We can learn from the top 10 countries with the highest motorcycle usage that the electric motorcycle market is mainly concentrated in Southeast Asian countries. In fact, the electric motorcycle market in Africa is also very potential. In this article, we will analyze the electric motorcycle market situation, drivers and business models in Africa.
Table of Contents
Situation of the Africa electric motorcycle market
According to the data, the number of registered motorcycles in sub-Saharan Africa has grown from 5 million in 2010 to 27 million by 2022, of which about 80% are used in the motorcycle cab industry.
In Africa, where road conditions are backward and residents’ incomes are not high, motorcycles are not only a private means of transportation, but have also become an important part of local public transportation. Especially with the development of motorcycle online services, the African electric motorcycle market is ushering in huge development opportunities.
In Kenya, the largest electric motorcycle market in Africa, 5.2 million people are engaged in motorcycle transportation services (about 1/10 of the total population).
Electric motorcycle market driving factors in Africa
Cost saving
International oil prices have risen rapidly in recent years, and the Russia-Ukraine conflict has led to further increases in oil prices. Compared to fuel motorcycles that cost roughly 3usd a kilometer, electric motorcycles cost only 3 cents a kilometer. this suggests that consumers who buy an electric motorcycle can pay back their money in less than a year.
State guidance
States
Policies/initiatives
Rwanda electric motorcycle market
In August 2019, Rwanda's president expressed hope that all motorcycles in the country would soon be electrified
Benin electric motorcycle market
Electric and hybrid motorcycles manufactured or sold in Benin are exempt from customs duties and VAT as of January 1, 2022
Kenya electric motorcycle market
In 2023, the United Nations Institute for Training and Research (UNITAR) partnered with a group of Kenyan banks to launch a green mobility program that promotes the use of electric motorcycles.
In June 2023, the President of Kenya signed a bill that included "exemption from excise tax on locally assembled electric motorcycles"
Clean energy supply
Take Kenya, Africa’s largest electric motorcycle market, as an example. Kenya’s continuous electricity supply, of which about 95% is renewable, is dominated by hydroelectric power and has an extensive electricity network. The country’s power utility estimates that it generates enough electricity to charge 2 million electric motorcycles per day: according to the data, the country’s electricity supply rate is over 75%, with Nairobi’s rate even higher.
Business model of electric motorcycle market
Sell electric motorcycles without batteries and make sustained profits from battery swapping station.
Batteries are the most expensive component of an electric motorcycle, so reducing this expense can greatly reduce the financial strain on the rider. Combine this with the fact that local electric motorcycles are primarily used for commercial purposes, and the cost of time is particularly important.
With this in mind, local businesses have opted for the model of setting up a swapping station – riders can go to the station to replace an undercharged battery with a fully charged one, which only takes 2-3 minutes without recharging, and they only have to pay about 300 shillings (about $2) each time they change the battery, which is usually only twice a day (about $4). For more detail, you could refer to battery swapping technology article.
The rise of online motorcycles has seen several companies enter the electric motorcycle market. more than 50 startups have entered the electric motorcycle market in this part of East Africa alone. Uber is launching its electric motorcycle service in Kenya in 2022, marking the company’s first electric motorcycle service in Africa.
It plans to launch 3,000 electric motorcycles. Africa’s homegrown automotive company Spiro currently has 6,000 electric motorcycles in 3 African countries, building a construction effort of battery swap stations across the country.
Joint ventures between Chinese and local companies
From June 27th to 28th, the Minister of Foreign Affairs of the Republic of Benin and the Ambassador of the Republic of Benin visited Changzhou, and SPIRO Benin signed a contract with Changzhou Horwin New Energy Technology Co. The company plans to sell 500,000 electric motorcycles in Africa in the next five years, totaling 1 billion U.S. dollars, with business segments covering emerging markets such as Benin, Uganda and Kenya.
Previously, Horwin reached a strategic cooperation with Spiro, a local African electric vehicle company, to jointly layout the African market in 2022.
Spiro is the largest electric vehicle platform in Africa with more than 6,000 electric motorcycles and scooters, which is expected to exceed 30,000 by the end of 2023, and has signed exclusive cooperation agreements for new energy electric vehicles with several African countries including Benin, Togo and Rwanda.
Summary
At present, the global electric motorcycle market is mainly concentrated in Southeast Asia, with Indonesia, Thailand and Vietnam as the representative of Southeast Asian countries to introduce relevant policies to restrict the use of traditional fuel motorcycles.
By 2023, Southeast Asian countries have introduced electric two-wheeled vehicle purchase subsidies to speed up the “oil to electricity” process, Southeast Asia electric motorcycle market demand has been continuously released, fuel motorcycle is electric motorcycle, electric bicycles, electric cars and other two wheeler electric bike products are gradually replaced, Southeast Asia Southeast Asia has also become another important growth market in the field of electric two-wheeled vehicles.
Compared with Southeast Asia, the electric motorcycle market in Africa is still in its infancy and is a “blue ocean market”. In Africa, motorcycle as a means of livelihood for the local people, the market demand is expected to remain stable, electric motorcycle as a convenient and cost-saving alternatives, the future development momentum should not be underestimated.
Coupled with the fact that many governments intend to promote the transition from oil to electricity, and have even begun to cooperate with electric motorcycle companies, the development of the local electric motorcycle market has been further boosted.
China as the main importer of African electric two-wheeled, for Chinese enterprises, timely entry, through the cooperation with local electric motorcycle enterprises to enter the African electric motorcycle market, is not a good opportunity.
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Electric motorcycle market analysis in Africa
Situation of the Africa electric motorcycle market
According to the data, the number of registered motorcycles in sub-Saharan Africa has grown from 5 million in 2010 to 27 million by 2022, of which about 80% are used in the motorcycle cab industry.
In Africa, where road conditions are backward and residents’ incomes are not high, motorcycles are not only a private means of transportation, but have also become an important part of local public transportation. Especially with the development of motorcycle online services, the African electric motorcycle market is ushering in huge development opportunities.
In Kenya, the largest electric motorcycle market in Africa, 5.2 million people are engaged in motorcycle transportation services (about 1/10 of the total population).
Electric motorcycle market driving factors in Africa
International oil prices have risen rapidly in recent years, and the Russia-Ukraine conflict has led to further increases in oil prices. Compared to fuel motorcycles that cost roughly 3usd a kilometer, electric motorcycles cost only 3 cents a kilometer. this suggests that consumers who buy an electric motorcycle can pay back their money in less than a year.
Take Kenya, Africa’s largest electric motorcycle market, as an example. Kenya’s continuous electricity supply, of which about 95% is renewable, is dominated by hydroelectric power and has an extensive electricity network. The country’s power utility estimates that it generates enough electricity to charge 2 million electric motorcycles per day: according to the data, the country’s electricity supply rate is over 75%, with Nairobi’s rate even higher.
Business model of electric motorcycle market
Sell electric motorcycles without batteries and make sustained profits from battery swapping station.
Batteries are the most expensive component of an electric motorcycle, so reducing this expense can greatly reduce the financial strain on the rider. Combine this with the fact that local electric motorcycles are primarily used for commercial purposes, and the cost of time is particularly important.
With this in mind, local businesses have opted for the model of setting up a swapping station – riders can go to the station to replace an undercharged battery with a fully charged one, which only takes 2-3 minutes without recharging, and they only have to pay about 300 shillings (about $2) each time they change the battery, which is usually only twice a day (about $4). For more detail, you could refer to battery swapping technology article.
The rise of online motorcycles has seen several companies enter the electric motorcycle market. more than 50 startups have entered the electric motorcycle market in this part of East Africa alone. Uber is launching its electric motorcycle service in Kenya in 2022, marking the company’s first electric motorcycle service in Africa.
It plans to launch 3,000 electric motorcycles. Africa’s homegrown automotive company Spiro currently has 6,000 electric motorcycles in 3 African countries, building a construction effort of battery swap stations across the country.
Joint ventures between Chinese and local companies
From June 27th to 28th, the Minister of Foreign Affairs of the Republic of Benin and the Ambassador of the Republic of Benin visited Changzhou, and SPIRO Benin signed a contract with Changzhou Horwin New Energy Technology Co. The company plans to sell 500,000 electric motorcycles in Africa in the next five years, totaling 1 billion U.S. dollars, with business segments covering emerging markets such as Benin, Uganda and Kenya.
Previously, Horwin reached a strategic cooperation with Spiro, a local African electric vehicle company, to jointly layout the African market in 2022.
Spiro is the largest electric vehicle platform in Africa with more than 6,000 electric motorcycles and scooters, which is expected to exceed 30,000 by the end of 2023, and has signed exclusive cooperation agreements for new energy electric vehicles with several African countries including Benin, Togo and Rwanda.
Summary
At present, the global electric motorcycle market is mainly concentrated in Southeast Asia, with Indonesia, Thailand and Vietnam as the representative of Southeast Asian countries to introduce relevant policies to restrict the use of traditional fuel motorcycles.
By 2023, Southeast Asian countries have introduced electric two-wheeled vehicle purchase subsidies to speed up the “oil to electricity” process, Southeast Asia electric motorcycle market demand has been continuously released, fuel motorcycle is electric motorcycle, electric bicycles, electric cars and other two wheeler electric bike products are gradually replaced, Southeast Asia Southeast Asia has also become another important growth market in the field of electric two-wheeled vehicles.
Compared with Southeast Asia, the electric motorcycle market in Africa is still in its infancy and is a “blue ocean market”. In Africa, motorcycle as a means of livelihood for the local people, the market demand is expected to remain stable, electric motorcycle as a convenient and cost-saving alternatives, the future development momentum should not be underestimated.
Coupled with the fact that many governments intend to promote the transition from oil to electricity, and have even begun to cooperate with electric motorcycle companies, the development of the local electric motorcycle market has been further boosted.
China as the main importer of African electric two-wheeled, for Chinese enterprises, timely entry, through the cooperation with local electric motorcycle enterprises to enter the African electric motorcycle market, is not a good opportunity.
For more electric motorcycle related articles you can refer to electric motorcycle vs gas, motorcycle charging, electric motorcycle manufacturers.