BYD electrifies South African EV market
Chinese EV giant plans to ramp up sales in a market where less than 1% of cars sold are electric
BYD flagship store in Johannesburg. Photo source: BYD South Africa
Chinese electric vehicle (EV) maker BYD, which began selling cars in South Africa in mid-2023, has unveiled plans to significantly expand its business in Africa’s biggest economy. The company recently released the most affordable EV in the country, announced plans to roll out a national charging network, and indicated it could establish local manufacturing if demand warrants it. BYD sees South Africa as a pivotal market – and a springboard for growth into the rest of the continent.
High prices, long charging times and limited driving range have held back EV adoption in South Africa. In 2024, only 1,257 fully electric cars were sold, accounting for just 0.24% of all new vehicles registered. BYD’s own sales are not included in these figures, as the company does not publish its data locally.
Seeking to broaden its customer base, BYD has launched the entry-level Dolphin Surf at ZAR340,000 (US$19,500), making it the cheapest electric car on the market. Analysts say that pricing the vehicle below the psychological ZAR400,000 threshold could help stimulate demand. The company has also partnered with local bank Absa to offer finance packages to its customers.
The carmaker plans to install up to 300 public charging stations nationwide to support its sales push. It also intends to introduce its ultra-fast 1MW charging technology – capable of adding about 400km of range in five minutes – once compatible vehicle models become available.
BYD recently opened its flagship dealership in Johannesburg, which serves as both a retail hub and an education centre for consumers new to EVs. The company already has more than a dozen outlets across the country and aims to expand its dealer network further. Alongside the Dolphin Surf, BYD is promoting its other models, including the Seal sedan and Sealion SUV, while positioning its plug-in hybrids as a bridge for drivers still cautious about fully electric cars. BYD executive vice president Stella Li told reporters that the company could consider setting up manufacturing operations in South Africa if demand continues to rise. She cited Brazil as an example, where BYD opened a factory earlier this year after achieving strong sales from imported vehicles. South Africa already hosts an established vehicle manufacturing industry, with BMW, Ford, Mercedes-Benz and Toyota producing vehicles locally.
South Africa has been eclipsed by Morocco as the continent’s top automobile manufacturing centre. The government of South Africa is trying to attract Chinese EV makers to set up manufacturing plants as part of efforts to boost economic growth and create jobs. Late last year, it introduced a tax incentive to encourage production of new-energy vehicles, allowing manufacturers to deduct 150% of the cost of buildings and equipment used primarily for producing electric or hydrogen-powered vehicles.
Several other Chinese automakers have launched EVs in South Africa. Great Wall Motors has added hybrid and electric options under its Ora and Haval brands, while Chery plans to roll out more battery-powered models alongside its conventional range. Dongfeng, meanwhile, unveiled its fully electric Box model in the country at the end of 2024.
References
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