The ever-rising cost of diesel and petrol makes the possibility of driving to work every day for free sound like a far-fetched dream.
Imagine, if you live in Joburg, the thrill of driving off with your family for a weekend in Durban without having to spend a cent on fuel. And throw in another incentive — free in-car connectivity without the burden of expensive Wi-Fi subscriptions.
Sound like a dream? Well, for a growing number of South Africans this is now a reality. This week Volvo Car SA introduced an exclusive offer to make electric vehicle (EV) ownership more convenient and attractive. It is offering new buyers two years of free public charging, a GridCars wallbox with installation support, and 10GB of Vodacom data a month for three years.
New Volvo EV owners will receive a charging voucher worth R12,000 linked to the GridCars charge card and valid for 24 months. To simplify home charging, it is offering an installation allowance of R7,500 towards a GridCars wallbox.
Will these incentives be a game-changer for EV adoption in SA? While I wouldn’t mind trading my cash-guzzling diesel car for a new EV, affordability remains a major barrier.
Entry-level EVs such as the GWM Haval Ora 03 are priced from about R700,000, compared to less than R200,000 for entry-level petrol cars. With such prices, many car owners and aspiring motorists will not consider EVs affordable.
However, Volvo’s bundled incentives could sway some internal- combustion engine (Ice) car owners, especially those who are tired of rising fuel costs and are eager for a greener alternative.
Volvo’s offer of free data for new buyers is an attractive perk, enhancing the in-car experience with navigation, streaming and over-the-air software updates. With the high cost of mobile data in SA, a three-year data package adds substantial value to the offering.
Volvo’s strategy mirrors successful incentive programmes in other markets. In China, brands such as NIO and Xpeng offer free charging at their proprietary networks and provide free data connectivity for advanced infotainment systems.
I saw this first-hand when I was in Shanghai, China, last year and enjoyed a ride in NIO and Xpeng electric vehicles.
The Chinese government has also rolled out extensive policies to promote EV adoption, including subsidies, tax exemptions and investments in charging infrastructure. A $72.3bn tax incentive package introduced in 2023 has fuelled rapid EV growth in China.
In the US, carmakers and utility companies are using similar incentives. General Motors partnered with Reliant Energy in Texas to offer free night-time charging for Chevrolet EV owners. Mercedes-Benz provides free charging at Electrify America stations for its EQ-series buyers, and includes free data connectivity for its MBUX infotainment system.
These bundled incentives have helped accelerate EV adoption by reducing cost barriers and improving the ownership experience.
The key to Volvo’s SA strategy lies in addressing two major concerns: cost and charging accessibility. Free charging alleviates range anxiety, while free data enhances convenience. These benefits could help SA consumers justify the higher upfront cost of an EV.
SA’s EV market is still in its infancy, but momentum is building. The government is stepping up its efforts to promote EV adoption. In October finance minister Enoch Godongwana announced a new tax allowance effective from March 1 2026, which will allow producers to claim 150% of qualifying investment spending on electric and hydrogen-powered vehicles in the first year.
In addition, there are now at least 47 free public charging stations across the country, including a solar-powered station in Cape Town offering two years of free charging. However, challenges remain. SA has only about 400 public charging stations, compared to 4,000 major brand fuel stations.
The lack of public charging infrastructure remains a significant hurdle for EV uptake, but initiatives such as Volvo’s bundled incentives will help bridge the gap by making charging more accessible.
The SA EV market has a long road ahead before it can compete with traditional Ice vehicles. But Volvo’s move sets a precedent. If other manufacturers follow suit with similar or improved bundled incentives, EV adoption could accelerate significantly.
The combination of free charging, financial incentives and enhanced connectivity creates a compelling value proposition for potential buyers in a high-end segment of the market. Not only does this make EVs more competitive, it promotes a positive ownership experience, encouraging repeat purchases and word-of-mouth advocacy for those who can afford it.
Volvo’s bold initiative could well be the spark needed to ignite SA’s EV revolution for the local market. If executed effectively, bundled incentives such as these could transform EV ownership, making it more accessible and appealing to a broader market.
A future of electric mobility in SA’s high-end market may be closer than we think. There is only one hurdle we need to solve — reliable energy supply from Eskom. If that is sorted, the government's plans to stimulate EV manufacturing and encourage original equipment manufacturers to continue manufacturing vehicles in SA could flourish.
Only then SA will have an EV market that can entice local car makers such as BMW, VW and other international investors to build affordable EVs in SA and provide better bundled incentives.
Let’s hope that when the 150% tax deduction to attract EV and hydrogen vehicle manufacturers is introduced next year, SA will have affordable cars for people to buy.
• Lourie is founder and editor of TechFinancials.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.