Volvo EVs compete well with Chinese models in SA

From the newsletter

The sales data released last month by Naamsa, South Africa's automotive association, shows that Volvo SA is dominating the EV market. It sold 467 electric vehicles in SA between January and September 2024, securing its position as the top EV seller in the country and outselling competitors despite a smaller model range.

• The company has three EV models available in South Africa and is planning to launch the EX90 large SUV.

• Its Volvo EX30 is the best-selling model with 348 units sold, followed by the XC40 with 96 units and the C40 with 23 units.

More details

• Several companies are offering electric vehicles in the same category as the Volvo EX30, including the Dayun S5, GWM Ora, and BYD Dolphin. 

• Prices differ based on quality and size. The Dayun S5 is the cheapest model at $21,268, followed by the BYD Dolphin at $28,708, the GWM Ora at $36,524, and the Volvo EX30 starts at $42,124.

• The higher-end Volvo EX30 with the Twin Motor Performance model is priced at $56,176 and accelerates from 0 to 100 km/h in 3.6 seconds.

• German luxury options start at $62,718 for the Mercedes EQA250 and $64,075 for the BMW iX1. 

• The South African EV market is still in its early stages, with affordability remaining a key challenge for many buyers. Given that South Africa's average salary is $1,728, it would take several months of savings to purchase even the most affordable electric vehicle.

• South Africa plans to introduce several incentives for EV manufacturers. Starting in March 2026, companies will be able to claim a 150% tax deduction on investments in electric and hydrogen-powered vehicles.

• The country also plans to introduce subsidies for EV purchases, and this could significantly boost market growth in the coming years.

• Volvo's Commercial Director, Markus Cromwell, anticipates further sales records as the company moves closer to its goal of becoming an all-electric automaker.

Our take

• The entrance of several EV players in the SA market is a positive sign of expected growth. Customers stand to choose from a pool of options, and competition is expected to lower prices. Though not all competition will be won on price, quality matters, and those that meet customer preferences will stand out.

• South Africa's expected EV incentives for EV manufacturers mean they will compete favourably with the heavily subsidised Chinese EVs on price.