Jetour, a sub-brand of Chery, is believed to be about to make its debut in the South African market but not as part of Chery South Africa, rather being independently imported and distributed with its own dealer network.
Details are sketchy now, but significant considering the recent opening of the Jigjiga, Ethiopia assembly plant where Jetour is assembled. While Ethiopia is a left-hand drive market, this facility may well have the capability to assemble vehicles for other markets in Africa, including South Africa.
With battery production coming on line in Morocco, the hiatus caused by the election buildup in South Africa has further pushed back the progress that should be in full flight in terms of the country leveraging natural resources and becoming a significant finished product supplier instead of just raw materials.
Although some concessions in terms of taxes have been announced for automakers converting their facilities to manufacture or assemble electric vehicles, nothing is on the cards for embattled consumers – so the exorbitantly high cost of battery electric vehicles (BEV) is still extremely slow and limited.
However, the industry continues to move ahead in this regards and Daimler Truck recently launched electric versions of the Actros and Canter.
Africa, it self, is responding and recently Pan-Africa electric vehicles company Spiro, operating in Kenya, secured a $50-million loan from the African Export-Import Bank (Afreximbank) to expand its operations across the continent.
Spiro specialises in electric motorcycles and this latest move follows a $63-million loan from Societe Generale in August last year, aimed at expanding its presence in Togo and Benin.
Spiro, established in 2019, now manages more than 600 EV battery swapping stations in Kenya, Benin, Togo, and Rwanda. In February, Spiro revealed a partnership with oil marketing company Petrocity to set up battery swapping stations at Petrocity’s outlets, underscoring its focus on expanding in Kenya.
According to Afreximbank Executive Vice President Intra-African Trade Bank Kanayo Awan:, “The future of transportation lies in the use of electric vehicles and as demand for clean energy solutions soars, support towards companies like Spiro is crucial for accelerating the adoption of electric vehicles and reduction of carbon emissions.”
This development occurs as EV companies in Kenya and across Africa strive to secure funding through a mix of debt and equity to support their growth. EV companies have been setting up local assembly lines to meet the increasing demand for electric motorcycles, passenger cars, and buses, while also establishing charging stations in key areas of Nairobi and planning to expand to other major cities to address the lack of infrastructure, a significant barrier to the adoption of e-mobility.
However, the Kenyan government is set to present a Finance Bill that will introduce a value-added tax (VAT) on electric bikes, buses and solar and lithium-ion batteries. This proposal has raised concerns among industry stakeholders, including the Nairobi-based Associated Battery Manufacturers (ABM), who worry that the tax could substantially increase the cost of solar batteries. A 60-kilogram solar battery’s price could rise by $312 (45,000 Kenyan shillings) due to the tax.
While Kenya considers imposing an EV tax, other nations are encouraging the adoption of electric vehicles through different measures. For instance, Tunisia announced in 2023 it would offer tax breaks and purchase incentives to boost its EV sector, aiming to reach a fleet of 130 000 electric vehicles by 2030 as part of its broader environmental and energy sustainability goals.
Hugely significant is the battery swop programme. While motorcycle battery packs carry far less voltage than those in cars and trucks, the ideal electric scenario would be a safe system of ‘hot swopping’ that would allow users to get a fully-charged battery pack in around the same time as it takes to fill up at a fuel pump.
South Africa is ideally poised to be a front-runner in this and other innovations in the move to electrification but the slow responses – and often lackadaisical attitude of government means the country is falling further behind; and fast.
The slender threads holding the auto industry together are in grave danger of unravelling and all the good work done by the African Association of Automotive Manufacturers (AAAM) in conjunction with Afreximbank and via the Intra Africa Trade Shows to promote and urge Africa to adopt the AfCTA could end up being undone.
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