The market readiness for electrical vehicles in South Africa

Abstract

There is an increasing demand for electrical vehicles globally, and markets are embracing the shift to electric vehicles. This has been pushed by several global issues, including the environmental issues that the fossil fuel market is harming the environment with CO2 emission, and there is the belief that the world is running out of oil reserves for the fossil fuel market. The study was guided by the study’s objectives, Conceptual framework and literature on electrical vehicles and factors which underpins the market readiness for electrical vehicles, including infrastructure development, government involvement with the department of transport and original manufacturer equipment (OEMs) and public and private transport users in their knowledge about electrical vehicles and how they view this market in South Africa. The study’s conceptual framework was auto manufacturers, government, internal and external factors for electric vehicle market readiness in South Africa and extended the framework of the Unified Theory of Acceptance and Use of Technology model (UTAUT). Study adopted exploratory research as there was limited knowledge of electric vehicles in South Africa. The data was collected using online self-completion questionnaires, and questionnaires were formulated around the aim and objectives of the study of electrical vehicles for this study. The self-administered questionnaires for public and private vehicle users, OEMs, and Government employees within the transport and auto manufacturers department. It comprised 66.1% of respondents working in the private sector, including OEM and auto manufacturers, 14.5% working in the government department of transport, 15.3% of respondents were business /entrepreneurs, and 4% were unemployed/preferred not to say. The study found a need to educate consumers about electric vehicles and the benefits of transitioning from internal combustion engines to electric vehicles. The government must collaborate with auto manufacturers and OEMs to create a market readiness for electrical vehicles in the public and private sectors. A clear roadmap for electric vehicle infrastructure and investment in major cities. Cash incentives and rebates are needed to attract customers to purchase electric vehicles. The findings indicate that more work still needs to be done around electric vehicles in South Africa for market readiness, including the cost of ownership and infrastructure investments for public and private spaces to accommodate charging infrastructure.