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Tuesday, November 6, 2012

Next steps for electric vehicles in SA

This mini is electric, but BMW South Africa is waiting
for a change in taxation on ev's to make its pricing in
South  Africa viable.
South Africa heard this week that government’s 29% duty on electric vehicles was the main reason why electric vehicles like this Mini, as well as more robust load carriers, were not being sold in SA.


At a two-day conference was held to discuss policies for electric vehicles in South Africa on November 6-7 in Auckland Park, Jo’burg.
Participants ranged from Department of Trade and Industry to Honda, BMW and Mini.
General manager for Group Communications at BMW, Guy Kilfoil, spoke on the next step of evolution in Automobility, showcasing the electric mini.
Honda’s director for sales and marketing, Graham Eagle, spoke about trends in Europe and USA and made sales forecasts for electric vehicles, hybrids and plug-in hybrids in SA.
Conference organiser for Classic Events, Nigel Brown said while the gathering encouraged discussion between the various role players, which include industry, city planners and entrepreneurs, the main aim was to get direction from the Trade and Industry’s chief director on automotive matters, Mkhululi Mlota.
One of the entrepreneurs, Stuart Elliot of Cape-based Melex Electrovehicles, said a 29% duty on electric vehicles like golf carts, scooters and buses, was one of the main stumbling blocks to growth in the electric vehicle industry.
Eliot told The Witness that, based on his experience in China, South Africans could use two types of electric vehicles – cheaper but robust load carriers for farm or factory use, and expensive cars like Nissan’s Leaf, which retails elsewhere in the world for some R450 000.
Elliot said Melex had a road-legal, electric half-ton bakkie which had already proven to be 54% cheaper to run and maintain than a Corsa Bakkie and cost from R70 000.
He said Melex had also entered into a joint-venture with the University of the Western Cape to develop power systems to use in light commercial applications, like staff buses and last-mile-delivery bakkies. They plan to announce the results of this joint venture next month and to begin manufacture commercially early next year.
While Eliot did not want to say to much ahead of next month’s announcement, he could reveal to The Witness that the SA-made power systems had a range of 120 km on their test unit, with a solar roof that increased this range by 18 km.
He said the local demand was to ferry loads over short distances. “I don’t believe range beyond 100 km is much of an issue with our target market, as we are looking at local deliveries, campuses, take-aways, chemists, etc.
“We have two units running in Gauteng, driving 20 km per day to ferry office workers from a Gautrain Station to a head office. The [AA rates] per kilometre - including charging, extended warranty, on site maintenance, insurance and licensing - is R4,01 per km,” Eliot said. He said AA rates for a 2.4 diesel taxi or bakkie was R9,07/km.
He said the company have already sold more than a dozen 14-seat shuttle busses which can carry 1,5 tons and are currently used to shuttle staff on factory premises.
“These are not yet road legal and we also need an EV vehicle framework in SA that allows low speed vehicles on certain roads, he said. He added a large number of customer are for such feeder vehicles, which were 60% cheaper to buy and run than similar vehicles with internal combustion engines, which costs included charging, maintenance and insurance.