Finding the future of electric transportation in Africa

Finding the future of electric transportation in Africa
As we all know, Africa lacks a complete manufacturing system, and most motorcycles and electric motorcycles in the African market were imported from India and China. This article is about to introduce the current electric two-wheeler market.
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    Electric motorcycles are more expensive than second-hand fuel motorcycles due to the lack of electricity in Africa, which makes charging expensive and difficult to charge.

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    Purchasing power status quo and market environment

    The average consumer has a low income and simply cannot afford to buy a brand new electric motorcycle. Obviously, this environment is simply not suitable for the development of local electric motorcycles. Why are local electric motorcycle companies and their investors so optimistic about the local electric motorcycle market in Africa, and how can they solve the problem and seize the market?

    The reason for gradually seizing the market

    • Environmental impact

    Electric motorcycles are the most representative and potential means of transportation. In Africa, motorcycles are one of the most affordable means of transport and a major source of youth employment.

    Motorcycles are imported three times more than cars every year. This trend is likely to continue to accelerate as household incomes rise. This makes motorcycles an important commercial transportation asset with high past and future growth rates.

    • Economic benefits

    Electric motorcycles are also a more economical travel option and have a relatively high affordability. It not only saves users a lot of fuel, but also reduces carbon dioxide emissions due to the acceleration of global climate change.

    The reason for gradually seizing the market

    • Social impact

    Africans rely heavily on motorbike taxis for travel. Electric motorcycles are becoming an important option for some Africans who are struggling to sustain their businesses and are looking for affordable and sustainable means of transportation due to rising fuel costs and imported fuel taxes in the region.

    • Low emissions

    In addition to the environmental benefits, the use of electric motorcycle taxis also provides an overall quiet ride experience for both drivers and passengers.

    Driven by both technology and policy

    In the face of challenges, technological progress and policy support have become the two major engines driving market development. Lithium iron phosphate batteries are a perfect match for the needs of the African market with their long life, high safety and economy.

    The stable performance of these batteries in high-temperature environments, especially suitable for changeable climatic conditions, provides technical support for the wide promotion of electric motorcycles.

    At the same time, African governments are gradually recognizing the importance of electric mobility and have begun to introduce a series of incentives, including subsidies for car purchases, the construction of charging station networks, and the optimization of electricity supply.

    Driven by both technology and policy

    Countries such as Kenya have begun to promote electric motorcycles in a way that aims to reduce operating costs and environmental pollution, demonstrating the government’s unwavering support for the transition to electrification.

    The future market space of electric motorcycles in Africa

    • Large market space in the future

    Although the market for household electric two-wheelers in Sub-Saharan Africa is small in the short term due to limited purchasing power. However, the market for commercially operated motorcycles, which have relatively stronger purchasing power, is large enough.

    The number of motorcycles has grown from 5 million in 2010 to 27 million in 2022, with about 80% of them being commercial vehicles used for taxi or delivery services.

    • Localize product design

    In the past, most of Africa’s electric motorcycles were imported directly from India and China, and some Chinese companies tried to move their domestic electric two-wheeler production lines directly to Africa.

    However, because these motorcycles basically cannot meet the actual demand of the local market, the sales are not good. For example, the road conditions in most areas are poor and uneven, and use of electric motorcycle charger in charging is extremely inconvenient.

    The future market space of electric motorcycles in Africa

    Therefore, potential motorcycle operators expect electric motorcycles to have super range and power. At the same time, the structure is strong and durable, which is convenient for electric motorcycle battery replacement.

    • Reduce manufacturing costs

    There are a variety of ways to address potential consumers’ concerns about the high cost of replacing electric motorcycles. For the vast majority of consumers, the price of brand-new electric motorcycles is still too high to afford compared to the current mainstream second-hand fuel motorcycles.

    In this regard, local electric vehicle and motorcycle companies have basically adopted installment payments, battery leasing, vehicle leasing and other methods, and at the same time established their own charging and swapping power grid points.

    Customers only need to make a small down payment, and then pay the balance on a daily or regular basis with a portion of the income from pulling people and goods.

    The battery can be leased separately from the charging and swapping grid point, which greatly reduces the customer’s payment pressure and solves the customer’s charging problem.

    Reduce manufacturing costs

    Of course, this requires a large amount of financing for electric motorcycle companies, heavy asset investment, the establishment and operation of charging and swapping power grid points, and at the same time, it takes a long time to recover the cost of the vehicle and obtain profits. And to get the best electric motorcycle price.

    This is precisely where imported electric motorcycle companies are unwilling or unable to do it. In terms of marketing and promotion, it is pointed out that the use of electric motorcycles can save fuel costs and increase the income of drivers.

    Conclusion

    Some Indian and Chinese electric motorcycle companies have realized the advantages and resources of local companies and have started to cooperate with local companies to produce and sell electric motorcycles.

    In summary, it is not difficult to see that more and more electric motorcycles will be seen, leading to the transition to green energy transportation in Africa.

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