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Drivers in South Africa can save thousands of rand annually by switching from gasoline or diesel engines to fully electric vehicles. However, the adoption of electric vehicles is hindered by high purchase costs, uneven access to charging stations, and concerns about energy supply stability.

Electric vehicle sales are showing growth, and new charging stations are being developed to reduce dependence on Eskom. Nevertheless, the financial benefit for drivers will depend on the charging location, distance traveled, and the price of the vehicles themselves.

According to data from the Automotive Business Council (Naamsa), 18,945 new energy vehicles were sold in the first eight months of 2026, exceeding the figure of 16,703 recorded for the entire year of 2025. Most of these, however, were not fully electric.

Conventional hybrids, combining a gasoline engine and an electric motor without the need for external charging, accounted for 49.6% of sales. Plug-in hybrids captured 36.5% of the market, while battery electric vehicles running exclusively on electricity made up 13.8%.

By August, 2,622 fully electric cars were sold, compared to 1,088 units in the previous full year. Over seven months leading up to July, plug-in hybrid sales increased by 432%, reaching 5,851 units from 1,100 in the same period in 2025. Sales of fully electric cars grew by 268%, increasing from 641 to 2,360.

The Council noted that the transition from gasoline and diesel will happen gradually, with the pace determined by factors such as availability, model choice, electricity cost, and charging infrastructure.

Norbert Stahlkamp, Head of Electric Mobility at Black Tower (a joint venture between Red Rocket and RMB), stated that his calculations show that drivers covering 10,000–12,000 km annually can save between 13,000 and 17,000 rand on fuel compared to traditional vehicles. Stahlkamp emphasized: 'The data is clear: charging an electric vehicle is significantly cheaper than fueling a car with gasoline or diesel.'

Black Tower also cited estimates from GAC Group, according to which drivers traveling 15,000–20,000 km can save between 25,000 and 30,000 rand per year. These figures depend on mileage and charging prices and do not account for all vehicle ownership costs.

The CEO of the Automobile Association, Bobby Ramagvede, believes that electric vehicles are becoming a practical option for some drivers, but the possibility of home charging may determine whether the claimed savings materialize. He asked: 'What is the consumer problem: where do I charge this car if I live in an apartment?'

Drivers without dedicated parking or home charging devices may have to use more expensive public fast-charging stations. The Council urged buyers to consider not only fuel savings but also costs for insurance, maintenance, financing, and electricity.

Black Tower reported industry estimates indicating that there are approximately 445 charging points and 650 public charging stations in the country. Stahlkamp noted that their geographical distribution remains a challenge for long-distance travel.

Joubert Roux, co-founder and chairman of CHARGE, stated that satisfying the growing demand for electric charging will require significant investment in South Africa's energy system, as local grids are vulnerable to peak load demands. Roux said: 'We do not believe the grid is stable or reliable enough to meet the growing demand for electric vehicle charging without significant investment.'

CHARGE hubs, located at the intersection of Reitz in Free State and at the intersection of Colenso-Winterton in KwaZulu-Natal along the N3 highway, as well as in Wolmaransstad on the N12, utilize on-site solar energy and battery storage instead of power from Eskom or municipalities. Roux added: 'The sun alone is not enough for continuous charging: output power depends on the weather and stops after sunset.'

He stressed that adequate energy storage, carefully calculated systems, and backup plans are necessary. Broader adoption will also require additional generation sources, grid modernization, and smart charging demand management systems.

The CEO of Trade & Investment KwaZulu-Natal, Sihle Ngakhamu, noted that the Toyota Prospecton factory and local provincial component suppliers position KwaZulu-Natal to benefit from electric vehicle investments. Ngakhamu stated: 'The shift to new energy vehicles is one of the most significant investment opportunities for KwaZulu-Natal.'

However, he clarified that the most advanced investment activity currently focuses on charging infrastructure and the renewable energy that supports it. He cited locally produced Toyota hybrids as evidence of manufacturing capabilities, pointing to potential expansion in batteries, electric powertrains, and charging equipment.

Ngakhamu reported that CHARGE is implementing a deployment plan linked to a promised investment of 9.4 billion rand in KwaZulu-Natal, including one charging station on the N3 in the province, with plans for additional facilities for passenger cars and electric trucks. Roux added that long-haul carriers also need predictable charging points and sufficient power to maintain cargo movement, especially along the heavily trafficked Durban-Gauteng corridor.

As of March 2026, a tax deduction of 150% came into effect for qualified investments in the production of electric and hydrogen vehicles. Ngakhamu noted that this incentive 'significantly improves the economics of investing in local production,' especially for a province with established component suppliers and export infrastructure.

According to Naamsa, the South African automotive industry provided 113,000 jobs in manufacturing, and vehicle and component exports reached 291 billion rand in 2025. The Council also estimated that the entire automotive sector supports approximately 498,000 jobs in the formal sector, including indirect multiplier effects.