Absa and Chinese electric vehicle manufacturer BYD have signed a partnership agreement to expand green vehicle finance solutions in South Africa, targeting both retail customers and motor dealers. The move follows increased demand for new energy vehicles (NEVs) amid rising sustainability concerns.
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The deal was formalised at BYD’s offices in Sandton, where representatives from both organisations outlined plans to establish a full-scale green vehicle finance ecosystem.
Full-service financing for EV rollout
Under the agreement, Absa will offer a suite of banking and financial services to BYD dealers and customers, including OEM and dealer wholesale finance, vehicle finance, insurance, and related value-added services.
Absa currently works with 15 dealerships that stock BYD vehicles across South Africa.
Charl Potgieter, managing executive for Absa Vehicle and Asset Finance, said the partnership aligns with the bank’s goal of reaching carbon neutrality by 2050 and will help grow its sustainable finance portfolio.
“We recognise the growing demand for energy-efficient mobility solutions,” Potgieter said.
Market growth and affordability still a challenge
According to Naamsa, NEV sales in South Africa doubled in 2024 year on year, with further growth recorded in the first quarter of 2025.
However, affordability and infrastructure remain obstacles to mass adoption.
Absa’s NEV finance portfolio, comprising both hybrid and electric vehicles, has seen growth off a low base in recent years, reflecting a gradual shift in consumer sentiment.
BYD targets wider reach and lower entry point
BYD, which sold over 4.2 million NEVs globally in 2024, offers vehicles at lower price points than many competitors.
Its models include features such as vehicle-to-load functionality, which allows owners to power household devices from their cars.
Steve Chang, general manager of BYD South Africa, said the partnership was based on three core values: affordability, accessibility and sustainability.
“We’re introducing models at more competitive prices, expanding through Absa’s network, and aiming to reduce emissions with every sale,” he said.
Part of broader green strategy
Absa said the partnership complements its broader green finance strategy, which includes backing Africa’s largest standalone battery facility.
The bank recently met its R100bn sustainable finance target a year ahead of schedule and aims to continue scaling up support for low-carbon initiatives.
