New Energy Vehicles are becoming more price competitive

Are New Energy Vehicles (NEV) – Traditional Hybrids (HEV), Plug-in Hybrid (PHEV) and full Battery Electric vehicles (BEV) – shaking off the stigma of being too expensive?

In April 2026 NEVs cracked 5% market share of the new Light Vehicle market for the first time, and in May this share accelerated to over 6%. The growth could be partly attributed to the impact of the conflict in the Middle East on global oil prices, which have affected local fuel prices. The price for a litre of both diesel and petrol reached record domestic highs in April and May, respectively, whilst improved price competitiveness amongst NEVs has also contributed to this growth.

Weighted average price by fuel type for Light Vehicle sales: 2020-2026

In 2020 petrol-powered internal combustion (ICE) vehicles were the cheapest of the Light Vehicles (on average) on offer in South Africa, with a weighted average price of R343 000. They were followed by diesel-powered ICE vehicles (R556 000) and HEVs (R855 000), while BEVs (R1.41 million) and PHEVs (R2.36 million) were well over the R1 million mark.

While the ICE-powered sectors have experienced steady growth in weighted average pricing over the intervening years (diesel more than petrol), the NEV grouping has followed a slightly different trajectory. Following the introduction of the Corolla Cross Hybrid in 2021, the weighted average price of traditional hybrids fell significantly in 2022, dropping below diesel-ICE vehicles, before following a similar trend to the ICE-powered pricing.

The plug-in hybrid category, which was fairly niche in terms of the number of models available, saw weighted average pricing move in a band between R1.4 million and R2.4 million until 2025, when the variety of models available increased, particularly in the sub-R1 million bracket. This resulted in the weighted average price in 2026 dipping below R1 million for the first time. The availability of BEVs domestically has also increased since 2020, particularly in the sub-R500 000 bracket, allowing the weighted average price of BEVs in 2026 to drop below the weighted average price of both diesel-ICE and traditional hybrids for the first time.

What is also interesting to note is that, because earlier PHEV and BEV models entered the market at higher price points, the average used-vehicle price in these categories is now higher than the weighted average new-vehicle price. Traditional hybrids, however, still show the more typical pattern, with new prices running marginally higher than used vehicles on average. This is likely to change over time, as these newer, more affordable models gradually enter the used vehicle space.

Average price of Battery Electric Vehicles - new versus used: 2020-2026

Average price of Traditional Hybrid Vehicles - new versus used: 2020-2026

Average price of Plug-in Hybrid Vehicles - new versus used: 2020-2026

Price competitiveness and the growing variety of models have helped drive NEV growth. In 2020, 73% of all BEV Light Vehicle sales were priced between R500 000 and R1 million, with the balance of sales between R1.5 million and R5 million. At the time, only 14 models, contributing 92 sales, were reported to naamsa.

By 2022, the largest price-band for new BEV sales was between R1 million to R1.5 million (36%), and this category continued to lead BEV sales into 2024 with a 59% share. So far in 2026, there has been a marked shift, with more than half of BEV sales reported to naamsa this year falling below R500 000. The variety of BEVs available in South Africa has also increased, with over 50 unique models recording sales over the first five months of 2026.

Price band share of new Battery Electric Vehicle sales: 2020-2026

In 2020 there were just 18 different PHEV models reporting sales, but that has grown to more than 50 models in 2026.

In 2020, the largest price band for these vehicles was R2.5 million to R5 million, accounting for 42% of the segment. By 2022, this had shifted slightly, with the R1 million to R1.5 million band comprising 51% of new PHEV light vehicle sales. The current year has seen further change, with almost 90% of new PHEV sales so far priced between R500 000 and R1 million.

Price band share of new Plug-in Hybrid Vehicle sales: 2020-2026

Pricing for new HEV sales has followed a more traditional pattern over the past six years. In 2020 88% of all new HEV Light Vehicle sales (19 different models) reported to naamsa were priced in the R500 000 to R1 million band.

With the introduction of the Toyota Corolla Cross Hybrid, the price point shifted in 2022, and 71% of HEV sales fell into the sub-R500 000 band. By 2024, most sales had returned to the R500 000 to R1 million band, a scenario which has continued into 2026.

What has changed, however, is the number of different options available to South Africans, with 2024 marking the first time in which more than 50 unique HEV models were reported as sold.