By: Tebogo Maphothoma - Executive: Operations and Enablement Absa Vehicle Asset Finance and Zinzile Gcaleka, Executive: Strategy and Customer, Absa Insurance

While still a relatively nascent sector, South Africa’s New Energy Vehicles (NEV) market is growing steadily, with significant increases in vehicle sales recorded in recent years. Plug-in hybrids (PHEVs) have shown substantial growth in the country, according to the latest market insights from Lightstone, with 1,784 units sold in 2025 year-to-date compared to 477 in 2024, marking a 274% increase. Traditional hybrid models, however, still lead local year-to-date sales, with 9,366 vehicles sold.

Against this backdrop, two Absa executives embarked on an electric three-day adventure, recently journeying over 4,000 kilometres from Johannesburg to Gqeberha to assess the country’s readiness to embrace NEVs. 

Zinzile Gcaleka, Executive: Strategy and Customer at Absa Insurance recounted, “An unexpected factor was the additional travel time required to accommodate charging stops which needs to be considered when planning trips especially for families with young children.”

“The dual experience of the electric vehicle’s quiet engine and intuitive tech suite were impressive and reinforced the innovation we are seeing in the NEV market. However, the discovery of a broader network of garages equipped with charging facilities, which I had previously perceived as limited, signals an untapped opportunity to enhance customer confidence in EV adoption. Additionally, the lack of consistent signage at some locations represents a visibility gap, making them easy to overlook.” 

The road trip served as a real-world test-run, highlighting infrastructure gaps, consumer awareness challenges, and the potential for ecosystem challenges. The NEV expedition featured a convoy of 20 vehicles from nine participating original equipment manufacturers (OEMs), comprising of Battery Electric Vehicles (BEVs), PHEVs, and traditional Hybrid Electronic Vehicles (HEVs).

Tebogo Maphothoma, Executive: Operations and Enablement at Absa Vehicle Asset Finance added: “For many participants, including myself, this was a first encounter with new energy vehicles. That experience revealed a broader insight into the awareness gap among consumers.” 

“Simple yet critical aspects, such as the use of charging cards or mobile apps that map and monitor charging stations in real time, are still unfamiliar to many. Bridging this gap will be essential in accelerating South Africa’s transition toward sustainable mobility.”

As momentum builds, it underscores how growing consumer interest is shifting the automotive landscape. Yet, despite the market’s burgeoning offerings, several barriers still challenge its wide-scale adoption. Chief among these are the high upfront costs – including taxes, import duties and shipping – which make NEVs less affordable to consumers.

Concerns around the country’s power grid capacity to support the additional load that will come from charging, and the limited accessibility of charging stations also remain.

According to PlugShare, a global charging station finder app, there are over 300 publicly available charging stations in the country. However, with a vast road network spanning 750,000 km – the tenth longest network in the world – the current capacity remains insufficient and limited to largely urban areas.

Maphothoma emphasised that awareness of NEVs needed to go beyond the power source but be rooted in supporting the country’s energy resilience and enabling the NEV value chain. 

“Awareness must go beyond the practicalities; it must also encompass the total cost of ownership, performance, and environmental impact. Just as consumers were once educated about internal combustion engine (ICE) vehicles, similar efforts are now required to demystify and drive adoption of NEVs.”

Beyond that, access and affordability remain pivotal to the NEV conversation. Rising vehicle prices and shifting ownership preferences are prompting both manufacturers and financiers to rethink traditional vehicle financing.

South Africa’s NEV journey may be slow, but it is steady. And the convergence of technological innovation, financial evolution and societal awareness will define how quickly and inclusively this transformation unfolds.