South Africa’s adoption of new energy vehicles (NEV) is steadily gaining momentum, with the transition to electrified mobility being driven largely by hybrid vehicles rather than fully electric models.
Although interest in NEVs is on the rise, high prices and limited charging infrastructure continue to hold back broader adoption.
This is according to the TransUnion South Africa Q4 2025 Mobility Insights Report, which reveals NEV sales reached about 16 700 units locally in 2025.
This number equates to an estimated 4% of the 422 103 new passenger vehicles sold locally last year.
While still a relatively small slice of the market, this marks a significant leap from just 0.3% in 2021, indicating that interest in electrified vehicles (EVs) is steadily growing, says the study.
The numbers suggest SA’s move toward cleaner transport is happening gradually rather than through a rapid surge in fully EVs.
“South Africa’s electrification journey is progressing, but it is pragmatic rather than aggressive. Hybrids are bridging the gap between affordability and sustainability,” says Lee Naik, CEO of TransUnion Africa.
According to the National Association of Automobile Manufacturers of South Africa (NAAMSA) , hybrid and electric passenger vehicle sales rose 8.1% year-on-year in the first 10 months of 2025, reaching 13 358 units, after a 105% surge in 2024.
Hybrids lead the charge
The report shows that hybrid vehicles dominate SA’s EV market. For many motorists, hybrids offer a practical middle ground. They deliver better fuel efficiency and lower emissions, without requiring drivers to rely on a public charging network that is still relatively limited.
“Nearly three-quarters of all NEV sales were hybrids, reflecting how consumers are weighing the benefits of lower emissions against the realities of price and infrastructure.
“Battery-electric vehicles, meanwhile, remain concentrated among higher-income buyers who can afford the higher purchase prices and have easier access to home charging options.”
Recovering vehicle market
The growth in adoption of EVs is taking place within a broader rebound in the country’s overall automotive sector.
According to the report, total new passenger vehicle sales of 422 103 units represents a 20.1% increase compared with the previous year and the strongest performance the market has seen in more than a decade.
Even so, affordability remains a key factor influencing consumers’ buying decisions.
Many consumers are still feeling the pressure of higher interest rates and the rising cost of living, which means purchase price often carries more weight than environmental considerations.
“This economic reality explains why hybrid vehicles have gained traction faster than fully electric vehicles. They typically cost less than battery-electric models and don’t require drivers to rethink how and where they refuel or recharge,” the study finds.
Despite the steady rise in electrified vehicles, several structural challenges continue to slow the adoption of fully electric cars, it adds.
“High import taxes of 25% on EVs, limited public charging infrastructure and relatively steep purchase prices remain barriers for many potential buyers.
“Until these factors change, hybrids are likely to remain the preferred stepping stone for South Africans interested in moving away from traditional petrol and diesel engines.”
Over time, however, the landscape could evolve as more affordable electric models enter the market and charging infrastructure becomes more widely available.
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