Electric vehicle sales have been relatively slow within the local market when we have a look at the stunning uptake of these rechargeable products in areas like Europe, China and the USA. Some of the key complaints levelled against EVs within the local market, aside from the misguided energy crisis issue, is the range of said products, the question over how good they actually are for the environment, is the cost of EVs, which is likely the most pertinent criticism of these products
Related: Will electric car prices drop?
Why are electric cars so expensive?
As with all new, or nearly new technologies, electric vehicles, in their relative infancy, will be expensive to produce as manufacturers look to recoup their respective investments in the technology that goes into the products. The production of EV batteries and electric motors is still extremely expensive too, and as the technology improves and the economies of scale follow suit, we will see a marked reduction in the cost to produce EVs, and subsequently the selling price of EVs globally too. As the technology gets cheaper, consumers will adopt the technology faster as they will see it as a worthwhile investment.
Rebates, or lack thereof
In many countries around the world, because there is a push towards sustainable and renewable energy, financial incentives are offered to those making the transition from internal combustion (ICE) to electric power, which is driving the conversion rate higher and higher each year. In South Africa, the average EV is still taxed more than an ICE vehicle, with import tax on ICE vehicles at 18% and EVs at a whopping 25%, driving up prices, and making SA one of the only places on earth where the EV is more heavily taxed than a petrol or diesel-powered vehicle.
A reduction in taxation and incentives are required if we are to be lured into purchasing a still relatively new propulsion technology within the local market. This writer's opinion is that the South African government simply makes too much money from the fuel levy to truly commit to an increase in electric vehicles on local roads, so the legislation much be pressured by both local and international parties.
