Africa Electric Vehicle Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 15.80 Billion |
| Market Size (2029) | USD 25.40 Billion |
| CAGR (2024 - 2029) | 10.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Africa Electric Vehicle Market Analysis
The Africa Electric Vehicle Market size is estimated at USD 15.80 billion in 2024, and is expected to reach USD 25.40 billion by 2029, growing at a CAGR of 10.20% during the forecast period (2024-2029).
Over the long term, factors such as increasing investment in the automotive industry, increased automobile production, and increased EV sales, coupled with rapid EV development and government policies for producing electric cars, may drive market growth.
Africa is one of the fastest-growing markets for electric vehicles. According to the Centre for Science and Environment, African countries have begun to set policies and aspirational targets for electrification. For example, Cape Verde has set 100% electrification targets for new sales of passenger cars by 2035 and urban buses by 2040.
Similarly, the United Nations Environment Programme (UNEP) expects electric and traditional two- and three-wheeler sales in Africa to increase substantially by 2050.
Considering the market potential, EV manufacturers and governments of various countries are focusing on new investments and policies to meet net zero emission goals in the future.
- In November 2023, the South African unit of US auto giant Ford announced its plans to invest SAR 5.2 billion (USD 281 million) to produce a hybrid vehicle in the country, as it urged the government to move fast on an EV policy.
Various EV manufacturers are experiencing a surge in innovations and product launches to cater to the increasing demand for vehicle sales in 2024, and various e-mobility start-ups and businesses are emerging in many African countries to produce electric vehicles.
- The battery electric vehicle (BEV) version of the Jac T9 is set to be South Africa’s second true electric bakkie, following the Maxus T90, which was planned to be launched in 2024.
The focus on the transition toward new energy vehicles will also have a positive impact on the market as South Africa’s cabinet has approved the Just Energy Transition Implementation Plan (JET IP). The JET IP is set for a five-year period (2023-2027), and the USD 1 billion guarantee program for Just Energy Transition (JET) has been approved by the African Development Bank Group. The program will support energy efficiency, rehabilitation of municipal electricity delivery, green hydrogen, and new electric vehicles.
Africa Electric Vehicle Market Trends
The Passenger Cars Segment Holds the Highest Market Share
Passenger cars have gained immense popularity among drivers over the past few years due to features such as stylish design, compact size, and economic value. In numerous countries, passenger cars are the most common mode of transportation. The improving lifestyles, increasing purchasing power and disposable income, rising brand awareness, and growing economy are leading to changes in customer preferences worldwide, resulting in high sales of passenger cars.
With the increased demand, electric car sales have been growing exponentially due to falling costs, technological advancements, and government support, contributing to passenger car growth. In addition, a rise in the demand for SUVs creates profitable opportunities for market players and acts as a major driving factor for the passenger car market’s growth worldwide.
Considering the scenario, companies are working on new product launches, expanding their production capacities, and investing in technological advancements.
- In November 2023, the South African unit of US auto giant Ford announced its plans to invest SAR 5.2 billion (USD 281 million) to produce a hybrid vehicle in the country, as it urged the government to move fast on an EV policy.
- In October 2023, a South African car company announced its plans to launch a new sedan in 2024 that will be available as an electric (EV).
Owing to such factors, the passenger cars segment is anticipated to grow over the forecast period.
South Africa Holds the Highest Market Share
South Africa holds the highest market share within Africa. Due to rising FDI and trade, the South African automotive industry's growth strategy has been centered 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.
- Between January and March 2024, South Africa saw sales of 3,042 New Energy Vehicles (NEVs), a significant increase from the 1,665 units sold during the same period in 2023, representing an impressive growth of nearly 83%. NEVs include fully electric vehicles, plug-in hybrids, and traditional hybrids.
Manufacturers like Mercedes, BMW, and Mitsubishi have announced their plans to launch new or next-generation model electric vehicles in South Africa. For instance,
- In August 2023, Mahindra unveiled Thar.e. in South Africa. The electric SUV was planned to be launched in 2024.
The factors mentioned above are anticipated to have positive growth in the studied market over the forecast period.
Africa Electric Vehicle Industry Overview
The African EV market is consolidated and led by globally and regionally established players. Some of the major players in the market include Nissan Motor Co. Ltd, Volkswagen AG, Tesla Inc., BMW AG, BYD, and Toyota Motor Corporation. The companies are adopting strategies such as new product launches, collaborations, and mergers to sustain their market positions. For instance,
- In September 2023, Shanghai Automotive Industrial Corporation (SAIC), one of the world’s top five EV manufacturers, appointed a South African dealer and distributor to market and sell its commercial EVs. MAXUS Electric Vehicles, the newly formed green mobility business, is among the country’s first distributors to focus exclusively on the EV market.
- In December 2023, South Africa’s motoring industry announced its plans to produce its first electric vehicle (EV) in 2026 and outlined plans for the country’s green transport transition.
Africa Electric Vehicle Market Leaders
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Nissan Motor Co., Ltd.
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Volkswagen AG
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Tesla Inc.
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BMW AG
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Toyota Motor Corporation
*Disclaimer: Major Players sorted in no particular order
Africa Electric Vehicle Market News
- January 2024: Toyota’s first EV was sold in South Africa, and the BZ4X will arrive in the country in 2025. The company announced its State of the Motoring Industry 2024 event in Johannesburg.
- June 2024: Kigali-based EV energy tech company Ampersand signed a landmark agreement with Chinese EV company BYD to advance electric motorbike development in Africa. Ampersand will source batteries from BYD, its primary supplier, to produce approximately 40,000 electric motorcycles by the end of 2026.
Africa Electric Vehicles (EV) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Government Policies to Promote EV Sales
4.2 Market Restraints
4.2.1 High Cost of Capital Expenditure for Electric Vehicle Infrastructure
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Propulsion Type
5.1.1 Battery Electric Vehicles
5.1.2 Hybrid Electric Vehicles
5.1.3 Fuel Cell Electric Vehicles
5.1.4 Plug-in Hybrid Electric Vehicles
5.2 Vehicle Type
5.2.1 Passenger Cars
5.2.2 Commercial Vehicles
5.3 Vehicle Drive Type
5.3.1 Front-wheel Drive
5.3.2 Rear-wheel Drive
5.3.3 All-wheel Drive
5.4 By Country
5.4.1 South Africa
5.4.2 Morocco
5.4.3 Nigeria
5.4.4 Egypt
5.4.5 Ghana
5.4.6 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Nissan Motor Co. Ltd
6.2.2 Volkswagen AG
6.2.3 Tesla Inc.
6.2.4 Toyota Motor Corporation
6.2.5 BMW AG
6.2.6 Kia Corporation
6.2.7 Volvo Car Corporation
6.2.8 Mercedes-Benz Group
6.2.9 Rivian Automotive Inc.
6.2.10 Groupe Renault
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Africa Electric Vehicle Industry Segmentation
An electric vehicle (EV) runs on electricity rather than an internal combustion engine (ICE). As a result, such a vehicle is viewed as a potential replacement for current-generation automobiles to address issues such as rising pollution, global warming, and depleting natural resources.
The African EV market is segmented by propulsion, vehicle type, vehicle drive type, and country. By propulsion, the market is segmented into battery electric vehicles, hybrid electric vehicles, fuel cell electric vehicles, and plug-in hybrid electric vehicles. By vehicle type, the market is segmented into passenger cars and commercial vehicles. By vehicle drive type, the market is segmented into front-wheel drive, rear-wheel drive, and all-wheel drive. By country, the market is segmented into South Africa, Egypt, Morocco, Nigeria, Ghana, and Rest of Africa. The report offers market size and forecasts in value (USD) for all the above segments.
| Propulsion Type | |
| Battery Electric Vehicles | |
| Hybrid Electric Vehicles | |
| Fuel Cell Electric Vehicles | |
| Plug-in Hybrid Electric Vehicles |
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| Vehicle Drive Type | |
| Front-wheel Drive | |
| Rear-wheel Drive | |
| All-wheel Drive |
| By Country | |
| South Africa | |
| Morocco | |
| Nigeria | |
| Egypt | |
| Ghana | |
| Rest of Africa |
Africa Electric Vehicles (EV) Market Research FAQs
How big is the Africa Electric Vehicle Market?
The Africa Electric Vehicle Market size is expected to reach USD 15.80 billion in 2024 and grow at a CAGR of 10.20% to reach USD 25.40 billion by 2029.
What is the current Africa Electric Vehicle Market size?
In 2024, the Africa Electric Vehicle Market size is expected to reach USD 15.80 billion.
Who are the key players in Africa Electric Vehicle Market?
Nissan Motor Co., Ltd., Volkswagen AG, Tesla Inc., BMW AG and Toyota Motor Corporation are the major companies operating in the Africa Electric Vehicle Market.
What years does this Africa Electric Vehicle Market cover, and what was the market size in 2023?
In 2023, the Africa Electric Vehicle Market size was estimated at USD 14.19 billion. The report covers the Africa Electric Vehicle Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Africa Electric Vehicle Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Africa EV Industry Report
Statistics for the 2024 Africa EV market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa EV analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
