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As South Africans warm to electric mobility, Absa and BYD have partnered on a new finance product to make the switch to cleaner vehicles more affordable.The agreement expands a partnership launched in 2025, broadening it from vehicle finance to a full-service alliance under which Absa will provide wholesale finance for BYD’s dealer network, vehicle finance for customers and insurance products.The move positions Absa as a full-service financier across BYD’s 52 dealerships nationwide, with that number expected to grow to 80 by year end. New buyers will also gain access to launch promotions, including a reduced interest rate for the first 1,000 customers, depreciating instalments, a guaranteed future value option and a 20% insurance discount.“The growth we have seen in our own new energy vehicle finance portfolio over recent years suggests consumer attitudes are changing,” said Charl Potgieter, managing executive for Absa Vehicle and Asset Finance.“While affordability and infrastructure are still important factors, there is growing acceptance of electric mobility, and extending our co-operation with BYD allows us to continue supporting customers as the market develops,” he added.The expansion comes as new energy vehicle sales in South Africa surge. Data shows sales rose 78.8% between January and May 2026 compared to the same period last year, with battery electric vehicle sales up 193% and plug-in hybrids up 681%.BYD is currently South Africa’s second best-selling new energy vehicle brand, with 2,011 units sold so far in 2026. Globally, BYD has sold more than 1.8-million new energy vehicles in the first half of 2026.New energy vehicles still account for a small share of South Africa’s overall vehicle market. The Automotive Business Council (naamsa) reported that the country’s new vehicle market reached 315,303 units in the first half of 2026, a 12.9% increase on the same period last year.Potgieter said the figures suggest the market has reached a turning point, with consumers increasingly willing to adopt electric vehicles as cleaner technologies reshape mobility globally and locally.“This is a partnership with tremendous potential and reflects a shift in how Africa connects to global innovation and growth,” said Kenny Fihla, CEO of Absa, who framed the deal around two broader trends: deepening economic ties between Africa and China, and a global shift toward cleaner mobility.China has remained Africa’s largest trading partner for 16 consecutive years, with bilateral trade reaching a record $348bn in 2025, according to China’s State Council.“South Africa is an important market for BYD, and the pace of development we are seeing in the local new energy vehicle sector is encouraging,” said Steve Chang, MD of BYD Auto South Africa.Chang said the deal aims to help build the finance and dealer infrastructure needed to give customers a more practical way into the BYD range.“The market needs a finance product that recognises how new energy vehicles are different,” Chang noted. “The challenge is no longer only about whether the vehicles are ready. The challenge is whether the ownership ecosystem is ready. That is why this partnership matters.“Extending our co-operation with Absa allows us to support customers, dealers and businesses with the finance solutions needed to make new energy mobility more accessible and scalable,” he said.Absa said the partnership could also support BYD’s expansion beyond South Africa by developing financial solutions in markets where the Chinese manufacturer already operates or plans to expand. The initiative aligns with the bank’s pan-African strategy. Absa has operations in 14 African countries, including banking licences in 11 markets.Business Times
