Chinese company Chery is investing 20 million USD in Kenya to meet the growing demand for electric mobility. This investment is expected to create approximately 3,000 direct and indirect jobs in the country. Shan also revealed that Chery’s entry into the Kenyan market results from the cordial and long-standing relations between the two countries.
Increasing electric car production
Chinese automaker Chery will invest 20 million USD in Kenya to increase the production of electric vehicles (EVs). The agreement, made in partnership with the Kenyan company Afrigreen Automobile, will see the construction of an assembly plant to produce electric vehicles locally. Principal Secretary of the Ministry of Investments, Trade, and Industry, Abubakar Hassan Abubakar, stated that the cooperation should boost the adoption of electric cars in the country by making them more affordable and accessible.
« The assembly plant will help the transport sector become greener, as we currently have about 4,000 electric vehicles out of a population of approximately 1.7 million cars on the roads », Hassan said.
Additionally, Chery International’s director for the Central Africa region, Hai Wei, said that Kenya was chosen to host the assembly plant due to its skilled workforce and its position as an economic hub in Africa.
Producing cars suited to local conditions
Anhui Province’s Vice-Governor, Shan Xiangqian, stated that the cooperation between the two companies would enhance Kenya’s image as an electric mobility hub. Nishant Mishra, Global Director of Future Mobility at Afrigreen Automobile, said that the plant is expected to be operational within the next month, with a production capacity of between 5,000 and 6,000 electric vehicles per year.
Mishra added that they would start with the production of the Omoda sports utility model, as it is suited to both urban and rural terrains, while also diversifying into pickups next year. According to the Sky Quest Electric Car Market Insight report for 2023, the global electric car market was valued at 341.34 billion USD in 2022 and grew to 388 billion USD in 2023.
Growing African EV market
Data from the Energy and Petroleum Regulatory Authority (EPRA) shows that the National Transport and Safety Authority recorded a record number of 2,694 electric vehicles (EVs) in 2023. This represents a significant increase from the 475 units in the previous year. It is worth noting that the total number of registered electric vehicles in the country at the end of 2023 was 3,753.
According to EPRA, this increase is due to several factors:
- The introduction of the electric mobility tariff
- Reduction of excise duties on electric vehicles from 20 % to 10 %
- Exemption from value-added tax for fully electric cars
The booming electric train and vehicle industry in Africa is primarily concentrated in countries that present favorable conditions for long-term growth. Some countries like Ethiopia, Kenya, Nigeria, Rwanda, and Uganda are pioneers in adoption and represent 45 % of the population of sub-Saharan Africa and 60 % of its vehicle sales.
Another shift is that 47 % of potential electric vehicle buyers surveyed are willing to purchase their vehicles online, showing that the sales process is also evolving.
