Volvo offers 2 years free charging for new EV buyers

From the newsletter

Volvo Car South Africa, the country’s best-selling EV manufacturer, is offering new buyers two years of free public charging. It is part of the automaker’s latest marketing campaign aimed at extending its market lead. Volvo is also offering an allowance to install home chargers that are faster than the standard home plug.

• The cost of entry for EVs in South Africa – and Africa as a whole - is high. An electric car is not only more expensive than an ICE, but finding a charging station is hectic. Volvo is trying to reduce this barrier to entry for new buyers through its latest offers.

• But free charging is not the only method that EV firms in South Africa are deploying to entice buyers. They are also slashing prices and handing out longer-term warranties for first-time buyers.

More details

• Volvo is providing new EV buyers with two years of free public charging, a GridCars wallbox with installation support, and 10 GB of Vodacom data per month for three years. This enables significantly faster charging compared to a standard household plug, ensuring quicker battery replenishment. 

• There are currently more than 23 EV models being sold in South Africa. But competition is heating up, with global giants such as BYD flooding the market with way cheaper cars. The BYD Dolphin Mini, its cheapest car selling for less than $10,000, will launch there this year.

• Existing top models that are being sold in the country include Atto 3, Dolphin and Seal (BYD), Dayun Yuehu S5, EV Africa City Blitz, BMW iX1 and BMW i4, Mercedes Benz EQA and EQB, and GMW Ora 03.

• Despite this, more than 42% of EVs sold there in 2024 were Volvo cars. The company sold 539 EVs during the period, while the cumulative number of units sold in the country was 1,257. Volvo’s all-electric range includes the popular EX30, XC40 Recharge, and C40 Recharge — each catering to different EV needs. 

• Volvo joins the growing number of EV manufacturers and dealers that are enticing prospective buyers with offers and raffles. CFAO Group, which sells BYD brands in multiple Africa markets, is also sponsoring sports tournaments. Last week, the company awarded the BYD Atto 3 worth $65,000 to the winner of the Magical Kenya Open golf tournament held in Nairobi.

• As consumers get an increasing lineup of options to choose from, price competition will go a notch higher. The entry of cheaper models (some cheaper than ICEs) as well as pricier top-of-the-range options will help serve different market segments, driving EV adoption. 

Our take

• South Africa has just over 350 EV charging stations. Further, these stations are not well distributed across the country. Even if EV prices continue to decline, the adoption of electric cars will not change much if charging stations are not available. Therefore, EV companies like Volvo should increase their investments in public chargers. 

• Insurance is a big component of the motor vehicle business. Yet, not much attention has been put on driving down the cost of insurance for EVs not only in South Africa but the whole continent. EV dealers should help buyers to access the best insurance policies.

• It is no secret that the high cost of buying EVs has been the single biggest impediment to their adoption in Africa. Financiers are still reluctant to finance the acquisition of EVs. EV companies should explore newer models of enabling buyers to pay for their cars over time interest-free.