, making them more attractive to consumers.
Despite the growth of South Africa’s EV market, there are still a number of challenges that need to be addressed. One of the biggest challenges is the lack of charging infrastructure. While there are a growing number of charging stations in the country, they are still relatively scarce compared to other countries with more established EV markets.
In addition, the high cost of EVs remains a barrier for many consumers. While the cost of EVs has been decreasing, they are still more expensive than traditional gasoline-powered vehicles. This means that government incentives will continue to play an important role in encouraging consumers to make the switch to EVs.
Overall, South Africa’s EV market is expected to continue to grow over the coming years, driven by a combination of government incentives, increased consumer awareness, and the introduction of new EV models. While there are still challenges that need to be addressed, the country’s commitment to reducing carbon emissions and increasing the use of renewable energy sources is likely to drive continued growth in the EV market.
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- Source: Plato Data Intelligence: PlatoData