PHEV Sales Continue to Record Phenomenal Growth in South Africa

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Plug-in hybrids are the hottest thing in South Africa right now in terms of sales growth. Sales of plug-in hybrids (PHEVs) were up 280% in 2025 compared with sales figures from 2024. naamsa’s quarterly review of business conditions for the South African motor vehicle manufacturing industry during the first quarter of 2026 just came out and PHEVs were yet again the fastest growing vehicle type. In Q1, PHEVs were up by a whopping 430%, from 241 units sold in Q1 2025 to 1,277 in Q1 2026. BEVs were up 97%, from 276 in Q1 of 2025 to 544 in Q1 2026. Plugless hybrids continue to slide, falling 7% from 2,970 units in Q1 2025 to 2,764 units in Q1 2026. So, it appears consumers are now starting to favour plug-in vehicles over HEVs in South Africa. In the overall picture, sales of new energy vehicles still make up a tiny share of South Africa’s new vehicle sales market, which is still dominated by pure ICE vehicles.

The overall market is growing in South Africa, with some monthly sales hitting highs last seen over a decade ago. Here is a summary of Q1 2026 from naamsa:

• Aggregate new vehicle sales during the first quarter 2026 recorded an increase of 12.4% compared to the corresponding quarter of 2025 and an increase of 1.2% compared to the fourth quarter of 2025. In 2026, first quarter new passenger car sales totaled 114,482 units, an increase of 12,706 units compared to the 101,776 new passenger cars sold during the corresponding quarter of 2025. Aggregate commercial vehicle sales during the first quarter of 2026 were 47,464 units, recording an increase of 5,108 units compared to the 42,356 units sold during the fourth quarter of 2024.
• First quarter 2026 aggregate industry employment as of 31st March 2026 totaled 31,905, reflecting an increase of 27 jobs compared to the 31,878 industry head count at the end of December 2025.
• Average industry capacity utilisation levels during the first quarter of 2025 reflected prevailing market conditions as well as lower vehicle production volumes driven by lower export volumes during the quarter.
• New energy vehicle (NEV) sales by 23 industry brands increased by 31.5% from 3,487 units in the first quarter of 2025 to 4,585 units in the first quarter of 2026. That means in Q1 of 2026, NEVs had a share of 4%. Taking out plugless hybrids, plugins had a share of just 1.6%.
• Aggregate capital expenditure by the major light vehicle manufacturers in 2025 amounted to R7.2 billion ($435 million), linked to new-generation model investments.
• South Africa’s global vehicle production market share decreased from 0.65% in 2024 to 0.64% in 2025, while its global vehicle production ranking remained at 21st.
• First quarter 2026 domestic vehicle production reflected a decrease of 5.3% compared to the corresponding quarter in 2025. Vehicle exports decreased by 10.3% in the first quarter of 2026 compared to the corresponding quarter in 2025 due to decreasing exports to all major regions, with the exception of Africa and North America.
• The naamsa CEO Confidence Index, as an in-house leading business confidence indicator of current and future developments in the domestic automotive industry, reflects the sentiment expressed by naamsa CEOs in the first quarter 2026 compared to the first quarter of 2025 as well as automotive business conditions and the country’s economy in general for the next 6 months.

More PHEVs are coming to South Africa. With more PHEV models expected to be launched in South Africa in 2026, we expect the decline in HEV market share coupled with the increase in PHEV market share to continue. One of the more exciting PHEVs coming to South Africa in 2026 is the all-new Caravelle plug-in hybrid 4MOTION. This vehicle will arrive in South Africa soon. For the new T7 Caravelle PHEV, one electric drive motor per axle drives the front and rear axles. Volkswagen says both motors thus ensure optimum drive-off performance and traction. The prerequisite for this is that the battery is sufficiently charged. The T7 PHEV comes with a battery pack with a capacity of 19.7 kWh and fast charging. When the battery is fully charged, the plug-in hybrid electric vehicle enables purely electric distances of up to 91 kilometres (57 miles).

With the recent petrol and diesel price hikes due to the conflict in the Middle East, I think PHEV and BEVs will continue to grow in Q2 and the rest of the year as drivers look to cut fuel costs. I will keep you posted on these developments.