Exploring factors that will influence the adoption of electrical vehicles by South African customers

Abstract

Global warming is causing unforeseen, uncontrollable – and damaging – weather patterns and the world is seeing increased pressures from numerous stakeholders to force change to preserve the environment for current and future generations. These pressures are directed towards governments, companies and industries, with the objective to reduce carbon emissions. One of the industries that is under the spotlight to implement change is the automotive industry, as tailpipe emissions of internal combustion engine vehicles contribute significantly to the annual global carbon emission output. One possible solution to reduce carbon emissions is to increase the widespread adoption and utilisation of electrical vehicles. Virtually every large traditional vehicle manufacturer has commenced with the development and production of electrical vehicles, and large investments are planned in the nearby future. Vehicle manufacturers, who are solely focusing on producing electrical vehicles, such as Tesla motors and Rivian trucks, have seen tremendous success in the past. Certain countries around the world, including Norway, China, the United States of America and Europe, have seen increased adoptions of electrical vehicles. The objective of this research study is to determine the factors that will increase the adoption rate of electrical vehicles by South African customers. A qualitative research study was employed to determine these factors, and 11 profound themes were identified. These themes are: Trust, insufficient electricity, recharging infrastructure, cost of electrical vehicles, taxation incentives, long travel distances required in South Africa, timeframe, willingness to adopt electrical vehicles, future international supply of electrical vehicles, opportunity to manufacture vehicles in South Africa and the future need for internal combustion vehicle engines. The South African industry has two main sectors, including a manufacturing sector, whereby vehicles are produced locally on behalf of international vehicle manufacturers and these vehicles are exported to a vast number of export markets, with Europe being the largest importer of South African-produced vehicles and a local retail sector where vehicles are sold to final customers. The successful implementation of these identified themes could arguably lead to higher adoption rates of electrical vehicles and the significance to increase the adoption rate would not only be beneficial to the environment, but will arguably benefit the South African automotive industry as a whole, pertaining to the economic benefits associated with exporting vehicles.