South Africa’s automotive industry is facing challenges as global demand for fully electric vehicles (EVs) slows, while hybrid vehicle imports and sales continue to rise.

Battery-only EVs account for less than 1% of new vehicle sales in 2025, hindered by high prices, limited charging infrastructure, and regulatory hurdles. Registrations of fully electric vehicles have dipped, reflecting both global market uncertainty and domestic affordability constraints.

In contrast, hybrid and plug-in hybrid electric vehicles (PHEVs) are gaining popularity, providing a more accessible option for South African consumers seeking efficiency without relying solely on electric infrastructure.

The slowdown in EV adoption is compounded by high import duties on fully electric vehicles and an underdeveloped charging network, while global shifts in automotive markets and competitively priced hybrid models from Chinese automakers influence local demand patterns.

Overall vehicle sales remain resilient, but local production faces competitive pressures from imports, highlighting the sector’s need to balance current market realities with long-term plans for electrification and industrial growth.