Capital Equipment News’ Juanita Pienaar spoke with Anton Falck, Vice President of Hino at Toyota South Africa Motors; Avinash Singh, Director Sales & Marketing – EV & Hydrogen Trucks, South Africa Business Unit, SANY Group; and Olaf Petersen, Vice President: Sales and Marketing at Daimler Truck Southern Africa (DTSA) about the total cost of ownership (TCO) of electric trucks in South Africa.
A shifting equation in road transport
The electrification of commercial fleets is no longer a distant future. While diesel remains dominant in South Africa’s transport sector, global momentum and local trials are demonstrating that electric and hybrid trucks can deliver measurable long-term savings. The challenge lies not only in understanding the upfront costs but also in accurately assessing total cost of ownership – a calculation that weighs acquisition, energy, maintenance, downtime, resale, and infrastructure.
As Olaf Petersen of DTSA puts it, “While electric trucks may have higher initial costs, they offer lower operating expenses over time due to reduced energy costs. The conversation doesn’t stop at the purchase of the truck. We emphasise the Total Cost of Ownership as a key value proposition.”
Understanding the cost breakdown
For Hino’s Anton Falck, the TCO conversation starts with realism. “All the normal TCO cost elements for commercial vehicles still apply,” he explains, “however, some are affected in a more positive way due to the new technology systems included in electric and hybrid models.”
He points out that upfront purchase costs are usually higher because of the advanced drivetrains and control systems required for these vehicles. Maintenance, however, tends to be lower since electric trucks have fewer moving parts. Even so, he cautions that the lack of a well-developed aftersales network in South Africa could add complexity, with limited service options and longer commutes to reach workshops.
Energy is another crucial factor. Falck notes that electricity can deliver a cheaper cost per kilometre than diesel, particularly if the source is solar power. He adds that the capital investment in solar infrastructure can be balanced out by using it for other electricity needs as well.
When it comes to downtime, electric trucks spend less time in the workshop for maintenance, but charging can create longer periods of inactivity if not carefully managed. Falck stresses that strategic planning of charging schedules is essential to avoid unnecessary idle time and maximise vehicle productivity.
Industry leaders see TCO advantages
For SANY’s Avinash Singh, the equation is already tipping clearly in favour of electric trucks. “Our EV trucks have demonstrated up to 70% lower TCO in mining side-tipper applications (56T – 80T), with diesel savings in excess of R1 million per truck per year. This results in a break-even period of under 18 months compared to equivalent diesel models.”
Singh stresses that electricity’s lower cost per kilometre, coupled with regenerative braking and fewer moving parts, gives EVs a significant edge. “We are seeing real world diesel savings greater than 70%. This is not counting the savings from diesel theft and contamination issues, or the cost of diesel truck idle times, which paint an even better picture for EV trucks.”
Overcoming barriers
Despite the compelling case, challenges remain. Petersen points out that infrastructure is a decisive factor: “The success of battery-electric trucks depends on a multiplication of three factors: product availability, infrastructure, and affordability. If the value of any one of these factors is zero, the entire equation equals zero.”
DTSA has focused on customer trials and flexible acquisition models, including leases and “truck-as-a-service” solutions. “We actively engage with stakeholders to advocate for supportive policies and investment in charging networks,” Petersen adds, underlining the importance of government incentives and regulatory shifts.
Falck concurs that policy plays a central role: “Policy shifts where consideration is given to reduced import duties and manufacturing incentives on EVs could lower TCO. The growth of private charging infrastructure remains essential for commercial EVs, especially for long-haul routes.”
Customer success stories
Hino’s hybrid programme in South Africa provides tangible evidence. The first three Hino 300 Hybrids introduced in 2023 were placed with Namlog Logistics for parts delivery out of Toyota Africa’s Ekurhuleni centre. “A back-to-back comparison between a Hino 300 Hybrid and a normal 300-Series diesel over 100–200 km trips in Gauteng showed a saving of about 20% in favour of the Hybrid,” says Falck.
Drivers also reported seamless performance: “There was no difference between the two trucks in terms of driving them.” Moreover, the dual drivetrain doubled service intervals, creating a 50% saving on maintenance cost per kilometre.
SANY has had a similar market reception. “The capital cost of our EV truck tractor is only slightly higher than the equivalent diesel truck,” Singh notes. “Our TCO offers a payback period of around 18 months which has been very well received by the local market. It makes a diesel truck in the same application totally uncompetitive to run.” One recent example is a landmark deal with Sekhukhune Logistics, where SANY supplied 30 units – further proof of strong customer confidence in both the performance and financial value of the technology.
Addressing misconceptions
Across all brands, misconceptions persist. Falck observes that many fleet operators still expect EVs to have “a very similar purchase price to the equivalent ICE unit and zero maintenance cost,” both of which are inaccurate.
Singh highlights another misconception: “The narrative in South Africa has been that EV trucks require a ‘green premium’ of around four to five times the cost. This is not the case with SANY. Thanks to our intelligent manufacturing facilities, we can manufacture an EV truck in around six minutes which gives us a cost advantage that allows us to bring this technology to market at a diesel-beating TCO.”
Petersen adds that range anxiety and charging logistics initially worried drivers, but trial feedback has been positive: “Customers reported that the range exceeded expectations, charging – when properly planned – did not disrupt operations, and the instant torque and regenerative braking of electric trucks were well received.”
The rise of hydrogen
Battery-electric is the clear leader today, but hydrogen is already on the horizon. Singh explains: “Hydrogen technology is promising for long-haul applications, but in South Africa, the cost of hydrogen production and infrastructure is still high. Today, battery-electric offers the most compelling TCO advantage, while hydrogen will become more competitive as green hydrogen production scales.”
Hino, too, is pursuing a multi-powertrain strategy globally, with hydrogen, hybrid, and battery-electric solutions in development.
Next steps for the industry
Looking five to ten years forward, Singh sees battery costs continuing to decline while diesel prices rise. “EV adoption will accelerate. Hydrogen will also gain traction as infrastructure develops, but battery-electric will dominate in the near term.”
Falck advises fleet operators to stay pragmatic: “Pilot a few units first. Urban routes may favour hybrids now, while longer routes on EVs may need to await infrastructure improvements. Consider long-term TCO and not just the list price.”
For Petersen, the future hinges on collaboration. “Infrastructure development cannot be the responsibility of a single party. It requires cooperation between government, fleet operators, utilities, and OEMs.”
Electric trucks are no longer experimental in South Africa; they are proving their worth in controlled applications, particularly in urban deliveries and mining operations. While infrastructure, upfront costs, and resale uncertainties remain hurdles, the real-world TCO data is building a compelling case for adoption.
As Falck notes, diesel will remain part of the mix for some time, but the industry is already adjusting to a new era. With hybrids, battery-electric, and hydrogen technologies evolving rapidly, the question for fleet operators is not whether electrification makes sense – but when.