Ethiopia rechargeable energy storage vehicle manufacturing price

Why are electric vehicles becoming popular in Ethiopia?

Ethiopia’s rapid embrace of electric vehicles is a strong signal of its desire to shift away from vehicles dependent on expensive imported fuel. While Chinese-manufactured EVs are becoming common in Ethiopia, the EV market is still new enough and large enough for U.S. firms to showcase their leading technologies and solutions.

How many EVs are there in Ethiopia?

There are currently more than 30,000 EVs in Ethiopia, including both passenger and commercial vehicles. By 2032, the GOE expects 148,000 passenger EVs and 4,855 commercial EVs will be in the market. The public sector is leading the charge—in 2022, the city of Addis Ababa purchased 110 electric buses at a cost of $15 million.

Why are EVs so expensive in Ethiopia?

Imports of vehicles with combustion engines have 15% VAT; up to 100% excise tax; 10% surtax; and 3% withholding tax–thus making them extremely expensive in the local market. Fully assembled and imported EVs only have a 15% “customs duty”, which makes them far more affordable for the average Ethiopian consumer.

Should US EV companies invest in Ethiopia?

With Ethiopia’s recent commitment to 100% electric vehicles, U.S. EV companies should strongly consider this unique first-mover business opportunity—particularly among higher-end market segments where consumers are prepared to pay a premium for products with global brand recognition and reputations for high quality.