Alibaba-backed Chinese EV firm enters Africa

September 22, 2025

From the newsletter

Chinese EV company IM Motors, a joint venture between SAIC Motor and Chinese technology companies Alibaba Group and Zhangjiang Hi-Tech, has entered Egypt, its first market in Africa. The company has introduced the IM5 sedan, IM6 compact SUV, and the LS7 luxury mid-size SUV to the Egyptian market. The prices of the electric cars range from $38,400 to $58,100. 

  • IM Motors joins BYD, Xpeng, Dongfeng and Zeekr as the main Chinese brands that have launched electric cars in Egypt. GWM has introduced hybrids, while Changan and Geely have announced plans to introduce electric cars to the market. 

  • Its entry into Egypt highlights Egypt’s growing status as a leading EV market in Africa, competing with established giants like South Africa. This comes as a growing number of EV companies are making North Africa their first port of call in the African market.  

More details

  • The IM5 belongs to the mid-size sedan category and is available in three different versions: the Ultra Efficiency priced at $39,443, with a 75 kWh battery that provides a range of 570 km. The Ultra Range costs $46,709 and has a 100 kWh battery that provides a range of 820 km, the highest among all the models. The Ultra Performance (all-wheel drive) is priced at $50,861.

  • The IM6 compact SUV comes in two trims: the Ultra Efficiency priced at $43,595, with a range of 520 km with a 75 kWh battery, and the Ultra Range priced at $50,861, with a 100 kWh battery with a range of 730 km. Meanwhile, LS7, a mid-size SUV that was offered in one trim: The all-wheel drive Ultra Performance that is priced at $58,127, with a 100 kWh battery that offers a range of 610 km. 

  • IM Motors operates in more than a dozen countries globally. The company’s early models like the IM L7 and LS7 had price points in China that targeted high-income buyers, though its later models like the LS6 have expanded the market to appeal to a wider range of high-tech consumers. The three models it has introduced in Egypt cover different market segments. 

  • It is just the latest in an expanding list of Chinese companies that have identified Africa as a key growth market amid restrictions in key global markets like the US and Europe. BYD has already entered more than 17 African countries, while the likes of Xpeng, Zeekr, Dongfeng, Chery and Geely are also introducing their own EVs to the continent.

  • This week, another Chinese EV manufacturer, Jinxiu Shanhe Automotive, also signed an agreement with a Moroccan company for the export of 500 electric utility EVs - the first phase of a broader program totaling 20,000 units. Alongside this initial contract, the two parties reached a strategic agreement to establish a CKD (Completely Knocked Down) assembly plant in Morocco, a move that will solidify its expansion into North Africa.

  • The entry of more Chinese EV companies is expected to accelerate the growth of Africa’s emerging EV market, which is projected to grow from an estimated $0.45 billion in 2025 to $4.2 billion by 2030. While this growth will mainly be driven by automotive giants like South Africa, Egypt and Morocco, emerging markets like Nigeria, Ghana, Kenya and Ethiopia are expected to play a bigger role in EV adoption on the continent in the coming years. 

Our take

  • The agreement between Jinxiu Shanhe Automotive to establish a CKD assembly plant is a strong signal that Chinese companies will increasingly move from simply exporting finished vehicles to setting up local production facilities. This strategy will allow them to circumvent import tariffs, reduce costs, and more effectively compete on price.

  • The success of Chinese EV brands in Africa will increasingly depend on their ability to partner with local entities. These partnerships will not only facilitate market entry but also help address key challenges like building out charging infrastructure, providing after-sales service, and offering financing solutions tailored to the local consumer.

  • The significant growth projected for the EV market in Africa requires a corresponding build-out of a reliable charging network. This should just be left to the private sector. As Rwanda has shown, supportive incentives can enable EV companies to roll out charging stations faster to support adoption.