Tesla recently opened an office in South Africa, but still needs to create greater awareness of electric vehicles among the population before it’ll begin selling to the public. South Africa’s EV market still has some work to do in order to support the technology, since there are still very few EV models in the country even though the demand for the same is increasing in different parts of the globe.
However, there is hope that by running an awareness campaign, Tesla will be able to entice the general public to embrace this new technology. In this post, we explain the factors that can determine Tesla’s success.
Availability of Charging Infrastructure
For a start, South African Tesla aims to find solid business potential before offering vehicle sales. The issue is that, currently, you can purchase the charging infrastructure but not the cars, until such time when the demand for EVs matches the company’s business expectations. So far, only a single Tesla Model X has been imported to raise awareness about electric vehicles. The model is not yet on sale, but Tesla’s charging infrastructure is available to the customers who want it.
South Africa is experiencing a small demand for electric vehicles compared to other parts of the world. To succeed, Tesla needs to publicise its EV and power infrastructure. It also needs to lobby the government to warm up to the idea of EVS.
Currently, the aim is to develop a market for Tesla’s battery pack. The home battery system can be charged with solar energy, and it’s expected to popularize the introduction of the vehicle in the country.
Electric vehicles are generally more expensive than gas-powered vehicles, and so EVs are likely to have higher car insurance premiums. Car insurance is designed to protect you against the cost of damages that can arise due to issues like accidents, weather events, theft, or other unforeseen incidents.
However, the cost of repairing a pricey vehicle like Tesla’s EV can be high, and this can influence the behavior of potential customers and their perceptions of the car. If the car comes with high premiums, this can impact the demand for it.
The Toyota brand is the most popular on the African continent, and this is one of the main challenges that can be encountered by Tesla in its bid to penetrate the automobile industry in South Africa. Research conducted by comparethemarket.com.au car insurance found that vehicles like the Jeep Wrangler and Toyota Tacoma are very popular, as well as other Toyota models like Corolla, Cherokee, and Yaris. If Toyota introduces a branded electronic vehicle, this can increase competition which can affect Tesla’s performance in the market.
Tesla is a successful brand across the world, and its popularity can also help them spark interest in South Africa once they establish their business. Even used Teslas are in high demand in different countries, which can help the company if the South African government opens a market for second-hand EVs. Currently, used vehicle imports are prohibited in South Africa, and this may also affect Tesla. If potential buyers cannot access affordable second-hand Tesla models, it may be difficult for them to buy costly brand-new cars.
Although electric vehicles have higher upfront costs than gas-powered vehicles, their owners can save a lot of money on operating expenses. When you install a Level 2 charging system in your home, it will cost you about $2,000, and takes about 8 hours to charge your vehicle. However, it’s cheaper to charge your car at home than using commercial charging stations. In South Africa, it seems Tesla has started by addressing the major problem that is likely to influence the behavior of many buyers by selling the charging infrastructure.
The price of gas for combustion engines continues to increase, and this makes electric vehicles cheaper to operate in the long run. Although electricity prices are increasing, EV owners can utilize solar power to charge their cars. Apart from the high cost of installing the charging system, an EV is easy to maintain.
Although Tesla does not intend to sell its electric vehicles in South Africa for the time being, it’s on the right track by creating awareness about the brand among potential buyers. Tesla is popular in parts of the world, and if the company plays its cards well, it has a high chance of success in the South African automobile industry. Once the company addresses the challenges it is likely to face, it can also achieve its goals in this market.
By Staff Writer.