Summary
- Ethiopia was the first country to ban the import of internal combustion engine vehicles
- The motivation for the ban was to reduce a high fossil fuel import bill
- The ban has led to a surge in electric vehicle adoption in Ethiopia
- BYD has entered the Ethiopian market to distribute their electric vehicles
- BYD was the first company to sell over 500,000 electric vehicles in a single month
Article
Ethiopia made an unprecedented move by becoming the first country to ban the import of internal combustion engine vehicles, with a focus on reducing its high fossil fuel import bill and increasing energy security. The country aims to substitute a significant portion of its fuel imports with locally generated renewable energy from the Grand Ethiopian Renaissance Dam. This has resulted in a surge in the adoption of electric vehicles in Ethiopia, with a goal of having 500,000 EVs on the roads by 2030.
The ban on ICE vehicles, along with reduced import duties and taxes for electric vehicles, has led to a rapid increase in the population of EVs in Ethiopia. The country, with a low motorization rate, has seen a significant influx of electric cars, including used and new parallel imports from China such as the Toyota bZ4x, Mercedes-Benz EQ range, Kia EVs, VW’s ID.4 and ID.6, and the Changan Benben E-Star. Independent dealers have played a key role in bringing these vehicles to the country.
BYD, a major player in the electric vehicle market, has entered the Ethiopian market in partnership with Inchcape. This marks BYDs first distribution agreement in Africa and aligns with Ethiopia’s plan to increase NEV adoption. The partnership will offer customers a range of NEVs, along with value-added services like parts and after-sales support. BYD’s expansion into Ethiopia comes as the company continues to ramp up production of electric vehicles and expand its global reach.
BYD has been on a roll with the launch of several new models and hitting milestones, including being the first company to sell over 500,000 electric vehicles in a single month. The company’s entry into the Ethiopian market brings official vehicles with warranties and other benefits, compared to grey imports. The left-hand-drive orientation of Ethiopia, similar to China, allows for easier access to more affordable EVs like the BYD Seagull.
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