BYD enters first market in Central Africa

June 09, 2025

From the newsletter

Chinese electric vehicle manufacturer BYD has officially entered Gabon, its first market in Central Africa. The company is now in 16 African countries, the highest of any EV company. Loxea, a subsidiary of CFAO Mobility, will serve as BYD’s dealer in the Gabonese market. BYD has introduced three EV models in Gabon: the Atto 3, Song Plus DM-I and Tang.  

  • At the current rate of expansion, BYD could be in at least half of African countries in the next one year. BYD currently manufactures some of the cheapest electric cars in the world. 

  • BYD is also in Benin, Nigeria, Morocco, Tunisia, Rwanda, Côte d'Ivoire, Senegal, Kenya, South Africa, Ethiopia, Zimbabwe, Zambia, Madagascar, Mauritius and Réunion. 

More details

  • BYD’s entry into Gabon continues its rapid continent-wide expansion, launching in more than a dozen markets in just a few years. While the company’s initial focus in Africa was on electric buses starting way back in 2012 in South Africa, it has focused on electric cars in recent years. Its main models are the Atto 3, Seal and Dolphin models, which it has launched in multiple African markets.

  • The company has been strategic in its expansion by starting with markets that have the highest demand for EVs. Its strategy is to quickly gain market share ahead of its competitors in these key markets. To pull this off, BYD is betting on its lower pricing and wide network of dealerships to increase sales in Africa.

  • This comes at a time when the US and China are in a major war of tariffs. The tariff fallout has restricted Chinese goods from the lucrative US market. As a result, BYD and other Chinese firms are looking for alternative markets, and Africa is showing significant potential.

  • BYD is also waging a price war, temporarily cutting prices on 22 EV models by up to 34% to beat competition. Its lower pricing, thanks to its huge scale and generous state subsidies, has made it the world’s largest seller of new energy vehicles (including hybrids), and only behind Tesla when it comes to pure EVs.

  • One of BYD’s biggest markets in Africa is South Africa. The company is aggressively expanding their dealership network in the country from around 13 dealerships currently, aiming to have about 20 by the end of 2025 and 30-35 by 2026.

  • Despite not being a standout name, it is easy to see why BYD launched in Gabon. The Central African country, with a population of 2.5 million, has one of the lowest EV penetration rates in Africa. The country imported just eight electric cars from China, the world’s biggest EV manufacturer, in 2024. Going there first will enable BYD to entrench its position before others launch.  

  • Convincing Gabonese citizens to switch to EVs will however not be easy. Known for its oil wealth, Gabon has one of the cheapest fuel prices in Africa. It means that cost savings from switching to EVs will not be as great as in countries with high fuel prices.

  • The Gabon government is however trying to encourage the adoption of EVs. For instance, EVs in Gabon are exempt from motor vehicle tax until the end of this year, and may be eligible for additional tax incentives. Additionally, they are exempt from vehicle registration tax and performance-based insurance premium tax.  

Our take

  • BYD's expansion will put immense pressure on other EV manufacturers and even traditional ICE carmakers to lower their prices or risk losing market share. This could lead to a faster consolidation of the African EV market, with it emerging as the dominant player due to its affordability and expanding network. 

  • The availability of more affordable EVs, coupled with governments like Gabon offering tax incentives, could accelerate EV adoption across the continent, even in countries where the immediate cost savings on fuel might be less pronounced. 

  • While BYD is currently focused on imports and distribution, its rapid scaling and the increasing geopolitical pressures (like the US-China tariff war) could eventually push it towards local assembly or even manufacturing in Africa. Markets like South Africa, with its existing automotive industry, or Morocco, with its burgeoning EV ecosystem, would be prime candidates.