Automotive manufacturers are accelerating their electric vehicle (EV) strategies, as demand for new energy vehicles (NEVs) grows in SA.
As major vehicle manufacturers across the world increasingly set targets to phase out internal combustion engine (ICE) vehicles, South African manufacturers are adapting to the global shift by future-proofing their operations and increasing investments in local EV production capacity.
This has seen an increase in local demand for EVs, encouraged by a combination of factors, including SA being one of the largest vehicle-manufacturing hubs in Sub-Saharan Africa, government introducing incentives for NEV production, NEVs becoming more affordable and the increase in charging infrastructure across SA roads.
Toyota, BMW, Chery and Stellantis tell ITWeb that while EVs are not yet a mainstream market for the average vehicle buyer, the local industry is ripe for future growth, particularly with government’s policy and incentives becoming more favourable for EV ownership and local manufacturing.
Toyota South Africa Motors says it is fully committed to achieving carbon-neutrality by 2050, and its local NEV and e-mobility strategy aligns with this global vision, while remaining responsive to SA’s unique market realities.
Toyota pioneered electrification in SA over two decades ago with the introduction of the Prius − the country’s first mass-produced NEV. Today, Toyota offers a wide range of NEVs in SA, including the Corolla Cross Hybrid, RAV4 Hybrid, Corolla Hatch Hybrid and Corolla Sedan Hybrid.
“Demand for Toyota’s hybrid models has grown significantly in recent years. In 2024, Toyota sold 13 604 hybrid vehicles, more than double the figure recorded in the previous year,” says Refilwe Ramatlhodi-Ndhlovu, manager of corporate communications at Toyota South Africa Motors.
“The Corolla Cross Hybrid alone accounted for 10 109 units, representing 74% of all hybrid sales in South Africa. This momentum has continued into 2025, with Toyota’s hybrid sales in the first quarter growing 14.8% year-on-year, reflecting increasing consumer confidence and interest in our electrified mobility.”
According to Ramatlhodi-Ndhlovu, rising fuel prices over the past seven years have encouraged motorists to consider more efficient and cost-effective alternatives.
“The local production of the Corolla Cross Hybrid has made hybrid technology more affordable and accessible to South African buyers, and growing environmental awareness has inspired consumers to seek more sustainable options,” she adds.
Looking ahead, Toyota will begin introducing battery electric vehicles (BEVs) from 2026, with at least three fully electric models planned for the South African market in the near future, Ramatlhodi-Ndhlovu notes.
Chinese automaker Chery says it has seen a healthy appetite for its NEVs in SA.
“Demand has been positive when considering general take-up of NEV models in South Africa in recent years,” says a Chery spokesperson.
“Looking at the month-on-month sales performance between August and September 2025, we have seen the Cross hybrid electric vehicle (HEV) gain a 37.70% increase; the TIGGO 7 plug-in hybrid electric vehicle (PHEV) CSH has had an 18% increase; the TIGGO 8 PHEV CSH has had a 15.15% increase in sales, while sales for the TIGGO 9 PHEV CSH have gone up by 36.36% month-to-month.”
Factors that have contributed to Chery seeing increasing buyer demand for its NEVs are due to HEVs and PHEVs being sold at lower price points than full EVs, making them more attractive to consumers from a value perspective, the spokesperson adds.
HEVs are also not reliant on charging infrastructure, making them a safer option in an environment where load-shedding concerns exist.
“Chery has structured its product portfolio to address different market segments and brand positioning. This allows us to tailor the technology, marketing approach and cost structures to different niches and reduce the risk of ‘one size fits all’. Chery is not fully all-in on pure BEVs; we emphasise hybrid / plug-in hybrid / extended range systems, especially in markets where charging infrastructure is lagging,” the spokesperson continues.
Shifting gears to local production
The South African government has published a white paper on EVs, which signals a strategic intention to shift the industry. From March 2026, manufacturers investing in EV or hydrogen-vehicle production assets can claim a 150% tax deduction for qualifying investments in buildings, plants and machines.
SA has earmarked R1 billion to scale up local EV production by 2035. There are also incentives focused on local content and components for EV batteries, and incentives planned for consumers who purchase EVs.
With policy incentives in place, industry players are ramping up efforts to shift their production to manufacturing locally.
BMW, which has been producing NEVs locally for several years, has made an investment of R4.2 billion in the electrification of its Rosslyn (Pretoria) facility, and in the training of its workforce and suppliers.
BMW first introduced its fully-electric sub-brand (BMW i) locally in March 2015.
The automotive firm’s fully-electric offerings in SA include the MINI (MINI Cooper SE, MINI Aceman SE and MINI Countryman SE); BMW (BMW i4, BMW i5, BMW i7, BMW iX1 and BMW iX); and BMW Motorrad’s urban mobility offerings in the BMW CE 02 and BMW CE 04.
It also offers several plug-in models.
Hailey Philander, manager: group automotive communications at BMW Group South Africa, explains: “Currently, our year-on-year data indicates a slight decline for electrified BMW models by 6.7%, while MINI has shown a 77.8% increase in the sale of its electrified models.
“Overall demand for battery-electric vehicles (BEV or fully-electric vehicles) is in decline, while the broader PHEV segment has grown by 241%, driven by broader choice across traditional and premium brands.”
BMW has set a target to have at least 50% of its global vehicle deliveries to be fully electric by 2030. The company expects to launch its last new ICE model as early as 2026, and aims for an all-electric MINI range by the early 2030s.
“We are proud to offer at least one electrified derivative in each segment, and we are excited to introduce the new BMW iX3 locally in the third quarter of 2026. BMW Group South Africa has been producing the fourth generation of the BMW X3 in our Rosslyn plant, outside Pretoria, since October 2024. Additionally, the BMW X3 30e xDrive PHEV derivative is produced exclusively at BMW Group Plant Rosslyn for global markets,” notes Philander.
Stellantis, which owns a diverse portfolio of automotive brands, including Peugeot, Citroën, Fiat, Jeep, Opel, Alfa Romeo and Leapmotor, tells ITWeb it is committed to delivering sustainable mobility solutions to South African customers.
Last week, the company introduced its Leapmotor C10 range-extended electric vehicle (REEV) to the local market and it is preparing to launch its first BEV in SA, with the local launch of the Alfa Romeo Junior Elettrica.
As part of Stellantis’s global strategic plan, which aims for carbon net-zero, Stellantis South Africa says it is progressively rolling out electrified mobility solutions aligned with local market realities.
“Our approach is pragmatic and opportunity-driven. We are introducing new energy vehicles − including mild hybrid electric vehicles, PHEVs, BEVs and now REEV − in segments where adoption is viable,” notes Janus Janse van Rensburg, head of Leapmotor, Alfa Romeo and Jeep South Africa.
“South Africa is a strategic market for Stellantis, and our electrification roadmap here reflects a balance between global ambition and local relevance, supporting the country’s Just Energy Transition, while expanding access to cleaner, smarter mobility. What we have noticed though, in the local market, is NEV sales have increased three times year-on-year, although coming off a very low base with the major growth in hybrid sales. More OEMs are participating in these segments, which are spurring growth.”
Share