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Africa|Infrastructure|Infrastructure
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africa|infrastructure|infrastructure

Volvo Car SA expects big jump in electric vehicle sales this year

14th July 2023

By: Irma Venter

Creamer Media Senior Deputy Editor

     

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It is impossible to know what the real demand is for Volvo Car South Africa’s (SA’s) fully electric vehicles (EVs), as persistent supply challenges have skewed the sales numbers, says Volvo Car SA MD Greg Maruszewski.

“We don’t really know what the true demand is for our EVs in South Africa,” he notes. “We sell our allotted vehicles as soon as we receive them.”

However, the good news is that supply from China and Sweden has started to ease since May, says Maruszewski, both in terms of EVs and plug-in hybrid electric vehicles (PHEVs).

Also, the numbers are trending upwards, with Volvo Car SA selling 50 EVs in the whole of 2022, but 50 in the first quarter of this year alone.

Volvo Car SA currently has two EV models on the market – the XC40 (two derivatives) and the all-new C40, launched at the end of May.

The next model to be added to the EV line-up is “truly something to get excited about”, says Maruszewski.

The small EX30 – the same size as a B-segment car – is set to make its debut towards the beginning of next year.

The EX30 will take the Swedish carmaker into an EV segment in which it has not yet played, both in terms of price and size.

Maruszewski believes the competitive starting price of R775 900 will stand the newcomer in good stead as one of the most affordable EVs on the market.

“It will be very competitively priced, and it is set to change people’s perception about the Volvo brand,” he notes.

He adds, however, that the rand’s recent nosedive makes it increasingly difficult to import EVs into South Africa at competitive prices.

As Volvo Car SA expands its horizons, it also aims to retain its loyal clientele, with the new EX90 flagship EV set to launch in South Africa in the middle of next year.

Maruszewski expects Volvo Car SA to sell about 300 EVs this year, out of a total of roughly 2 000 vehicles – a 15% share.

PHEVs will have an expected sales share of between 10% and 12%.

These numbers are despite intensified loadshedding this year, which is often cited as the chief reason not to buy an EV.

Maruszewski says the people who complain most about EVs in South Africa are typically not EV owners.

“People who own these vehicles know that you can charge your car through the night without any challenges.

South Africans also know not to charge anything when empty, but to rather charge when you can.”

The range on EVs has also improved to such an extent that it has become unnecessary to seek out public charging infrastructure when using the vehicle on a day-to-day basis.

“Besides, charging infrastructure and charging times continue to improve tremendously,” says Maruszewski.

“EVs continue to be an excellent choice as city cars or a household’s second car. The cost per kilometre is lower and the performance better than that of an internal combustion engine.”

Maruszewski says the reasons for premium car buyers “not to go electric” will become fewer and fewer “in a few years’ time”.

“Europe, China and the US will all make a strong move to electric in this decade. Charging infrastructure will expand, range will improve and EVs will become cheaper.”

Maruszewski believes that 70% of Volvo Car SA’s sales will be EVs by 2027, with third-generation batteries offering a range of up to 800 km.

Edited by Creamer Media Reporter

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