Industry Trend Analysis - Affordability And Infrastructure Threaten EV Plans - JAN 2018
BMI View : Energy Co-Invest Corp ' s plans to assemble electric vehicles in Ethiopia will be marred by twin challenges in the form of low income levels and an erratic electricity supply. That said, announcements into domestic alternative fuel vehicle assembly have the potential to make the country a regional electric vehicle manufacturing hub in the future.
In November 2017, Energy Co-Invest Corp, a Toronto-based developer and financer for energy and infrastructure projects, announced that it has chosen Ethiopia as the first African destination for its electric vehicle (EV) assembly and inductive charging stations. Energy Co-Invest Corp will join Global Electric Transportation (GET), which announced plans to start EV manufacturing locally in September 2015, and Freestyle PLC, which began domestic production of two versions of the Solaris Elettra EV in Ethiopia in 2010.
However, we believe that low income levels and an erratic power supply will prevent the EV market from taking off in Ethiopia. These factors will therefore pose significant headwinds that Energy Co-Invest Corp will have to overcome in order to achieve its ambitions of starting EV assembly in the country.
|Affordability Issues Will Hamper EV Market Development|
|Ethiopia & SSA Region - Autos Sales Risk/Reward Index By Component|
|Note: Scores out of 100; higher score = more attractive market. Source: BMI Autos Sales Risk/Reward Index|