Africa Electric Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Africa Electric Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Africa Electric Vehicle Market was valued at USD 11.94 billion in 2021, and it is projected to reach USD 21.39 billion by 2027, registering a CAGR of 10.2% during the forecast period.

The COVID-19 pandemic's impact on the Africa electric vehicle sector is unavoidable, as it has damaged practically every other industry in the market. Manufacturing units were closed due to the region's electric vehicle market downturn, with social distancing standards to follow and limited employees available to run production lines with all safety procedures. Some of the OEMs are launching their vehicle which would help the target market growth. For instance, Agilitee Africa, a South African Electric Vehicles [EV] manufacturer, has debuted the Agilitee-Go, its first self-charging four-wheeler electric vehicle. This comes after the firm obtained a certification from the South African government recognizing Agilitee as a car manufacturer in their country.

Over the long term, African countries such as South Africa, Egypt, and Morocco, among Others have established goals to reduce car emissions in upcoming years. They have begun to promote the development and selling of the EV market as well as the associated charging infrastructure. For instance, Abdul Latif Jameel Finance Egypt has established a new financing program for electric cars (EV), the first of its type in Egypt, and supports the Egyptian government's calls to "go green." The new initiative will pay clients up to US$ 208,900 (EGP 4 million) over five years to help enable access to EVs and stimulate the expansion of Egypt's EV industry. The program's launch coincides with Egypt's impending EV adoption. The number of charging stations across the country is growing, and Egypt is anticipated to have its first domestically built electric vehicle in 2023. The government is incentivizing customers to buy electric vehicles.

However, The market has constraints such as a lack of charging infrastructure, which may hamper the market growth.

Egypt is expected to witness a considerable market share in Africa Electric vehicles over the forecast period. This is attributed to the supportive steps taken by the Ministry of Public Business Sector that ten businesses and consortia had qualified to bid for the management and operation of electric car charging stations in Egypt, as the latest move toward broader use of electric vehicles. According to the ministry, 14 companies and consortia have expressed interest in managing and operating the Electric Vehicle Charging Stations Company, which is still in the works. Within the next 18 months starting from April 2022, the business plans to build and operate 3,000 charging stations for electric vehicles in the governorates of Cairo, Giza, Alexandria, and Sharm El-Sheikh, as well as on major motorways. It is predicted that the cost of establishing it will be LE450 million. Based on such development the target market is expected to grow significantly.

Key Market TrendsPassenger Car Electric Vehicle Type Is Expected To Have High Market Share

Africa is one of the top countries witnessing substantial vehicle transitions. The transition from traditional autos to electric battery-powered vehicles has been both stunning and significant. This rapid shift is the result of greater knowledge of environmental issues and the need to meet African economies' greener objectives. Because of measures launched by African governments, the use of electric passenger vehicles in Africa has developed progressively over the years. African economies such as Ghana and Kenya aspire for rapid expansion and development by the end of 2030. The Automobile Association of Zimbabwe, together with other members of the African Council of Touring and Automobile Clubs, indicated that unrestricted car importation has a severe influence on the continent's environment, health, society, and economy.

In 2021, the UN Environment Programme (UNEP), in collaboration with the global electric facility, announced intentions to assist South Africa in transitioning to zero-emission electric mobility. The program will focus on establishing electric charging stations, lowering production and manufacturing costs, and producing affordable plug-in hybrid electric cars as a result of this collaboration. This, in turn, is projected to boost sales of battery-powered electric passenger automobiles.

South Africa Is Expected To Witness A High Market Share Over The Forecast Period

South Africa Electric Vehicle Market is expected to witness a significant growth in 2021 South Africa is ranked 22nd in the world for automobile manufacture, with a 0.58% market share. With rising foreign direct investment and trade, the South African automotive industry's growth strategy have been centred on becoming strongly integrated into the global automotive environment. The South African Automotive Masterplan (SAAM) 2021-2035 aims to generate 1% of worldwide vehicle manufacturing, or 1.4 million vehicles per year, in South Africa by 2035, significantly improving the country's standing and global vehicle production ranking. Additionally, South In comparison to the rest of the world, Africa's electric vehicle (EV) market is growing slowly but steadily, with a total of 1,559 units sold by the beginning of 2022. This is according to the International Energy Agency's (IEA) annual Global Electric Vehicle Outlook report for 2022, which was created in partnership with South Africa's annual contributor uYilo eMobility Programme, a Technology Innovation Agency initiative. According to the report, global EV (battery electric and plug-in hybrid vehicle) sales more than doubled from the previous year in early 2022, reaching a new high of 6.6 million.

Competitive Landscape

The African electric car market is dominated by a few companies, including Volkswagen AG, BMW AG, Stellantis N.V., and others. As the region's demand for electric vehicles grows, the companies are forming alliances, joint ventures, and acquisitions with significant industry competitors. For instance,

• On August 2021, Stellantis N.V. confirmed that its German automotive manufacturing partner Opel would commence electric vehicle (EV) production in Morocco. The Rocks-e model, an updated version of Citroen's Ami EV microcar, will be the first all-electric passenger car produced in North Africa.
• In early 2022, German automotive manufacturer, Audi, introduced six, highly anticipated e-tron models to the South African market which included a series of all-electric vehicles that produce zero direct CO2 emissions while driving. Audi’s e-tron 55 Sport Utility Vehicle (SUV) is the lowest-cost model in the line-up, offering a range of between 369 km and 440 km.

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