The EV industry has experienced a varying growth wave over the last ten years. Between the years 2012 and 2018, the growth rate was between 46% and 69%. However, the global number of light electric vehicles in 2019 was only 9% higher than in 2018. Representing a notable decline from the previous years.
This move was caused by a drop in sales in the second half of 2019 in the two largest markets, China and the United States. Despite static growth in the two largest regions, global EV sales increased, thanks in large part to 44% growth in Europe.
2020 took a surprising turn. Despite a 16 % decline in global vehicle sales due to the pandemic, global EV sales increased by 41 %.
For the first time, Europe surpassed China as the worldwide centre of the electric vehicle market. The area saw 3 million electric vehicle sales, with registrations more than doubling to 1.4 million, while China’s grew to 1.2 million.
At the start of the year, amid COVID-19, the forecast for 2020 worldwide EV sales was fairly uncertain. However, as time passed, the year 2020 turned out to be generally positive, despite the pandemic and its consequences. Worldwide EV sales increased by 43% from 2019 to 2020.
The African market, however, is still finding its legs. Most African countries have even fewer electric vehicles on the road. This is due to the fact that used cars are the prevalent type of vehicle.
According to reports, Africa receives approximately 40% of global used vehicle exports. In particular, in Nigeria, Kenya, and Ethiopia, the proportion is estimated to be between 80 and 90% of total imported vehicles.
Nigeria has a long history with used automobiles, with the country serving as a hospitable destination for imports from many nations. Most people and companies only purchase secondhand or tokunbo automobiles, as they are known locally. Nigeria spent N1.08 trillion on Tokunbo automobiles and motorbikes between October 2018 and September 2019.
Tellingly, several African countries are making positive efforts to improve their vehicle situation, given the fact that African governments are more relaxed, in contrast to Europe, where government rules are compelling automotive markets to accept more climate-friendly solutions.
Cape Verde has started moves to phase out the sale of internal combustion engine automobiles, with the goal of eliminating such imports by 2035.
The beneficial impact policies designed and implemented in Mauritius demonstrated what may be done in other African countries. Lower import duties were given for all hybrid vehicles in contrast to conventional vehicles, resulting in a shift to more efficient autos.
The tax cut equates to a 30% decrease for hybrids, resulting in a 50% increase in used hybrid automobile imports between 2010 and 2017.
EV technology is rapidly improving, which means that efficiency, manufacturing quality, and driving quality are making EVs a real competitor to petrol and diesel vehicles for the first time.
It is estimated that over 6.4 million EVs would be sold globally in 2021, a 98 % growth over 2020, however, EVs are still in their infancy, with a relatively modest market share percent of total automobiles driven on the roads.
However, the enormous upside potential has piqued the interest of investors, particularly in light of the success of EV companies such as Tesla which is worth approximately higher than even the nine global auto competitors OEMs combined.
Addressing a decarbonization weight of responsibility that most leading nations now take seriously, 2021 was a watershed moment in the history of EV sales, with 6.4 million vehicles (EVs and PHEVs combined) estimated to be have been sold globally by the end of the year. It would then be a 98% gain year over year.
Africa’s Best Chance
Electric vehicles such as battery-powered cars, electric bikes, and electric tricycles are becoming more widespread in urban areas. Many experts believe that PTWs (Powered-Two-Wheelers) are among the most fuel-efficient vehicle options. For most users, the riding experience (noiseless, entertaining, and liberating) is the most appealing aspect of e-PTWs.
According to reports, two-wheelers present the best scenario for electrifying African roads. Two-wheelers are the most commonly purchased new vehicle segment in Sub-Saharan Africa. Switching to electric two-wheelers which have a lower TCO over time than ICE vehicles would serve the sector better in the long run.
Two-wheelers are employed for business transactions and commercial travel in many African cities today, more than in most other parts of the world. According to recent African sales trends, the continent’s two-wheeler sector could reach 10 million units during the next 15 years.
Some indigenous e-bike creators/manufacturers, including MAX, have been able to build industry-standard e-bikes that can compete with combustion engines in terms of performance. With these entities driving the production and Electric Powered-Two-Wheelers, Africa’s EV future looks more promising than ever.
