The era of electric motorcycles in Africa is coming

It is well known that previously, motorcycles and electric motorcycles in the African market were mostly imported from India and China. Due to power shortages in Africa, charging is expensive and difficult, making electric motorcycles more expensive than used gasoline motorcycles. With generally low consumer incomes, many cannot afford a brand-new electric motorcycle. Clearly, this environment is not conducive to the development of local electric motorcycles. Why are local electric motorcycle companies and their investors optimistic about the African electric motorcycle market, and how are they overcoming the challenges to capture the market?

1. Future market space is large enough
Although the home electric two-wheeler market in sub-Saharan Africa is still small in the short term due to limited purchasing power, the market for commercial operation motorcycles, which have relatively stronger purchasing power, is large enough. According to data from the International Automobile Federation Foundation, the number of registered gasoline motorcycles in sub-Saharan Africa grew from 5 million in 2010 to 27 million in 2022, with about 80% used for taxi or delivery services.

2. Localized product design to address user pain points.
Previously, electric motorcycles in Africa were mainly imported directly from India and China, and some Chinese companies tried to move their production lines to Africa. However, these motorcycles generally failed to meet local market needs, leading to poor sales.

For example, in sub-Saharan Africa, most areas have poor road conditions and rugged terrain, and charging is extremely inconvenient. Therefore, potential motorcycle operators hope for electric motorcycles with strong endurance and power, as well as durable structures that facilitate battery swapping and the safety of battery used in electic vehicle when used in hot weather.

3. Various methods to address consumers’ concerns about high costs of switching to electric motorcycles.

For most consumers, the price of a brand-new electric motorcycle is still high compared to the current mainstream used gasoline motorcycles in Africa. To address this, local electric motorcycle companies in Africa have generally adopted installment payments, battery leasing, and vehicle leasing methods, and established their own charging and swap station.

Customers only need to make a small down payment and then pay the remaining amount from the income earned through transportation services. Batteries can be leased separately from the charging and swapping network points, significantly reducing the payment burden and solving the charging difficulty.

Of course, this requires electric motorcycle companies to secure substantial financing and invest heavily in establishing and operating charging and swapping network points, making it a long time before recovering vehicle costs and making a profit. In marketing, the emphasis is on saving fuel costs and increasing drivers’ income by using electric motorcycles for operations.

4.”Electric transportation” plan to open a new chapter in green transportation.
Statistics show that there are about 3 million motorcycles in Nairobi, the capital of Kenya, but they are old and poorly maintained, causing serious exhaust pollution. According to the Clean Air Fund, road traffic emissions account for 20% of the city’s greenhouse gas sources and 40% of air pollution sources.

The popularity of electric motorcycles can significantly reduce carbon emissions and help lower operating costs for vehicle owners. With rising fuel prices, the cost-performance advantage of electric motorcycles becomes more apparent.

To reduce air pollution, the Kenyan government launched the “Electric Transportation” plan nationwide in September 2023, with supporting the electric motorcycle industry being a key component of this plan. The Kenyan government aims to achieve a target of over 200,000 electric motorcycles by the end of 2024.

Currently, other African countries are also promoting electric motorcycles. A recent report from the international think tank “Empower New Energy” predicts that by 2027, the African motorcycle market will grow to $5.07 billion, with electric motorcycles becoming the leading product in the sustainable transportation transformation in sub-Saharan Africa.