South Africa gets first electric minibus taxi amid high EV import tax

Electric vehicle charging
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  • A consortium led by fleet management solutions provider GoMetro, which includes Powerfleet, HSW, ACDC Dynamics, and Stellenbosch University, has launched South Africa’s first electric taxi.
  • The 15-seater electric minibus, dubbed eKamva (kamva is the Xhosa word for future), is supported by a network of  “taxi-rank adjacent” charging stations to aid the taxi industry’s shift to electric mobility. 
  • Justin Coetzee, GoMetro CEO, confirmed that the eKamva has a range of more than 200 km between charges, fast-charges within 75 minutes via a 60 kW DC charger, and slow-charges overnight for 10 hours. 

It reportedly saves between 40% and 70% on operating costs compared to traditional vehicles, depending on fuel price (inland vs coastal) and distance of the taxi route in question. 

The first charging hubs will be located at the Century City and Stellenbosch taxi ranks in Cape Town, with development set to commence in the next 12 months. 

Coetzee shared that the minibus is easier to maintain as there are no oil filters and air filters, spark plugs or oil to change. He emphasised that there are also fewer points of possible failure. 

“Everything stays in warranty, and we partner with the existing service providers servicing the minibus taxi industry today. The parts and service markets are already there, so all we have to do is train them on the new technology, new units and new approaches,” he added. 

Electric vehicles are gaining momentum in South Africa, with the market expected to see significant revenue growth, projected to reach $93.3 million by 2024. The growth is forecasted to continue at an annual growth rate of 8.69% (CAGR 2024-2029), leading to an estimated market volume of $141.6 million by 2029.

Amid this growth, Coetzee stated that the import duties on an electric taxi come to 40% because South African policymakers consider the vehicles as luxury items. Consequently, the price of the minibus will range from R1.1 million ($63,413) to R1.2 million ($69,178). 

He emphasised that if the government removes the unnecessary tax on electric vehicles, they will become more affordable.

“If we change the tax regime and remove the luxury tax on an electric minibus, we will be able to sell this vehicle from R650 000 to R750 000, which is the same price as a Toyota Quantum today, ” he expressed. 

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