Price competitiveness and a growing variety of models have helped fuel new-energy vehicle (NEV) sales in the local market, says research house Lightstone in its newest newsletter.

NEVs refer to plug-in electric hybrids (PHEVs), mild hybrid electric vehicles (HEVs) and battery electric vehicles (BEVs).

In 2020, 73% of all BEV light-vehicle sales in South Africa 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-unit sales, were reported to naamsa | The Automotive Business Council.

By 2022, the largest price-band for new BEV sales increased to between R1-million to R1.5-million (36%), with this category leading BEV sales into 2024 with a 59% share.

In this year, however, there has been a marked shift, with more than half of BEV sales reported to naamsa falling below R500 000.

The variety of BEVs available in South Africa has also increased, with more than 50 unique models recording sales over the first five months of 2026, says Lightstone.

When looking at PHEVs, there were only 18 different PHEV models reporting sales in 2020, but that has since grown to more than 50 models this year.

In 2020, the largest price band for these vehicles was between R2.5-million and R5-million, accounting for 42% of the segment.

By 2022, this had changed, with the R1-million to R1.5-million band comprising 51% of new PHEV light-vehicle sales.

The current year has seen further change, however, with almost 90% of new PHEV sales so far priced between R500 000 and R1-million.

Pricing for new HEV sales has, however, 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 this year.

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 sold.

It is also possible to look at the pricing regime from a different angle.

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 so 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 PHEV 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 this year dipping below R1-million for the first time.

The increasing availability of BEVs domestically since 2020, particularly in the sub-R500 000 bracket, has allowed the weighted average price of BEVs to drop below the weighted average price of both diesel-ICE and HEVs for the first time this year.

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, indicates Lightstone.

HEVs, however, still follow 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, says Lightstone.

What has been the overall result of all of these price changes?

Lightstone says combined NEV sales have cracked 5% market share of South Africa’s new-light vehicle market for the first time.

In May this share accelerated to more than 6%.

The growth could be partly attributed to the impact of the conflict in the Middle East on global oil prices, which has affected local fuel prices, concedes Lightstone, but adds that the improved price competitiveness among NEVs definitely contributed to this growth.