Nissan SA sees great potential in Africa’s electric vehicle market

Nissan South Africa has been at the forefront of the electric vehicle (EV) movement in the country for over a decade, starting with the introduction of the Nissan Leaf. However, despite early efforts to create awareness and drive conversations around EV adoption, the market has faced challenges in gaining momentum. In a recent interview with CNBC Africa, Kabelo Rabotho, Country Director at Nissan SA, discussed the company's EV strategy and plans for the future. One of the major hurdles that Nissan South Africa has encountered in the EV market is the lack of supportive policies, particularly in terms of import duties. Currently, electric vehicles in South Africa face a 25% import duty, significantly higher than the 18% duty imposed on internal combustion engine vehicles. Rabotho highlighted the importance of engaging with the government to address these policy barriers and make EVs more affordable for consumers. Another issue that has posed a challenge for Nissan is the lack of charging infrastructure. When the Nissan Leaf was first introduced, there were limited charging stations available, which created range anxiety among potential buyers. To address this issue, Nissan has been working on expanding the charging network in collaboration with other stakeholders. Despite these challenges, Rabotho remains optimistic about the future of EVs in South Africa. He mentioned that the government's recent white paper on electric vehicles is a positive step towards creating a conducive environment for EV adoption. In addition to the domestic market, Nissan South Africa is also focusing on expanding its EV footprint in key export markets like Europe. As part of the Nissan Next Transformation Strategy, the company has outlined plans to increase the availability of electric vehicles globally. The recent global reveal of the Ariya, Nissan's flagship EV, is a testament to the company's commitment to sustainable mobility. Rabotho emphasized that Nissan is working on introducing a variety of affordable EVs targeted at different market segments to cater to evolving consumer needs. When it comes to the African continent, Rabotho noted that some countries are leading the way in terms of EV policy and infrastructure development. Countries like Kenya and Rwanda have already implemented policies to encourage EV adoption by offering zero import duties on electric vehicles. In contrast, South Africa is still in the early stages of policy discussions around new energy vehicles. Rabotho highlighted the importance of addressing challenges such as infrastructure limitations and power outages to accelerate EV adoption in the region. He suggested exploring renewable energy sources like solar power to support the charging needs of electric vehicles throughout the day. Overall, Nissan South Africa is optimistic about the potential of the EV market in Africa and is committed to overcoming challenges and driving sustainable mobility across the continent.