Car shopping patterns are changing all over the world as consumers turn their attention to new energy vehicles (NEVs).
In fact, Goldman Sachs Research predicts that electric vehicles (EVs) will make up about half of new car sales worldwide by 2035. In South Africa, shopping patterns are also changing – with a substantial year-on-year growth in interest in NEVs.
Last year, the global EV and plug-in hybrid vehicle (PHEV) market grew by 55%2. In South Africa, the market grew by a far higher percentage of 431.7%.3. This was coming off a low base (a total of 896 NEVs were sold in South Africa in 2021).
George Mienie, AutoTrader CEO, reveals that advert views on AutoTrader point to a potentially strong NEV market this year. “The first six months of 2023 have seen hybrid advert views grow by 72.6% while EV advert views have grown by 50.4%. Diesel and petrol advert views saw a 12.9 and 16.01% increase respectively. This points to growing interest in NEVs versus vehicles with internal combustion engines, albeit from a much larger base” he reveals.
The increasing number of advert views is being driven by the growing number of NEVs being launched in South Africa.
Recently, for instance, the world’s biggest seller of EVs – BYD or Build Your Dreams – announced the launch of a C-Segment SUV called the ATTO 3. BMW has also announced that its Rosslyn plant will go electric next year with a R4.2 billion investment for the new-generation X3, including a PHEV version. Other newcomers to the South African NEV market include the Volvo EX30, Mercedes-Benz EQE and GWM Ora Cat.
These launches aren’t just driving demand and interest; they’re also resulting in sales. According to the recent Naamsa quarterly report, NEV sales by 14 industry brands increased by 18.8% from 1 401 units in the first quarter of 2022 to 1 665 units in the first quarter of 2023.
It will be interesting to see if the increase in interest translates into an increase in actual sales in the second half of 2023.
