Chinese Electric Vehicle Manufacturers Turn to Africa Amid U.S. and EU Sanctions
As the U.S. and EU ramp up sanctions on Chinese electric vehicles (EVs), Chinese manufacturers are pivoting their focus to Africa, with plans to establish flagship stores and assembly plants across the continent, according to a report by Commercial Times citing South China Morning Post.
The report highlights a significant surge in Chinese new energy vehicle exports to Africa, with a 291% year-on-year growth in 2023. Chinese-made electric buses are becoming increasingly common in countries like Ethiopia, Kenya, Rwanda, and South Africa.
One key destination for Chinese investment in Africa is Egypt, strategically positioned at the crossroads of Asia, Africa, and Europe. Companies such as BAIC Group and Geely Auto’s Zeekr are making inroads in the Egyptian market, with plans to establish assembly plants and distribution networks.
BAIC Group, in partnership with Alkan Auto, aims to produce 20,000 EVs annually in Egypt by the end of 2025, with projections to increase this to 50,000 units within five years. Leveraging Egypt’s geographic location and access to the Suez Canal, the plant will serve both domestic and export markets in Africa and the Middle East.
Zeekr, another Chinese EV brand, is set to enter the Egyptian market by the end of the year through a distribution agreement with EIM Group. Egypt’s low labor costs, abundant sunlight for renewable energy production, and strategic trade advantages make it an attractive location for Chinese automakers.
Furthermore, Chinese automakers like Chery, BYD, and XPeng are expanding their presence in Africa. Chery plans to establish an assembly line in Kenya, while BYD and XPeng have entered markets in countries such as Morocco, Rwanda, and South Africa.
BYD recently introduced three EV models in Kenya and has expanded to 12 African markets, showcasing the growing interest and investment by Chinese EV manufacturers in the continent.
