Electric-vehicles-as-a-service A viable fleet transition model in South Africa

The document argues that EVaaS—a bundled subscription model covering vehicles, charging infrastructure, and maintenance—can make electric vehicle (EV) adoption more attractive for South African fleet managers by removing high upfront capital costs. Using a theoretical case of 50 panel vans, it demonstrates that EVaaS is financially viable compared to internal combustion engine (ICE) vehicles if monthly subscriptions are priced at or below R16,000 per vehicle. It highlights a real-world application by Everlectric with Woolworths and DSV, noting significant operational cost reductions and CO2 savings, while identifying a lack of accurate residual value data from banks as a primary financial hurdle for EVaaS providers.

• Fleet managers in South Africa face three primary barriers when transitioning from internal combustion engine (ICE) vehicles to electric vehicles (EVs): the high upfront capital cost of the vehicles, the upfront cost of charging infrastructure, and a lack of local services and support.
• The EVaaS model addresses these barriers by bundling the vehicle, charging infrastructure installation, telematics, fleet management, and maintenance into a single monthly subscription, thereby removing the initial capital expenditure (capex) requirement.
• A theoretical cost-benefit analysis for a fleet of 50 panel vans indicates that an EVaaS model is more business-viable than an ICE fleet if the subscription is priced at a maximum of R16,000 per vehicle per month. If priced below R12,000 per month, it becomes more affordable than the outright purchase and operation of electric panel vans over seven years.
• Real-world operational data from Everlectric's deployment of 41 electric SAIC panel vans for Woolworths and DSV shows that electric vans cost approximately 40c/km to operate, compared to roughly R2/km for ICE panel vans. This deployment is estimated to save 400 tonnes of direct tailpipe CO2 emissions annually.
• A significant challenge for EVaaS providers in South Africa is the lack of market data on the long-term residual value of EVs, leading commercial banks to set residual values at 0% after five years, which increases interest rates and the total cost of ownership.

APA

GreenCape (n.d.). Electric-vehicles-as-a-service A viable fleet transition model in South Africa. https://greencape.co.za/wp-content/uploads/2023/06/Smart-Mobility_Electric-vehicles-as-a-service-–-A-viable-fleet-transition-model-in-South-Africa.pdf

Chicago

GreenCape. Electric-vehicles-as-a-service A viable fleet transition model in South Africa. n.d. https://greencape.co.za/wp-content/uploads/2023/06/Smart-Mobility_Electric-vehicles-as-a-service-–-A-viable-fleet-transition-model-in-South-Africa.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Electric-vehicles-as-a-service A viable fleet transition model in South Africa |url=https://greencape.co.za/wp-content/uploads/2023/06/Smart-Mobility_Electric-vehicles-as-a-service-–-A-viable-fleet-transition-model-in-South-Africa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencapendelectricvehiclesasaservice, author = {{GreenCape}}, title = {{Electric-vehicles-as-a-service A viable fleet transition model in South Africa}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2023/06/Smart-Mobility_Electric-vehicles-as-a-service-–-A-viable-fleet-transition-model-in-South-Africa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }