South Africa Electric Two-Wheeler Market Assessment, By Vehicle Type [Motorcycle, Scooter/Mopeds], By Battery Type [Lead Acid, Lithium-ion, NiMH], By Distribution Channel [Online, Offline], By Battery Voltage [Up to 24V, 25V-60V, 60V and Above], By Applic

South Africa Electric Two-Wheeler Market Assessment, By Vehicle Type [Motorcycle, Scooter/Mopeds], By Battery Type [Lead Acid, Lithium-ion, NiMH], By Distribution Channel [Online, Offline], By Battery Voltage [Up to 24V, 25V-60V, 60V and Above], By Application [Commercial, Personal], By Region, Opportunities and Forecast, 2017-2031F

South Africa electric two-wheeler market is expected to witness a CAGR of 25.31% between 2024-2031 to reach USD 384.74 million in 2031 from USD 62.88 million in 2023. The market has observed significant growth in recent years and is expected to maintain decent growth in the coming years owing to easy affordability of electric two-wheelers, rising fuel prices, increasing government incentives, and growing end-user awareness of sustainable transportation choices. A rapid shift towards electric two-wheelers (E2Ws), increased production of E2Ws, rising recognition of their cost-effectiveness, and constant adoption of sustainable mobility solutions are projected to drive the South Africa electric two-wheeler market growth. Continuous technological advancements in electric two-wheelers and the availability of financing options are anticipated to propel the South Africa electric two-wheeler market demand. In addition, the government of South Africa is increasing its investment in expanding EV charging infrastructure and improving transportation infrastructure and policies. Also, the government is offering different tax benefits and subsidies on the purchase and sale of electric vehicles to promote the adoption of E2W and accomplish the target of zero-carbon emissions.

For instance, companies in the market are efficiently advancing the newly launched models to help the government accomplish the goal of zero carbon emissions. Companies also focus on reducing the cost of E2W and improving performance, coupled with requiring less maintenance. In addition, companies in the South African electric two-wheeler market are announcing collaborations and the launch of advanced electric two-wheelers to address safety concerns and the growing requirement for eco-friendly transportation alternatives.

For instance, in November 2023, Vmoto Limited announced the sale of a new range of electric two-wheelers in South Africa to address the rising demand for E2Ws and offer an overall better driving experience.

Advancements in EV Battery Technology Drive Market Growth

Advancements in EV battery technology improve EV performance, eliminate dependence on scarce materials, and drive down maintenance costs and the demand for electric two-wheelers in South Africa. Also, innovations in EV batteries accelerate the E2W demand as batteries enhance EV safety features, longer driving ranges, and increase the range of electric vehicles. Companies in the market are launching new and advanced batteries, including solid-state batteries, lithium iron phosphate batteries, and others, to deliver faster charging and reduce carbon emissions. Key participants also plan to establish an EV battery manufacturing facility to embrace innovations and boost battery production to cater to rising demand from EV owners.

For instance, in January 2024, Afrivolt, a South African energy company, announced the opening of a lithium-ion cell gigafactory in South Africa, able to generate cathodes, anodes, and lithium-ion batteries for stationary storage applications for electric vehicles.

Investment in Manufacturing Facilities for E2W Drives Market Demand

Companies in the South Africa electric two-wheeler markets are investing significantly in manufacturing facilities to produce E2Ws and address the rising demand for electric vehicles, which is coupled with contributing to zero-carbon emissions. The government in South Africa is compelling companies to invest in the production of electric two-wheelers to accomplish the goal of net zero carbon emissions. The significant surge in growing awareness concerning carbon emissions among end users and the increase in fuel prices, coupled with the negative impact of traditional vehicles on the environment, are projected to propel the demand for electric vehicles, which further encourages companies to produce electric vehicles. Therefore, companies in South Africa are planning to establish manufacturing facilities for E2Ws to address the growing demand for electric vehicles and dominate the largest market share.

For instance, in July 2022, Rheinmetall Denel Munition (Pty) Ltd. announced the production of its electric vehicles, including buses, bikes, and scooters, in its manufacturing facility to demonstrate its sense of responsibility towards the environment and society.

Government Regulations and Environment Sustainable Standards Drive Market Growth

The government in South Africa is efficiently spreading awareness concerning the negative impact of fuel-powered vehicles and carbon emissions, which is expected to drive market growth. The government is actively making policies to reduce the adoption of fuel-powered vehicles and offering subsidies and incentives to foster the production and adoption rate of E2Ws. Government organizations are significantly promoting the production, advancement, and adoption of electrified vehicles. In addition, companies are motivated to produce E2Ws owing to the government’s supportive policies and announced tax benefits on the production and sale of electric vehicles. Furthermore, a rising number of initiatives taken by legal organizations and authorities of South Africa, comprising rebates, subsidies and grants, non-financial benefits, and taxes on the purchase of E2Ws, are expected to drive the adoption rate of E2W in the forecast period. The Climate Transparency Report (2021) showed that 12% of South Africa's greenhouse gas (GHG) emissions from fuel combustion come from the transport sector.

For instance, the country set an objective to cut transportation-related GHG emissions by 5% by 2050, as defined in the South African Green Transport Strategy 2018. Electric Vehicles (EVs) play an essential role in decarbonizing the transport sector by reducing direct tailpipe emissions. Moving towards zero-emission vehicles could substantially impact addressing South Africa’s GHG emissions reduction objective.

Scooters Dominate the Largest South Africa Electric Two-Wheeler Market Share

Scooters dominate the market share in South Africa due to cost-effectiveness, rising awareness concerning eco-friendly modes of transportation, and increasing per capita income. The South Africa scooter market demand is rising as these have less impact on the environment, reduce reliance on imported oil from other countries and produce zero carbon emissions. Not only this, but electric scooters also offer a sustainable alternative to traditional petrol-powered scooters, help to conserve natural resources and reduce the negative effects of climate change, surging the adoption rate of electric scooters. In addition, companies are launching electric scooters in the market to address the rising demand and provide a comfortable ride.

For instance, in November 2023, Uber Technologies, Inc. announced the launch of electric scooters to become a zero-emissions company by 2040 and expand its product range.

Lithium-ion Battery is Expected to Dominate the Market

The lithium-ion battery is estimated to register the largest market share owing to ground-breaking advancements in battery technology. Batteries make up a considerable part of an electric vehicle's weight, so decreasing their weight can particularly affect the vehicle's total weight. Recent progress in battery technology, specifically with the introduction of solid-state lithium-ion batteries, holds promise for efficiently lowering the weight of EV batteries, driving the growth of lithium-ion batteries in the forecast period. Makers of E2Ws prefer lithium-ion batteries as these batteries have superior energy density, longer life, and lighter weight coupled with more eco-friendliness than the others. Companies are building an ecosystem to develop supply chains for lithium-ion batteries, strengthening electric vehicle (EV) production.

For instance, in May 2024, the Industrial Development Corporation of South Africa and the ARCH Sustainable Resources Fund provided USD 26 million in funding to Giyani Metals Corp. to supply low-carbon, high-purity battery-grade manganese for the EV industry in South Africa.

Future Market Scenario (2024-2031F)

The South Africa electric two-wheeler market is expected to rise owing to expanding charging infrastructure and an increased focus on environmental sustainability.

Rising fuel prices and increasing requirements for energy-efficient commuting choices are estimated to boost the South Africa electric two-wheeler market demand in the forecast period.

Integration of lightweight components and implementation of advanced and innovative technologies are projected to drive the demand for electric two-wheelers in South Africa.

A rapid surge in investment by leading manufacturers in different research and development activities to improve the performance and a variety of electric scooters and motorcycles to address different market requirements, propelling the market growth.

Key Players Landscape and Outlook

Companies in the market are efficiently investing in different research and development activities to address the rising demand for E2Ws and offer better driving experiences to end users. Key participants in the market are introducing advanced E2Ws equipped with safety features that contribute to net zero carbon emissions. In addition, companies are adopting different growth strategies, including joint ventures, amalgamation, collaborations, partnerships, mergers and acquisitions, and others to expand their product portfolio and market presence.

For instance, Scott Corporation SA offers advanced e-bikes equipped with advanced features to address the rising demand for E2Ws in South Africa and expand its market presence.