Kia's ICE bakkie launch in SA casts doubt on EV Transition

From the newsletter

Elsewhere in the world, Kia is launching electric pickups (bakkies), but here in Africa, it's targeting the launch of an ICE bakkie in the first half of 2025. You might wonder why. And they are not the only ones. In South Africa, several auto players, including Chinese EV makers Chery and GWM, and even local players like Ford and Toyota plan to launch ICE bakkies.

• Kia is Korea's oldest and second-largest automobile manufacturer, after its parent company, Hyundai Motor Company.

• Kia plans to launch a 2.5-litre petrol diesel engine equipped with an eight-speed automatic transmission, and a 2.2-litre diesel engine with a choice of an eight-speed automatic or six-speed manual transmission.

More details

• South Africa's bakkie market is one of the largest in Africa. In 2023, approximately 151,499 bakkies were sold, an increase of about 11.6% from the previous year, demonstrating continued strong demand.

• Bakkies are a common and preferred option for many South Africans because of their versatility. They can be used for work, leisure, and family transport, making them suitable for diverse needs and lifestyles.

• South Africa has varied terrain, and bakkies are known for their ability to handle tough conditions, both on and off-road.

• Toyota, Ford, and Isuzu are major players in the South African bakkie market, with popular models like the Hilux, Ranger, and D-Max.

• In March 2024, Nissan stopped production of its NP200 series—one of the top 5 selling bakkies in South Africa—at the Nissan Rosslyn facility with no immediate replacement planned.

• This segment of half-tonne bakkies is currently underserved, presenting an opportunity for manufacturers to capitalise on this demand and Kia may have recognised this opportunity.

• While EVs and plug-in hybrids are also coming to SA, the market remains quite small.

Our take

• Africa's terrain presents unique challenges, and ICE pickups have long dominated the market. Their versatility makes them ideal for consumers, especially in rural areas, who need vehicles for diverse purposes like family outings, work, and transporting goods. This deep-rooted preference for multi-purpose vehicles won't change quickly.

• While South Africa is experiencing a shift in the automotive space, ICE vehicles will not disappear overnight. Affordability remains a key factor driving their demand, especially when compared to EVs. Furthermore, the lack of widespread charging infrastructure in South Africa poses a significant obstacle to mass EV adoption.

• Global automakers recognise these realities and anticipate a gradual transition in the market.