Chinese automotive manufacturer Chery is set to invest Sh2.62 billion in Kenya to enhance the production of Electric Vehicles (EVs). They are teaming up with Afrigreen Automobile to build a factory that will make electric vehicles (EVs). This will make it easier for people in Kenya to buy and use electric cars. The signing ceremony was attended by a high-ranking delegation from Anhui Province in East China, alongside senior officials from the Kenyan government.
Kenyan Principal Secretary Abubakar Hassan Abubakar from the Ministry of Investments, Trade and Industry indicated that this partnership is anticipated to increase the availability and affordability of EVs in the country. He mentioned, “The assembly plant will contribute to a greener transport sector, particularly as we currently have only around 4,000 electric vehicles among approximately 1.7 million cars on our roads.”
Creating Jobs
Abubakar also noted that the $20 million investment is projected to generate around 3,000 direct and indirect jobs in Kenya. Hai Wei, Director of Chery International for the Central Africa Region, highlighted that Chery has 26 years of innovative research, enabling the production of vehicles tailored for the local market. He emphasized on Kenya’s selection for the assembly plant due to its skilled labor force and status as an economic hub in Africa.
Shan Xiangqian, Vice-Governor of Anhui Province, remarked that the collaboration between Chery and Afrigreen will elevate Kenya’s reputation as a center for e-mobility, citing the long-standing amicable relations between the two countries as a driving factor for Chery’s entry into the Kenyan market. Nishant Mishra, Global Head of Future Mobility at Afrigreen, mentioned that the plant is expected to begin operations within a month, targeting an annual production capacity of between 5,000 and 6,000 EVs. He also announced plans to start with the production of the Omoda sport utility model, which is suitable for both urban and rural environments, with intentions to expand to pickups in the following year.
Electric Car Market Insights
The Sky Quest Electric Car Market Insight Report 2023 indicates that the global electric vehicle market was valued at $341.34 billion (Sh44.63 trillion) in 2022 and rose to $388 billion (Sh50.54 trillion) in 2023. According to data from the Energy and Petroleum Regulatory Authority (EPRA), the National Transport and Safety Authority recorded an impressive 2,694 electric vehicle registrations in 2023, a substantial increase from only 475 units the previous year. By the end of 2023, the total number of EVs in the country reached 3,753. EPRA credits this growth to the implementation of the e-mobility tariff, a cut in the excise duty on electric vehicles from 20 percent to 10 percent, and the exemption of fully electric vehicles from value-added tax.
Electric Cars on the Rise
The electric car market is growing all over the world. In Kenya, more and more people are buying electric cars because of new policies that make them cheaper. With the increase in electric cars on the roads in Kenya, there will be a significant reduction in greenhouse gas emissions and air pollution. This will lead to cleaner air and a healthier environment for all Kenyan citizens. Additionally, the shift towards electric vehicles will help reduce the country’s dependence on fossil fuels and contribute to a more sustainable energy future.
Moreover, the growing electric car market in Kenya will also create new job opportunities in the renewable energy sector, as well as in manufacturing, maintenance, and servicing of electric vehicles. This will not only boost the economy but also promote innovation and technological advancement in the country.
Overall, the increasing popularity of electric cars in Kenya is a positive development that aligns with global efforts to combat climate change and transition towards a greener, more sustainable future. It is encouraging to see more people embracing this eco-friendly mode of transportation and taking steps towards reducing their carbon footprint.
