[News] Chinese EV Makers Shift to Africa Amid US and EU Import Restrictions

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According to a report by Commercial Times, citing South China Morning Post, as the U.S. and EU intensify sanctions on Chinese electric vehicles (EVs), Chinese EV manufacturers are shifting their focus to Africa, accelerating efforts to establish flagship stores and assembly plants across the continent.

In 2023, Chinese new energy vehicle exports to Africa saw year-on-year growth of 291%, as noted by the report. Chinese-made electric buses are now a common sight on roads in countries such as Ethiopia, Kenya, Rwanda, and South Africa.

The report points out that Egypt, located at the crossroads of Asia, Africa, and Europe, has become a key destination for Chinese investment, with companies like BAIC Group and Geely Auto’s premium EV maker Zeekr recently announcing plans to enter the market.

For Chinese companies looking to expand into the Middle East and Africa, Egypt is a strategic location, as indicated by the report. By the end of 2025, BAIC Group’s assembly plant in Egypt is expected to produce 20,000 EVs annually. The report notes that this figure is projected to increase to 50,000 units annually within five years of operation, under the company’s agreement with Alkan Auto, a subsidiary of Egypt’s EIM Group.

In addition to meeting domestic demand, BAIC’s plant will leverage Egypt’s geographic position at the intersection of Asia, Africa, and Europe to export vehicles to other African nations and the Middle East. The report highlights that a key advantage is the Suez Canal, which handles over 10% of global trade annually, connecting the Mediterranean and the Red Sea, and providing the shortest maritime route between Asia and Europe.

Meanwhile, Zeekr, another Chinese EV brand, has announced plans to enter the Egyptian market by the end of this year, as noted by the report. The company has signed a distribution agreement with EIM Group to establish a sales and service network in Egypt.

In addition to its strategic location, the report highlights Egypt’s low labor costs as a key advantage. Wages in Egypt are approximately half those in Morocco and lower than in South Africa. Moreover, Egypt’s abundant sunlight makes it an ideal site for renewable energy-focused assembly plants. Its inclusion in the African Continental Free Trade Area and its proximity to high-income markets in the Middle East and Europe further strengthen its appeal, as the report indicates.

Beyond Egypt, Chinese automakers are making significant inroads into African markets. Chery, for instance, is planning to establish an assembly line in Kenya, a plan likely made before the EU’s announcement of additional tariffs on Chinese EVs in July. Meanwhile, according to the report, BYD and XPeng have expanded into countries such as Morocco, Kenya, Rwanda, and South Africa.

The report points out that in September, BYD introduced three EV models in Kenya, following recent launches in Zambia and Madagascar, expanding its footprint to 12 African markets.

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(Photo credit: BAIC)