How
South Africa ' s forecourts can capitalise on the NEV and clean energy transition
INDUSTRY INSIGHT
Fuel retail ' s
EVOLUTION:
How
South Africa ' s forecourts can capitalise on the NEV and clean energy transition
By Karen Keylock, National Retail Services Manager at Nedbank
Commercial Banking
With the global shift towards cleaner fuels and new energy vehicles( NEVs) accelerating, local fuel station operators face both uncertainty and opportunity. While NEVs still represent a small share of South Africa ' s vehicle market, less than 3 %, rapid international developments, regulatory pressure, and consumer demand for greener mobility are reshaping the landscape. To help fuel retailers navigate this transition, Nedbank Commercial Banking recently hosted a series of national seminars unpacking the challenges and, importantly, the new revenue streams emerging in the mobility space.
The global NEV space is evolving rapidly: The European Union is working to phase out combustion engines by 2035 and is shifting focus to autonomous NEVs. China remains dominant, controlling most of the global NEV supply chain and having built battery capacity exceeding global demand by 500 %. But according to the Automotive Business Council, South Africa is lagging for several reasons: Without access to Euro-5 and Euro-6 compliant fuels, South Africa cannot authorise, or legally sell, many modern vehicles. Currently 38 % of petrol and 67 % of diesel are imported, but the Department of Mineral Resources and Energy has committed to making Cleaner Fuel 2 available by 1 July 2027, with indications it may arrive slightly earlier. The South African NEV market is small but growing, dominated by traditional hybrids like the Toyota Corolla Cross and Mercedes-Benz C-Class. Full battery electric vehicle( BEV) sales remain limited due to affordability, which is the biggest barrier to growth in this market: most BEVs are priced over R900 000, yet 74 % of new car sales in South Africa are under R500 000.
Growth in NEVs and charging infrastructure is on the rise – and fuel stations will benefit
More affordable options are coming – with 1 original equipment manufacturer scheduled to launch a sub-R400 000 BEV this year. However, even affordable BEVs face practical challenges. Many consumers – particularly in the lower end of the market – lack solar, inverters, or batteries to charge vehicles at home. In addition, range anxiety persists, even though most BEVs offer over 200 km per charge, and concerns about resale value and long-term performance deter buyers. Another issue for South African NEV sales is that existing public charging infrastructure is limited, poorly maintained, and inconveniently located: A Joburg to
Cape Town EV convoy last year exposed major gaps, with vehicles stranded due to faulty charging stations.
To address these challenges, NAAMSA is engaging with the private sector to build a national charging network of 120 sites, providing accessible, reliable charging along key routes throughout the country. The network will leverage existing fuel stations instead of building new sites, ensuring that drivers can find a charging site within easy travelling distance, which will be public and free to access, without hidden costs. These strategic partnerships with fuel stations are preferable because of their proximity to main national routes and their existing vehiclerefuelling and alternate revenue stream infrastructures.
To reduce the cost of the NEV charging infrastructure build and increase the speed of installation, these sites will initially operate largely through the national electricity grid, supported by renewable energy. Fuel stations are, in fact, ideally suited for solar PV installations because they have sizable areas of roof space over their buildings and forecourts, which are generally located in full sun. So, as increased income streams generated by the new infrastructure boost profits, fuel station owners can increase the renewable energy component of their sites to decrease their reliance on the national grid and thus boost profitability further.
' Mobility ' stations set to replace fuel stations EV charging facilities certainly offer great potential for fuel retailers. It ' s a natural progression for them as it uses their experience and already-expanding forecourt product offerings while providing the highest potential margin. In fact, a recent study on the future of fuel stations in South Africa by commercial real estate company Cushman
& Wakefield | BROLL, indicates that fuel stations will evolve into ' mobility ' stations within the next 5 to 15 years, offering a wider range of energy sources( electricity, natural gas, petrol, diesel, biofuels, and green hydrogen).
As Fuel Connect points out, fuel forecourts offering much more than fuel is nothing new, as far back as the 1960s, fuel stations have incorporated restaurants, convenience stores, car workshops, tyre fitment centres, and even hotels, and fuel stations have always been an important midway destination on long journeys for family holidays. But because recharging an NEV takes significantly more time than filling up the fuel tank of a vehicle with an internal combustion engine, extended services such as pharmacies, laundry services, gyms, and co-working spaces will become more common at these sites. Operators will then become less reliant on income from fuel, as it will account for just 20 % of the forecourt ' s revenue, compared with the 90 % it has contributed historically.
A further consideration is that, going forward, successful retailers won ' t just operate a single site, instead owning between 5 and 10. But managing multiple sites brings complexity – more employees, more systems, more human error. The only real solution? Leveraging smart technology, which prevents fraud, boosts efficiency, and further increases profitability.
It ' s clear that the future of fuel retailing lies beyond the fuel pump. As NEV adoption grows and cleaner fuels become standard, traditional forecourts will evolve. Embracing the opportunities this transition promises, together with smart technology and renewable energy, fuel station operators can future-proof their businesses and thrive in the rapidly changing mobility environment.
WORDS IN ACTION 10 AUGUST 2025