Toyota and Volkswagen Launch First Electric Cars in South Africa: Potential Pricing Revelations

Toyota and Volkswagen could jolt South Africa’s electric vehicle (EV) market in 2026 when they launch their first fully electric cars in the country.

Toyota South Africa CEO Andrew Kirby recently revealed that the company will launch three electric cars in the country in early 2026.

Volkswagen South Africa has trialled several EVs in South Africa in recent years, and it will start selling its VW ID.4 SUV locally in 2026.

Aside from their established reputation and track record as the country’s two best-selling car brands, the automakers could have another edge over current EV sellers — price.

While numerous new EVs have launched in South Africa for under R1 million in the past two years, these cars are from brands with no local vehicle manufacturing operations.

While these models come from China, where production costs are low, they cost substantially more locally than in their home market, due to heavy import fees.

The most affordable option currently available is the BYD Dolphin, which is priced from R539,990. In China, the entry-level model costs 99,800 Chinese yuan, which works out to R245,505.

The big mark-up is primarily due to a 25% import duty on all vehicle imports to South Africa — apart from an 18% reduced duty on petrol and diesel cars from the European Union.

The 25% duty adds about R61,000 to the Dolphin’s landing cost. 15% VAT is also applied to the retail price plus duty, with a mark-up of 10%, adding roughly another R50,000.

Lastly, all imported cars are subject to a sliding-scale the value tax on luxury goods that has not been adjusted in three decades. The value can vary from low single-digit percentages to 30%.

In the Dolphin’s case, the the value is 5.14%. In total, the taxes add about R124,635 to the EV’s landing cost, as summarised below.

Chinese retail price excluding taxes	99,800 yuan (R245,505)
Import duty	R61,376
15% VAT on price plus duty with 10% mark-up	R50,635
Ad valorem tax (5.14%)	R12,624
Landing price in South Africa before shipping and insurance	R370,140

Edge for local manufacturers

Toyota Urban Cruiser electric

Considering that Chinese and Indian cars are already selling well due to competitive pricing, adjusting these import duties to make EVs more affordable could devastate local manufacturing.

However, consumers could see affordable options from local automakers, as these companies have accumulated billions of rands in import duty credits.

South Africa’s government rewards companies that produce a minimum vehicle threshold annually with Production Rebate Certificates (PRC).

If the manufacturer has enough credits, PRCs can be used to reduce import duties on vehicles to as low as 0%. This would substantially impact the cost of importing an EV.

If BYD made cars in South Africa and had sufficient PRCs, it could reduce the Dolphin’s landing price by over R92,535.

The only local vehicle manufacturers that currently import EVs for sale in South Africa are BMW and Mercedes-Benz, which primarily cater to the high-end market.

Toyota and Volkswagen offer a much wider range of products, including more affordable electric cars. By leveraging import duty credits, they could sell several models for well under R1 million.

While Kirby did not specify which models Toyota would be rolling out locally, Toyota’s first fully-electric car — the bZ4X — has been confirmed for a local introduction.

Another model that could be a popular option locally, considering South Africa’s love for crossovers, is the electrified Urban Cruiser, which is being built in Europe.

Similar to Toyota’s petrol-powered Urban Cruiser, the electric model shares a platform with a Suzuki model. In this case, the Urban Cruiser is based on the eVitara.

In Germany, the electric Urban Cruiser starts at €29,990 (R614,868) for a 106kW single-motor model with a 49kWh lithium-iron phosphate battery (LiFePO4) supporting roughly 300km range.

Subtracting Germany’s 19% VAT from that figure drops the taxable amount to R516,696. With the regular 25% duty, the total landing price would be about R816,513, without shipping.

If Toyota South Africa reduced the duty to 0%, the total landing cost of the electric Urban Cruiser would be R666,025 — a reduction of R150,000.

Local carmakers will also benefit from a 150% tax deduction on the cost of certain parts and equipment used in the production of EVs and hydrogen-powered vehicles starting 1 March 2026.

This incentive could accelerate local production of EVs and make them substantially more affordable over the coming years.

What factors might influence the actual pricing of the Toyota bZ4X and Volkswagen ID.4 in South Africa compared to current estimates?

The Electric Revolution Arrives: A South African First

South Africa is poised to enter a new era of motoring with the official launch of the first fully electric vehicles (EVs) from automotive giants Toyota and Volkswagen. This marks a important step towards sustainable transportation in a country heavily reliant on fossil fuels. While details are still emerging, early indications suggest competitive pricing strategies aimed at attracting early adopters and building market share in the burgeoning electric vehicle market South Africa.

Volkswagen’s ID.4: Leading the Charge

volkswagen South Africa has confirmed the arrival of the ID.4, its globally successful all-electric SUV. The ID.4 is expected to be a key player in the EV SUV segment.

Expected Range: Approximately 400-500km (WLTP cycle), making it suitable for both city driving and longer journeys.

Battery Capacity: Around 77 kWh, offering a good balance between range and charging time.

Potential Pricing: Industry analysts predict a starting price in the region of R750,000 – R850,000, positioning it competitively against premium petrol-powered SUVs. This price point is crucial for affordable electric cars South Africa.

Charging Infrastructure: VW has partnered with GridCars to expand the charging network, offering access to over 200 charging stations nationwide. This addresses a key concern for potential EV buyers in south Africa – range anxiety.

Toyota’s bZ4X: A New Contender

Toyota,known for its hybrid technology,is entering the all-electric arena with the bZ4X. This SUV, developed in collaboration with Subaru, represents Toyota’s commitment to a fully electrified future.

Expected Range: Similar to the ID.4, the bZ4X is anticipated to offer a range of 400-450km (WLTP cycle).

Battery Capacity: Available with either a 64 kWh or 71.4 kWh battery pack, offering flexibility for different driving needs.

Potential Pricing: Estimates place the bZ4X in a similar price bracket to the ID.4, perhaps starting around R780,000 – R880,000. This positions Toyota as a serious competitor in the electric car price comparison landscape.

Toyota’s Hybrid Heritage: Toyota’s extensive experiance with hybrid vehicles provides a strong foundation for its EV strategy, ensuring reliability and efficiency.

Government Incentives and the Future of EVs in South Africa

The South African government is actively exploring incentives to promote the adoption of electric vehicles. Currently, these are limited, but discussions are underway regarding:

1. Reduced Import Duties: Lowering import duties on EVs could considerably reduce their purchase price.
2. Tax Breaks: Offering tax incentives for EV ownership could make them more accessible to a wider range of consumers.
3. Investment in Charging Infrastructure: Government funding for the expansion of the charging network is crucial for alleviating range anxiety and encouraging EV adoption.

Charging Options: Home, Work, and public Networks

Understanding the charging options available is vital for prospective EV owners.

Home Charging: Installing a Level 2 charger at home is the most convenient option,allowing for overnight charging. Costs vary depending on installation requirements.

Workplace Charging: Employers are increasingly offering charging facilities as an employee benefit.

Public Charging Networks: Companies like GridCars, ChargeUp, and EVN Africa are expanding their networks of public charging stations across the country. EV charging stations South Africa are becoming more prevalent, but availability remains a key consideration.

the Impact on the South African Automotive Industry

The arrival of these EVs signals a broader shift within the South African automotive industry.Local manufacturers are under pressure to adapt and invest in electric vehicle production.This could lead to:

Job Creation: New opportunities in EV manufacturing, maintenance, and charging infrastructure development.

Technological Advancement: Increased investment in research and development of electric vehicle technologies.

Reduced Carbon Emissions: A significant contribution to South Africa’s efforts to reduce its carbon footprint and combat climate change.

Real-World Considerations: Range Anxiety and Battery Life

While the advertised range of EVs is notable, real-world range can be affected by factors such as:

Driving Style: Aggressive acceleration and high speeds reduce range.

Weather Conditions: Cold weather can significantly impact battery performance.

Terrain: Driving uphill consumes more energy.

Load: Carrying heavy loads reduces range.

Battery life is another vital consideration. EV batteries typically have a lifespan of 8-10 years, but proper maintenance and charging habits can extend their lifespan. EV battery replacement cost is a factor to consider, although prices are expected to decline as technology advances.

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* EV battery replacement cost