SA Taxi has announced that it plans to trial electric taxis in South Africa, as the industry giant of the country’s minibus taxi segment prepares for future shifts. SA Taxi is a subsidiary of the JSE-listed Transaction Capital, and CEO Terry Kier has said that any shift away from taxis that use fossil fuels will be a “medium- to long-term project”.
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“We will remain an active partner in facilitating the shift to EVs (electric vehicles) in the minibus taxi industry, doing our part to resolve the complexities to the extent we can, given our sphere of influence,” he said. “There is a great deal of interest in electric vehicles, particularly their ability to transform public transport. However, we need to balance this excitement against the complexities our unique South African context presents to the viability of this mode of transport.”
“Firstly, the tax regime and incentives for electric vehicles are not yet conducive for import; an electric taxi will cost around double that of a locally manufactured diesel minibus taxi as things stand. However, government is currently reviewing excise duties on these vehicles, which should reduce import costs in time. As heavier vehicles (due to the weight of batteries), electric taxis also require different towing infrastructure,” Kier said.
“There is an additional weight consideration for road infrastructure itself, considering the wide reach of the minibus taxi industry. Batteries also reduce the number of passengers compared to traditional minibus taxis. Beyond logistical considerations for the vehicles themselves, there are questions about the impact to the fiscus. The minibus taxi industry is a large fuel user and pays tax on every litre bought, which means a large loss of revenue. Also, as we know, electricity costs and supply are major issues in South Africa, so electrifying a fleet of minibus taxis will need to be considered in light of this constraint,” Kier said.
