Real case for EVs run deeper than fuel price hikes – Volvo SA boss

Spiralling fuel prices are prompting renewed interest in electric vehicles (EVs), but Volvo Car South Africa says the real shift is being driven by the long-term cost of ownership rather than short-term price shocks at the pump.

The company notes that recent internal data shows growing interest in its EV range, as consumers increasingly compare fuel costs with the potential savings from charging and lower maintenance.

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“Fuel price increases may start the conversation, but they are not the full story,” says Grant Locke, MD of Volvo Car South Africa.

“When you look at the total cost of ownership, the flexibility and the advancements in battery technology, electric vehicles begin to make a compelling case on their own,” he adds.

EVs typically have fewer moving parts than internal combustion engine vehicles, which can reduce maintenance requirements and extend service intervals, according to Volvo.

Battery durability has also improved, with most manufacturers offering warranties of up to eight years or 160 000 kilometres. Cost comparisons remain central to the shift.

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Charging a 50kWh battery using a public fast charger can cost about R400, delivering roughly 250 to 350 kilometres of range.

“By contrast, charging at home during off-peak periods could cost closer to R175, depending on electricity tariffs,” says Volvo in a statement.

“A driver travelling about 60 kilometres per weekday could spend between R750 and R1 000 per month on energy, based on typical consumption and electricity costs,” it points out.

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“The ability to charge at home fundamentally changes the economics of driving,” says Locke.

“Whether it is overnight charging on lower tariffs or making use of solar power, drivers have far more control over their monthly mobility costs.”

Fuel price hikes, following the escalation in the Middle East conflict, also have broader economic implications.

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With more than 80% of goods in South Africa transported by road, higher diesel costs feed into food and retail prices, placing additional pressure on household budgets.

Against this backdrop, Volvo says EVs are increasingly being considered as a hedge against fuel price volatility, although adoption remains constrained by high upfront vehicle costs and limited charging infrastructure.

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The group adds that as consumers better understand total ownership costs, the shift towards electric vehicles is likely to be driven less by fuel price spikes and more by long-term affordability considerations.

“As more South Africans begin to understand these dynamics, the shift becomes less about reacting to fuel prices and more about making a longer-term mobility decision,” Locke reiterates.

* Likho Mbuka is a Moneyweb intern. 

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