【Business Opportunities in Africa】China's Electric Vehicles ...

Recently, prominent clean energy media outlet Cleantechnica noted that China's rising electric vehicle industry is rapidly penetrating the African market and beginning to have an increasingly significant impact on the continent's electrification process.

Specifically, Chinese-made Volkswagen ID. models have become a staple of the local EV market in Ethiopia, appearing frequently in dealership showrooms and on the road. In Ghana, several companies and startups supply more than 20 Chinese-made EVs, covering a wide range of segments including cars, SUVs and minivans. Rwanda's GoKabisa has introduced Geely's Geometry E pure-electric SUV, offering local consumers a cost-effective option. The only new electric vans available in Zimbabwe and Kenya are supplied by BYD, and these vans are already widely used in the local logistics and transportation industries. In the South African market, the SAIC Datsun delivery3 and Dongfeng Xiaokang EC3 have become star products, with sales rising year on year. Overall, Chinese brands and multinational brands manufactured in China are revolutionizing the African automotive market.

Electric Vehicles Becoming a New Trend in Africa

Chinese EV brands have become familiar names in West African countries. The person in charge of BYD said that the company entered the African market in 2004, and its business scope now covers North Africa, West Africa, South Africa and other places. With the popularization of Chinese electric vehicles in African countries, China is becoming the main driving force for the electrification transformation of the African automotive industry. Algeria's Orient newspaper commented that Chinese-made electric vehicles are occupying a growing market share in Africa, providing the necessary technical and product support for Africa's electrification transformation.

Chinese-made electric vehicles are gradually changing the pattern of the African automobile market. Most new and used cars in Africa come from Japanese, European and American brands, especially inexpensive used cars, while Chinese cars have a small local ownership, said He Liehui, chairman of Dharma Road Group. However, Egypt's Yediot Aharanot reports that this is changing rapidly. Cost-effective cars made in China are gradually replacing Japanese and European brands as key players and influencers in the African auto market.

"Chinese electric cars are superior in performance and design and are well suited to Africa's business needs." said Makuka, a Kenyan car salesman.

Supportive policies are coming out in Africa

Cleantechnica points out that the African continent has the potential to bypass the era of fuel vehicles and step directly into the era of electric transportation. However, from the current actual situation, the realization of automobile electrification in Africa is still in its infancy.

Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, said: "Africa is just now beginning to introduce electric vehicles, a shift that is not only expensive, but also has high infrastructure requirements. Africa does not yet have these conditions, and there is still a long way to go before it becomes a consumer trend for electric vehicles." Cui Dongshu, secretary general of the National Passenger Vehicle Market Information Association, also believes that the development of automotive electrification in Africa is still relatively lagging behind, with a weak industrial base that does not yet have the potential for electrification transition.

Although many African countries have taken relevant actions to support the development of the EV industry, infrastructure development remains a prominent issue. South Africa's Green Transportation Strategy sets out clear targets, with plans to gradually increase the proportion of clean-fuel vehicles used in the government's public sector and to expand the number of EV charging stations. Egypt has similar plans to build thousands of electric vehicle charging stations in major cities and on highways. In addition, some African countries are planning to develop local EV industries to drive the electrification transition.

According to research firm Mordor Intelligence, the African EV market is forecast to be worth about $21.4 billion by 2027, at a compound annual growth rate of 10.2%. By 2025, EV sales in some African countries could reach 340,000 to 820,000 units, according to analysis by McKinsey and the Shell Foundation. It is believed that Chinese EV companies can find business opportunities in this potential market.