A South African car hire company, Drive Electric, is making waves in the rental market by exclusively offering electric vehicles (EVs) for rent in Cape Town and Johannesburg.
Founded in 2022, Drive Electric has rapidly expanded its fleet to include 40 electric cars, initially starting with Mini Cooper Electrics and later adding BMW iX3s and Volvo XC40s.
The boutique rental service primarily caters to tourists who are already familiar with electric technology and are looking for sustainable transportation options while exploring the region.
Drive Electric’s unique selling proposition lies in its commitment to providing a premium service without the premium price tag.
The company offers short-term rentals on a no-deposit basis, ensuring clients pay only the daily rate. Vehicles are provided fully charged, typically offering around 350 kilometers of range, which suits most customers who usually drive less than 100 kilometers per day.
In cases where additional charging is needed, Drive Electric has established partnerships that allow customers to charge their vehicles for free at various locations.
This initiative reflects a growing trend in the global car rental market where environmental concerns are becoming increasingly important in consumer decisions.
As the world focuses on reducing carbon footprints to combat climate change, Drive Electric’s commitment to EV rentals puts it ahead in an industry that’s starting to see real change.
However, South Africa’s uptake of EVs remains lower compared to other countries. Industry experts say that while there is interest in electric cars, the infrastructure to support them—like charging stations—is still lacking.
Without enough places to charge, it’s harder for people to embrace EVs.
Sandile Ntseoane, General Manager of the South African Vehicle Rental and Leasing Association (SAVRALA), pointed out that there’s still very little data to track the growth of electric vehicle rentals in South Africa.
This gap in information highlights the challenges both businesses and customers face when trying to make the switch to electric.
One major barrier to adopting EVs in South Africa is their high cost. Import duties on electric cars are set at 25%, compared to 18% for traditional gasoline vehicles, making EVs less affordable for many.
The higher upfront costs could push renters to stick with conventional cars, which often come with cheaper rental rates.
Despite these challenges, there’s growing interest in sustainable options within the car rental industry.
Many companies are feeling pressure from consumers and regulators to reduce their environmental impact.
Some are exploring hybrids as an immediate step toward greener fleets.
For example, Hertz has started adding plug-in hybrids to its lineup, giving customers the flexibility to use either battery power or gasoline.
Another challenge rental companies face is the limited availability of electric vehicles in South Africa.
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