This year has brought renewed focus to electric vehicles (EVs). Recent volatility in global energy markets has renewed interest in alternative powertrain technologies. With the whole world driving towards an electric future, what does this journey look like for South Africa?
The latest Naamsa figures show how local sales of battery-electric vehicles (BEVs) in South Africa have grown over 228% year-on-year. That sounds impressive, but it does require more context. BEVs account for less than 1% of our nation’s market.
Growing EV adoption starts with a clear strategy to unite government and industry through a shared purpose. While it is our responsibility to produce the vehicles, government, together with a host of other stakeholders, will need to make sure that the infrastructure is in place to drive demand.
Infrastructure: A chicken-and-egg scenario
The ability to plug in at your local shopping centre, complete your weekly grocery run and return to a fully charged vehicle is the selling point. But that’s just around town. Fast charging infrastructure along highways is a necessity to make cross-country trips a practical reality for your average South African motorist.
South Africa is making progress with the rollout of charging infrastructure, including the recent launch of the CHARGE N3 Roadside in the Free State along the critical N3 highway corridor. It’s a step in the right direction, but this market demands a higher EV adoption rate to make greater strides. South Africans are understandably hesitant to commit to an EV purchase, and at the same time, charging infrastructure providers are hesitant to invest when demand is slow to grow. It’s an unfortunate chicken-and-egg scenario.
More infrastructure directly influences the number of South Africans deciding whether an EV or plug-in hybrid electric vehicle (PHEV) suits their mobility needs. It helps them compare their daily and long distance travel requirements with charging opportunities and, therefore, assess the overall practical feasibility of ownership. With each new charging station, the roadmap to electrification becomes clearer for consumers.
But we are also moving forward as an industry. For instance, the BMW Group is proud to offer the largest portfolio of new energy vehicles (NEVs) in South Africa’s premium segment. This achievement dates to the local launch of the i3 and i8 models in 2013. These investments continue to this day, representing a serious financial commitment, especially considering the capital intensity of infrastructure installations along with the unpredictable nature of modern technology lifecycles.
That roadmap is why BMW Group doesn't back one technology over another. Instead, we offer a range of vehicles locally, choosing each one based on what will sell best and suit the market. We continue to invest in internal combustion engines, plug-in hybrid and battery-electric vehicles, giving customers the freedom to choose the solution that best meets their mobility needs.
Now it’s time for manufacturing to play a role in our quest to drive up EV demand.
Manufacturing: A proactive, reinforcing cycle
Local manufacturing acts as the anchor for building a viable and resilient domestic market. It helps address the critical issue of affordability, the biggest hurdle to EV and PHEV ownership.
South Africa’s automotive manufacturing sector is built to meet export demand and compete globally, with electric-powered vehicles in particularly high demand overseas. By building on industry gains made over the last five decades, South Africa is well positioned to expand local production to produce EVs and PHEVs for export markets.
Case in point, BMW Group Plant Rosslyn is the only plant in our worldwide network producing the BMW X3 plug-in hybrid for global markets.
Ultimately, domestic production creates a positive cycle, where increased investments drive down consumer costs. Rising local demand would then justify further expansion of charging infrastructure and support the growth of South Africa’s service and repair industry. While this point has not yet been reached, the pathway has certainly become clearer.
As of 1 March 2026, manufacturers investing locally in EV or hydrogen-vehicle production assets can claim a 150% tax deduction for qualifying investments in infrastructure and equipment. Also, government plans to add EV battery minerals to its automotive incentive programme, aligning with the South African Automotive Master Plan 2035.
These are all stepping stones on the path to a new energy future. They move us in the right direction, but we must remember that more momentum is needed to drive domestic acceptance of NEVs. Long term policy certainty will be just as important as investment incentives in giving manufacturers the confidence to commit capital and expand local production.
The path to a new energy future
There should be more excitement around electrification and how it benefits South Africans and transforms the way they live, work and move. The launch of new EV and PHEV derivatives from the BMW Group and other brands reflects the market confidence we see.
At BMW Group South Africa, our journey towards electrification began in 2013. Since then, we’ve launched both BEVs and PHEVs across our BMW, MINI and BMW Motorrad brands. In 2020, we launched the MINI Cooper SE, the most affordable BEV available locally at the time. And in 2023, we launched the BMW CE 04, an all-electric scooter that is redefining the urban mobility experience.
We now stand on the brink of the next wave, with the all-new BMW iX3 ushering in a new era of electrified mobility for the BMW Group.
As BMW Group South Africa, we will continue to contribute, collaborate and optimise our market offering. South Africa has the capability, industrial base and expertise to play a meaningful role in the global transition to new energy mobility. Continued collaboration between industry and government will determine how quickly we realise that opportunity. A success story is being written in South Africa. And that story will culminate in a new age of intelligent and sustainable African mobility.
* Peter van Binsbergen is Chief Executive Officer at BMW Group South Africa
**The views expressed do not necessarily reflect the views of the National Media Group.