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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.

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Manufacturing is the backbone of any successful industrial economy, but domestic demand is typically insufficient to develop sustainable industrial sectors. To achieve the industrial development Africa, and South Africa, is aiming for, industrial ecosystems must be created, speakers said during the first day of the thirteenth Manufacturing Indaba, held in Sandton, Gauteng, on July 14.

"In the future, we want to be processing our own resources, making higher-value products, expanding supply chains and creating industries and jobs and wealth. To achieve this, we need to develop stronger regional trade form strategic partnerships and ensure sustained investment in productive capacity, modern technology and critical skills," Deputy President Paul Mashatile told delegates.

Industry is the engine room that enables economies to transform raw materials into products, strengthens domestic capabilities and builds economic resilience, said Trade, Industry and Competition Deputy Minister John Steenhuisen.

All countries that have successfully industrialised have done so with government support, which is why governments deliberately supports manufacturing.

However, South Africa's industrial future would not be built on domestic demand, and regional and continental markets presented the greatest growth prospects. The opening of markets created catalytic effects on industries but required local value chains to unlock these opportunities, he said.

For example, the 15-country Southern African Development Community bloc is an important platform to create regional value chains, cooperation and larger markets for products. Companies could achieve economies of scale through greater regional integration, which would support the different capabilities of countries.

Similarly, the African Continental Free Trade Area (AfCFTA) presented an opportunity to industrialise the continent through increasing trade, investment and manufacturing cooperation, said Steenhuisen.

The strategic vision for Africa must see it transform its resources to become a factory for the global green economy. This could be achieved through a unified continent-wide industrial ecosystem, facilitated by the AfCFTA.

Key initiatives would include integrating corridors, which were fundamentally important for industry. It was cheaper to transport maize from Mexico to the Democratic Republic of Congo (DRC) than to transport maize from Zambia to the DRC owing to a lack of corridor infrastructure to enable the seamless movement of goods and services around Africa, he stated.

"Through industry, innovation and inclusive growth, Africa can build a more prosperous and self-reliant future. Industrialisation is not only about increasing production, but about improving quality, competitiveness, sustainability and resilience. It is a pathway to economic sovereignty and expanding opportunities for our people," said Mashatile.

Efficient transport corridors and logistics systems, railways and ports form the backbone of industrial growth by connecting producers to markets, lowering costs for businesses and strengthening regional integration.

Efficient transport corridors were also needed to unlock the potential of the AfCFTA by improving connections and reducing transport costs, he said.

"Investments to support industrial growth and development are about creating opportunities and improving the quality of life of people. Manufacturing creates employment, keeps value circulating and advances the vision of creating a more integrated and prosperous continent."

To achieve industrial growth, Africa must invest in digital skills, robotics, coding, advanced engineering, data science and analytics, as well as modern artisan development programmes.

Smart manufacturing technologies would allow for the improvement of efficiencies, reduce waste and enable manufacturers to respond to changing market demands. AI would help supply chains to be more responsive and resilient, and automation would help strengthen ind...

Creamer Media Senior Deputy Editor Irma Venter talks about the latest developments in South Africa's automotive industry, including the rising popularity of Chinese vehicle brands and Chery South Africa's manufacturing strategy after having taken ownership of Nissan South Africa'

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naamsa | The Automotive Business Council has hit back at critics describing the Automotive Production and Development Plan (APDP) as a honeypot, while also questioning the argument in favour of scrapping the government support programme to enable a reduction in the country's value-added tax (VAT) rate.

The auto industry body says national government supports the domestic automotive industry as "the returns far exceed the incentives".

"The APDP is not designed to subsidise manufacturers, it is designed to grow South Africa's industrial economy," naamsa notes in a statement.

naamsa says critics of the APDP focus almost exclusively on its perceived fiscal cost, while ignoring the economic returns it generates.

"That is neither sound economics, nor sound public policy.

"Based on the figures cited by critics, the APDP is estimated to provide approximately R35-billion to R40-billion in duty rebates and production support.

In return, however, says naamsa, the programme in 2025 alone generated around R137-billion in audited local value-addition (LVA) through domestic manufacturing, [component] supplier development and localisation, while it also supported R270.8-billion in automotive exports, making the automotive industry one of South Africa's largest export earners.

"Measured purely on these two indicators, every R1 associated with the APDP supports nearly R4 in domestic manufacturing value, and almost R8 in export earnings.

"This excludes the wider economic benefits generated through employment, supplier development, corporate taxes, pay-as-you-earn, VAT, technology transfer and foreign direct investment.

"The real question is therefore not 'what does the APDP cost?' The more appropriate question is, 'what would South Africa lose without it?'"

Without a globally competitive automotive industry, South Africa would forfeit billions of rand in exports, local manufacturing output, investment and skilled employment, which would weaken the country's industrial base, reduce foreign exchange earnings and ultimately shrink the national tax base, states naamsa.

"That is why the APDP should be viewed not as a fiscal cost, but as one of South Africa's highest-performing industrial investments.

"Industrial policy cannot be assessed through static accounting alone. It must be evaluated on its net economic and fiscal impact."

National Treasury is temporarily withholding the July equitable share transfers to 70 municipalities across all nine provinces in an effort to "instil fiscal discipline and ensure that public money is properly managed".

Treasury says the goal is also to address unauthorised, irregular, fruitless and wasteful expenditure, and to ensure that municipal officials and office-bearers are held accountable for their management of public funding.

A local government equitable share is aimed at enabling municipalities to provide basic services (water, electricity, sanitation and refuse removal) to households, especially the poor. It is distributed as unconditional grants, which means municipalities may decide how to spend it within their array of functions.

Treasury says the decision to withhold the funding follows what it calls persistent and serious non-compliance with the Municipal Finance Management Act (MFMA) and its supporting regulations.

The municipalities involved are as follows, with the Free State in the lead, followed by North West.

In the Eastern Cape there are six municipalities: Buffalo City, Nelson Mandela Bay, Makana, Sundays River Valley, Inxuba Yethemba and Port St Johns.

In the Free State almost all of the municipalities – 16 – made the list: Mangaung, Letsemeng, Kopanong, Mohokare, Xhariep district municipality, Masilonyana, Tokologo, Matjhabeng, Nala, Dihlabeng, Nketoana, Maluti-a-Phofung, Phumelela, Mantsopa, Ngwathe and Mafube.

In Gauteng, cash-strapped Johannesburg now has one more problem to tackle. The list here includes six names: City of Johannesburg, Emfuleni, Lesedi, Sedibeng district municipality, Merafong City and Rand West City.

In KwaZulu-Natal the list includes seven municipalities: iMpendle, uMzinyathi district municipality, Newcastle, eMadlangeni, Amajuba district municipality, AbaQulusi and the uMkhanyakude district municipality.

In Limpopo there are five: Mopani district municipality, Musina, Thabazimbi, Modimolle-Mookgopong and Fetakgomo Tubatse.

In Mpumalanga the list includes Victor Khanye, Emakhazeni and Nkomazi, bringing the tally to three municipalities.

In Northern Cape the list includes 11 local councils, namely Kamiesberg, Khâi-Ma, Ubuntu, Umsobomvu, Emthanjeni, Renosterberg, Thembelihle, Siyathemba, !Kai !Garib, Magareng and Phokwane.

In the North West the list is almost as long as in the Free State, and includes 13 municipalities: Madibeng, Kgetlengrivier, Tswaing, Mafikeng, Ditsobotla, Ngaka Modiri Molema district municipality, Naledi, Mamusa, Dr Ruth Segomotsi, Mompati district municipality, City of Matlosana, Maquassi Hills and JB Marks.

In the Western Cape, there are three municipalities on National Treasury's list, namely Theewaterskloof, Laingsburg and Beaufort West.

National Treasury says all of the municipalities on the list have been given sufficient notice in writing ahead of the withholding of funds.

They were also given a platform to send, in writing, reasons why their funds should not be withheld.

Treasury says the temporary withholding of funds is underwritten in terms of section 216(2) of the Constitution, read with section 38 of the Local Government: Municipal Finance Management Act 56 of 2003.

"It is important to note that this is a corrective rather than punitive measure. Because the withholding of the funds will be for a short-term period, [we do] not foresee any impact on service delivery," Treasury says in a statement.

It adds that noncompliance with the MFMA is not only a dereliction of fiduciary duties by the political and administrative leadership of municipalities, but that it also threatens the financial sustainability of bulk suppliers, such as Eskom and the water boards.

"In addition, failure to pay third parties negatively impacts on the ability of statutory bodies to continue operating optimally. The statutory bodies referred to are the Auditor-General of South Africa, the South African Revenue Service, and the Financial Sector Conduct Authority," notes T...

China's Chery group has officially taken ownership of the former Nissan assembly plant in Rosslyn, Tshwane.

The car maker consists of the Jetour, Lepas, Chery, Jaecoo, iCaur and Lepas brands.

Last year, Chery's Tiggo 4 Pro became South Africa's best-selling passenger car.

Chery says the next year will see the group invest in upgrading the more than 60-year-old plant's facilities and utilities, with initial production expected to start in the middle of next year.

During the ramp-up period in the last six months of 2027, planned production is estimated at 15 000 units.

Production will start with the Tiggo 4, with the Jetour T-series and Jaecoo J5 also on the roster for local assembly.

The facility has a yearly production capacity of 50 000 vehicles.

Chery has committed to retaining 692 of Nissan's existing employees to ensure operational continuity, while it has also promised to create nearly 3 000 direct and indirect jobs across the manufacturing, supply chain and services functions.

The company says it has launched a localisation programme through initial engagement with local Tier 1 parts suppliers as it works towards achieving a 40% localisation target by 2028.

This could include attracting China-based suppliers to South Africa.

Chery says its long-term vision is to develop the facility into a comprehensive automotive hub encompassing research and development, supply-chain operations, and skills development.

"At Chery, we live by one philosophy: In Somewhere, For Somewhere, Be Somewhere," said Chery Automobile Company chairperson, president, and founder Yin Tongyue as his company took ownership of the Pretoria facility.

"It means wherever we invest, we commit. We become part of the local economy, part of the community, part of the country's future.

"We have moved from being an importer to a manufacturer, and from a market participant to a long-term partner in South Africa's industrial story."

Chery has the long-term ambition to sell more than 100 000 vehicles a year in South Africa, which, if achieved, and considering the current sales leaderboard, could see it slot in at number two in the local market.

Toyota currently leads the local market, selling a record 148 124 vehicles last year, with Suzuki in second place and Volkswagen in third, both at less than 100 000 units a year.

Chery's industrial portfolio includes passenger vehicles, commercial vehicles, smart agricultural machinery, green photovoltaics, mineral resources, robotics, and the circular economy.

Founded in 1997 and headquartered in Wuhu, the group's business spans more than 130 countries, and it has ranked number one among Chinese-brand passenger vehicle exporters for 23 consecutive years.

The South African Photovoltaic Industry Association (SAPVIA) hosted its AGM this week and also released its annual report. The recognised voice of South Africa's PV industry, representing almost 500 members across the value chain, Creamer Media's Terence Creamer used the opportunity to pose some questions to CEO Dr Rethabile Melamu on the state of the industry and its outlook. The questions and Melamu's responses follow:

Creamer Media: What was the performance of the solar market in South Africa during 2025, and what were the key drivers?

Rethabile Melamu: South Africa solidified its position as a mature, gigawatt-scale solar market during the 2025/26 financial year. Cumulative installed solar PV capacity officially crossed the 10 GW threshold, driven by 1.6 GW of new installations in 2025, making South Africa Africa's leading solar market and one of the top 20 globally.

Growth was anchored by public and private investment in the utility-scale and commercial and industrial (C&I) segments, with the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) contributing 0.3 GW and non-REIPPPP projects contributing 1.3 GW. Public procurement achieved major milestones through REIPPPP Bid Window 5, with projects reaching commercial operation, including the 225 MW Grootfontein Solar Cluster and the twin 75 MW Grootspruit and Graspan plants (150 MW combined).

The private corporate wheeling market achieved a breakthrough with the commercial launch of the 150 MW Springbok project serving Amazon, Sibanye-Stillwater and Vodacom. By contrast, the residential segment experienced a post-loadshedding normalisation.

The solar market has shifted from emergency energy security for households and businesses to structured utility-scale and C&I procurement. This momentum is sustained by REIPPPP allocations, private corporate power purchase agreements (PPAs), expanded wheeling frameworks and long-term cost optimisation in response to rising electricity tariffs.

What is the outlook for demand in 2026 and beyond, and what will be the key contributors to demand?

The principal contributors to solar PV demand from 2026 onwards will be the REIPPPP, alongside continued growth in corporate wheeled PPAs under a liberalised multi-buyer merchant model. Growth will be further augmented by C&I self-generation and increasingly hybrid solar-plus-battery energy storage systems (solar+BESS) configurations to mitigate high electricity costs and grid instability.

These trajectories underpin the national strategy towards the long-term solar deployment goal of 25 GW by 2039 outlined in the Integrated Resource Plan (IRP).

The 2025 South African Renewable Energy Grid Survey (SAREGS) identified a total renewable-energy pipeline exceeding 220 GW, an 86 GW increase on 2024, with over 46 GW of advanced-stage solar PV projects proposed for grid connection by 2030, supplemented by a further 11 GW of solar PV paired with BESS. This pipeline is supported by exponential growth in the private sector. National Energy Regulator of South Africa (Nersa) data shows that annual registered private capacity peaked at 5.23 GW in 2025, up from 0.13 GW in 2021. This pushed cumulative registered capacity past 12 GW.

What are the main constraints to higher levels of demand?

The principal constraints are grid-related and regulatory rather than demand-side. Transmission and distribution capacity remain the binding bottlenecks. While the approved Congestion Curtailment Proposal aims to unlock approximately 3.4 GW of grid capacity in constrained regions by allowing managed curtailment, grid limitations persist.

There has been a pattern of Eskom rejecting embedded-generation applications (including behind-the-meter projects) on network-capacity grounds, even where no material export exists.

Municipal-level friction adds further drag to small-scale embedded generation (SSEG), including burdensome multi-department SSEG approval workflows, with the City of Tshwane's 13-department p...

Engineering News editor Terence Creamer discusses what is driving the so-called age of electricity and what this could mean for South Africa and the country's energy policy.

South Africa's new-vehicle market recorded the strongest June since 2007, keeping the industry on track to surpass the 600 000-level mark this year, says the National Automobile Dealer Association (NADA).

Total new-vehicle sales in the domestic market reached 596 818 units last year, compared with 2024's 515 976 units.

According to data released by naamsa | The Automotive Business Council, 54 482 new vehicles were sold in the local market during June – up 15.3% compared with the same month last year.

Passenger vehicle sales jumped by 18.1% to 38 393 units.

The commercial vehicle market also continued its positive trajectory last month, with all segments recording year-on-year growth.

Light commercial vehicle sales increased by 8.4% to 13 171 units, medium commercial vehicle sales inched up by 0.6%, while heavy trucks and buses posted strong growth of 15.9%.

Year-to-date, the total new-vehicle market has now reached 315 303 units –12.9% ahead of the corresponding period last year.

The bad news, however, is that export volumes continue to soften as they declined by 6.9% in June, to 33 879 units. Exports for the first six months of the year were now down 7.8%, at 181 731 units.

NADA executive Ryan Seele says the domestic market continues to demonstrate "remarkable resilience" despite ongoing economic pressures.

"Consumers are still navigating a challenging economic environment, with the rising cost of living, fuel prices and broader financial pressures all influencing purchasing decisions.

"Yet the market continues to perform exceptionally well, suggesting buyers are recognising value where it exists and that they remain prepared to commit when the right opportunity presents itself."

Seele believes one of the characteristics of the current market is a shift back towards trusted, established brands.

"History shows that during periods of economic uncertainty, consumers become more cautious about where they spend their money.

"We saw this during previous economic downturns, and we are seeing similar behaviour today. Buyers are gravitating towards brands they know and trust, placing greater emphasis on reliability, dealer support and long-term ownership value."

Seele says this trend is evident in the recent sales numbers of South Africa's traditional leading passenger vehicle brands, with Toyota, Suzuki and Volkswagen all recording three consecutive months of month-on-month growth.

Seele says June sales also benefited from improved market sentiment.

"We saw increased activity during the latter part of the month, helped by growing optimism around lower fuel prices and easing geopolitical tensions in the Middle East. Together with attractive quarter-end offers from a number of manufacturers, this created a more positive buying environment.

"Should current momentum be sustained, the industry is well positioned to exceed 600 000 new vehicle sales this year."

WesBank senior economist Thanda Sithole is also positive about the outlook for vehicle sales in the second half of the year.

"Should the recent easing in fuel prices prove durable, it would provide further support to household affordability, creating a more favourable environment for new-vehicle demand in the second half of the year."

Sithole adds that the average contract terms for both new- and used-vehicle finance have continued to lengthen within the asset finance group, while application volumes have increased meaningfully compared with a year ago.

At the same time, average deal sizes for new vehicles have softened.

Taken together, these trends suggest that consumers are willing to buy vehicles, but are structuring finance more prudently to preserve monthly affordability in an environment of elevated living costs and tighter financial conditions."

WesBank data shows a modest increase in the proportion of new deals structured with a balloon payment, together with a slightly higher average balloon percentage per deal.

Rapid declines in battery costs are transforming the economics of renewable power, a new report by the International Renewable Energy Agency (Irena) asserts, adding that the co-location of batteries with new utility-scale solar PV is emerging as the default configuration.

In 2025, battery costs fell faster than those of any other energy technology, with Irena estimating the installed cost of a four-hour utility-scale battery at $140/kWh – a decrease of close to 30% in a single year and around 95% since 2010.

Global battery deployments rose strongly to between 108 GW and 112 GW last year, representing a 40% to 48% year-on-year increase, with falling battery costs driving the rapid growth of hybrid solar-plus-storage systems.

"As storage has become more affordable, solar and wind projects are increasingly being paired with battery energy storage systems," the Renewable Power Generation Costs in 2025 report states.

About one-quarter of all utility-scale solar PV commissioned globally in 2025 had been paired with battery storage, which Irena calculates to be a roughly sixfold rise in the share of co-location since 2020.

Co-location, the report adds, has moved from a niche option to the default configuration for new utility-scale solar, with the best hybrid sites now delivering 'firm' around-the-clock power at below $85/MWh.

"This is improving the utilisation of grid connections, shifting generation to periods of higher demand and reducing exposure to low or volatile electricity prices."

Irena says two forces have been driving this shift, including:

lower project costs, with shared grid connections, land and balance-of-plant systems reducing capital costs by around one-fifth relative to building the two assets separately; and changing market conditions, whereby the rising number of hours of zero or negative wholesale prices in high-penetration markets such as Europe and Australia has eroded the revenues of standalone solar, while the addition of storage shifts output to higher-value hours.

"This trend [of co-location] reflects growing pressure on standalone solar projects in some markets, where declining daytime prices and increasing curtailment have reduced the value of generation during peak production periods."

Irena forecasts that the costs of hybrid systems should keep falling over the next five years, but warns that the decline will be slower and uneven across various regions.

"The costs of mature technologies, such as solar PV and onshore wind, are plateauing, while batteries and long-duration storage are expected to see further cost reductions as deployment increases."

Overall renewable power costs remained low last year, with Irena estimating that more than 90% of the utility-scale renewable capacity added during the year was cheaper than the lowest-cost new fossil alternative.

"In 2025, solar PV remained at its 2024 level of $44/MWh, while wind continued to improve, with onshore wind falling by 4% to $33/MWh and offshore wind by 3% to $78/MWh," the report states.

However, Irena highlights that clean-tech manufacturing investment has halved, from a quarterly peak of $70-billion in 2023 to $35-billion by the end of 2025, while China is reorganising its renewables industry amid input price increases.

"These developments, combined with a shifting trade and tariff landscape, are likely to exert upward pressure on total installed costs throughout this year."

Over the longer term, however, Irena's outlook suggests that costs will continue to decline through to 2035, though far more slowly than before. Since 2010, the cost of solar PV has fallen by 89%, while onshore wind costs have declined by 71%.

Despite the plateau, Irena expects renewables to retain a cost advantage over fossil fuels, given that the cost of new fossil fuel-fired generation continued to rise in 2025, partly owing to a gas-turbine shortage driven by surging data-centre demand.