Why More South African Companies Are Choosing EV Fleets Over Ownership

South Africa is seeing a big shift in how businesses use vehicles, with more companies turning to electric vehicle-as-a-service (EVaaS).

This model allows businesses to lease electric cars on a monthly basis instead of buying them, making fleet management cheaper and more eco-friendly.

Companies like Everlectric are leading the way by offering packages that include maintenance, charging, insurance, and real-time tracking for a fixed monthly fee.

Everlectric’s growth shows how popular EVaaS is becoming. The company started with 40 vehicles in 2022 and now has nearly 200.

More businesses are choosing electric fleets as they look for affordable and flexible transport solutions.

This shift is part of a broader trend where companies prefer leasing over owning—similar to how Airbnb and ride-hailing services have changed the travel industry.

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By making electric cars more accessible, EVaaS is helping businesses cut costs and reduce their environmental impact.

Despite this progress, South Africa’s electric vehicle market still faces challenges. High upfront costs and limited charging stations make it harder for more companies to switch.

However, fleet electrification offers a promising solution. Businesses that rely on light delivery vehicles (LDVs) are especially interested in going electric to lower expenses, improve efficiency, and reduce emissions.

Investors and fleet managers see EVaaS as a practical option because it removes the need for large upfront payments.

Instead of buying electric vehicles, businesses can lease them with lower financial risk. The real-time tracking and management tools provided by EVaaS companies also help businesses optimize their fleets and reduce downtime.

The government is supporting the growth of the electric vehicle industry with new policies. A draft white paper aims to increase EV adoption, targeting 20% of new car sales by 2025.

There are also tax incentives, such as a 150% deduction for companies investing in electric and hydrogen vehicle production.

These measures are expected to attract more manufacturers and boost local production.

Charging infrastructure is also expanding. Mercedes-Benz is increasing its network of charging stations across South Africa, while the Free State provincial government has partnered with Zero Carbon Charge to install more charging points.

These investments are making it easier for businesses and individuals to switch to electric vehicles.

The demand for electric vehicles is growing quickly. In the first quarter of 2024, sales increased by 82.7% compared to the same period in 2023.

Experts predict the market will continue to expand at a rate of 18.6% per year from 2024 to 2028.

This growth reflects a shift toward cleaner and more cost-effective transport solutions, driven by both economic and environmental benefits.

Beyond personal cars, the public transport and last-mile delivery sectors are also moving toward electrification.

The Golden Arrow Bus Service is planning to replace its fleet with electric buses, and there are efforts to introduce electric taxis.

These initiatives not only cut emissions but also support the growth of local industries, including electric micro-mobility solutions.

Overall, the rise of electric vehicle-as-a-service in South Africa is helping businesses transition to more affordable and sustainable transport.

As the industry grows, solving challenges like charging infrastructure and high costs will be key.

With strong government support, rising demand, and increasing investment, South Africa is on track to become a key player in the electric vehicle market, creating opportunities for both local businesses and global investors.