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

This industry brief by GreenCape examines the 'Electric-vehicles-as-a-service' (EVaaS) model as a strategy to accelerate the transition of commercial fleets, specifically light delivery vehicles (LDVs), to electric vehicles (EVs) in South Africa. It identifies key financial and operational barriers to EV adoption and proposes a bundled subscription model to mitigate high upfront costs and infrastructure requirements.

• The South African EV market is currently nascent, characterized by low penetration and three primary barriers: high upfront capital costs for vehicles, high upfront costs for charging infrastructure, and a lack of domestic services and support. Additionally, grid instability caused by loadshedding further limits market growth.
• Electrification of light delivery vehicles (LDVs) represents the second largest market opportunity for EVs in South Africa, following the private passenger vehicle market. There are currently 2,670,338 LDVs in the country.
• The EVaaS model is a bundled monthly subscription that includes the vehicle, charging infrastructure installation, telematics, fleet management, and maintenance. This model aims to remove the high initial purchase price and infrastructure costs, making the transition lower risk for fleet managers.
• A theoretical cost-benefit analysis for a fleet of 50 panel vans over seven years indicates that an EVaaS subscription is viable if priced at a maximum of R16,000 per vehicle per month compared to internal combustion engine (ICE) equivalents. If priced below R12,000 per month, it becomes more affordable than the outright purchase and operation of electric panel vans.
• Everlectric, a South African EVaaS start-up, has deployed 41 electric SAIC panel vans for Woolworths and DSV. Operational data shows that electric panel vans cost approximately 40c/km to operate, compared to roughly R2/km for ICE panel vans, with an estimated annual saving of 400 tonnes of direct tailpipe CO2 emissions.
• EV financing in South Africa is hindered by a lack of data on the long-term residual value of EVs. Consequently, commercial banks often set the residual value of leased electric commercial vehicles at 0% after five years, which increases interest rates and the total cost of ownership for EVaaS providers.

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} }