Whether people are looking to save money on petrol or reduce their greenhouse gas emissions, motorists are increasingly reviewing their options when it comes to electric and hybrid powered vehicles.
“South Africa is seeing an uptick in new-energy vehicles (NEV) like hybrids or electric vehicles – incentivised by the idea of saying goodbye to petrol stations for good,” says Keletso Mpisane, head of Blink by MiWay.
As countries around the world incentivise electric vehicles through tax breaks and legislation, these cars are becoming more accessible. For instance, over one in three new cars registered in China in 2023 were electric, and in Europe this figure stands at one in five cars according to the international energy agency.
There are more than 15 manufacturers in South Africa, including the likes of BMW, Volvo and new players like BYD and Haval, that offer NEVs, with more expected to join.
According to the automotive council, 7 693 more of these cars were sold in 2023 compared to the year before, a year-on-year increase of 65%.
“While these accounted for less than 2% of total new car sales last year, these figures show that consumer interest is on the rise,” says Mpisane. She adds that South Africa’s motoring sector is in the early stages of adopting electric vehicles, with new policies expected to bring prices for NEVs down as the market adapts.
Consumers considering an EV or NEV purchase, should carefully consider what suits their pocket and also what the operating costs will be, and importantly, what impact these cars will have on their insurance plans.
Full electric vehicles
Electric vehicles (EVs) or battery electric vehicles (BEVs) are propelled by at least one electric motor that rotates the wheels. This smog-free option sits at the opposite end of the spectrum to the internal combustion engines we commonly rely on today.
“In addition to being completely independent of petrol, BEVs have the added benefit of fewer moving parts compared to fuel-based engines. This lowers servicing and maintenance costs,” says Mpisane.
Your regular driving routes and habits should be the main indicator of how suitable an EV is to your lifestyle. If you drive long distances to get to work and frequently take out of town trips, EVs might not be the right fit. Here is why.
More affordable options like the BMW i3 or the BYD Dolphin are smaller, meaning they have a limited maximum driving distance and can only travel shorter distances with a single charge. EV drivers generally are commuting in urban areas and use shorter driving distance due to the charge limit of these vehicles. They shy away from longer trips because of concerns that they could run out of charge on long trips. This is commonly called range anxiety.
“Having an insurer that has roadside assistance for EVs should mitigate worries about range anxiety. Your cover should provide for emergencies like towing the car to the nearest charging station,” advises Mpisane.
Fortunately, as more EV’s are acquired, more charging stations are being added to malls and petrol stations. (you can Find a map to the nearest charging stop here).
The higher end of the EV market, and EV Hybrids, presents cars that get you more distance from a single charge; however, these vehicles will likely attract higher premiums thanks to their increased value.
Hybrid cars
If worrying about range is not a concern you want to have, you might want to consider a hybrid vehicle.
In this setup an internal combustion engine is paired with one or more electric motors to power the vehicle and in the case of the plug-in hybrid vehicles (PHEV), the batteries that power the motor must be charged like an EV.
Traditional hybrids have both engine and electric motor, but they commonly use a method called regenerative braking to charge the battery. These are the most common NEVs in South Africa – with over 3 000 models sold in early 2024. PHEVs are less popular, with fewer than 140 being sold in the country in the first quarter of 2024 and only 333 units sold in 2023.
Unlike traditional hybrids, PHEVs can go further and faster on electric power alone. Normal hybrids are best suited for shorter trips in traffic because they can rely on the motor in those scenarios and the combustion engine takes over under heavy acceleration and higher speeds.
Mpisane notes that, “traditional hybrids will help city commuters reduce fuel costs and be able to take a road trip when desired. PHEVs on the other hand are better suited for people living in houses where they can access a charging station. If you want to get a full EV one day, this option prepares you for it.”
Hybrids are extremely fuel efficient and they offer peace of mind for long trips because you can add fuel to the tank at intevals without delays. They are also ideal for those who seriously want to cut down on their carbon emissions.
However, the dual systems they operate on can be complex, bringing on higher maintenance costs.
Insuring a hybrid car may be a bit more affordable than getting cover for EVs as the lack of EVs in South Africa makes parts more expensive. Hybrid cover will still cost more than insurance for a internal combustion engine cars but hybrid owners can expect to save money in other areas like brake replacements thanks to regenerative braking.
There are also plans by Toyota and BMW to launch Hydrogen Fuel-Cell vehicles by the end of 2028. These will be driven by Hydrogen and are also environmentally friendly with longer travelling distances possible but will also be likely to have higher price tags until full scale of production is achieved.
The Blink by MiWay head concludes with a reminder that, “as NEV technology gets better, and carbon levies impact the market, these green alternatives will pay off for owners and the environment in the long run.”
With high fuel costs not likely to reverse to any great degree in South Africa, the appeal of alternative cleaner energy vehicles is likely to continue as a trend and potential buyers need to make sure they are making informed decisions about all aspects of ownership.