As trade frictions rise between China and Europe, the US, and Canada, African markets are becoming attractive alternatives for Chinese electric vehicle (EV) brands. The European Commission, the US, and Canada have imposed tariffs on heavily subsidized Chinese-built EVs, prompting Chinese EV makers to turn to Africa.
In mid-June, the European Commission hiked tariffs on Chinese electric vehicles to 38.1%. The US and Canada have also proposed 100% tariffs on Chinese-made EV imports.
Chinese EV brands are expanding their presence in Africa through dedicated stores and partnerships with local companies. BYD, one of Europe’s best-selling Chinese EV brands, launched a showroom in Zambia in September, marking its fourth market in Africa. BYD has entered partnerships in Rwanda, South Africa, and Kenya.
In Kenya, EV company BasiGo and local manufacturer Associated Vehicle Assemblers (AVA) have committed to integrating BYD’s technology. NETA Auto, another Chinese brand, opened its first flagship store in Kenya in June and plans to enter 20 African countries, open 100 stores, and achieve annual sales of over 20,000 units within three years.
XPENG, another Chinese smart EV company, partnered with Egyptian auto maker Raya Auto to introduce its brands in the North African market. Research firm Statista projects Africa’s EV sales to grow from slightly over 2,000 units in 2024 to over 3,600 by 2029, with Chinese auto brands as key beneficiaries.
The expanding Chinese EV brands are expected to compete with European and Japanese brands like Volkswagen, Toyota Motor, and Suzuki in Africa’s general car market. Chinese EVs offer electric powered variants and attractive price points, compared to the gasoline-powered vehicles dominated by European and Japanese brands.
New vehicle sales in Africa reached 1,049,842 by the end of 2023, with South Africa, Morocco, and Egypt leading the market. Used vehicles make up 85% of Africa’s overall vehicle fleet, with Egypt and Morocco driving growth in the used car market.
In summary, Chinese EV brands are expanding into Africa amid trade tensions with other regions, leveraging partnerships and dedicated stores to capture a growing market for sustainable transportation solutions.
