Electric vehicles outperform hybrids on efficiency and cost
As South Africa forges ahead in the automotive landscape, a notable divide has emerged in the growing realm of new-energy vehicles.
- New Energy Vehicles
- 8 December 2025
The automotive chip industry is set for remarkable expansion, with valuations expected to climb from $77.42 billion this year to $133.05 billion by the decade's end, according to research from MarketsandMarkets.
The 11.4% annual growth rate underscores semiconductors' increasingly vital role as vehicles become more electrified, connected and autonomous.
Today's automobiles rely heavily on semiconductor technology for fundamental operations, from converting electrical power efficiently to processing vast amounts of sensor data in real time. The industry's pivot towards battery-electric platforms and software-driven functionality is dramatically raising the electronic content per vehicle.
This evolution is further accelerated by global emission reduction targets and consumer expectations for sophisticated connectivity and safety features. Advanced materials like Silicon Carbide and Gallium Nitride are enabling new generations of power management components capable of handling the extreme voltages and thermal demands of electric propulsion systems.
Sensor components are projected to achieve the steepest growth curve among all semiconductor types. The expansion of driver-assistance capabilities requires vehicles to carry extensive arrays of detection equipment, radar transceivers, LiDAR units, ultrasonic proximity sensors and high-resolution cameras, working in concert to map the vehicle's surroundings with precision.
These technologies are fundamental to collision avoidance, automated parking and adaptive speed control, forming the foundation for increasingly autonomous driving capabilities. In electric and hybrid platforms, sensors additionally perform critical monitoring of battery cells and cooling systems.
Conventional combustion vehicles are forecast to represent the largest propulsion category through 2030, particularly across developing economies where affordability concerns and established refuelling networks favour traditional technology. These vehicles nonetheless require sophisticated chips to meet stringent emission regulations, improve fuel consumption and support modern infotainment and connectivity expectations.
Regional analysis indicates that Asia Pacific will dominate market share, supported by concentrated automotive production in China, Japan, South Korea and India. These countries are making substantial investments in both electric vehicle manufacturing and indigenous semiconductor production capabilities.
As South Africa forges ahead in the automotive landscape, a notable divide has emerged in the growing realm of new-energy vehicles.
Volkswagen is accelerating its African ambitions, with Egypt emerging as the latest contender for a major manufacturing role.
Kenya’s automotive industry recently made headlines when Tad Motors unveiled its first range of locally assembled electric vehicles (EVs), igniting discussions across Africa about the continent’s growing capacity for indigenous mobility solutions.
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You can't buy happiness but you can buy cars and that's kind of the same thing.
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As South Africa forges ahead in the automotive landscape, a notable divide has emerged in the growing realm of new-energy vehicles.
Kenya’s automotive industry recently made headlines when Tad Motors unveiled its first range of locally assembled electric vehicles (EVs), igniting discussions across Africa about the continent’s growing capacity for indigenous mobility solutions.
Volvo Trucks South Africa delivered the first of nine new electric trucks that will be added to DSV’s (an international supply-chain operator) local fleet over the next few months.