Electric car prices fall in Kenya

From the newsletter

The price of BYD Atto 3 in Kenya dropped by 11.8% in September from August, according to an analysis of electric car prices carried out by Mobility Rising. The price of BYD Dolphin fell by 11.6%, and the BYD Seal by almost 2%. Similarly, the price of the Neta V declined by 1.5%. Kenya recorded the highest volatility in prices compared to South Africa, Egypt, and Nigeria. 

• Mobility Rising monitors monthly price changes for over 24 electric vehicles across Africa — Nigeria, South Africa, Kenya and Egypt are included in the analysis as leading markets for EV activity.

• BYD has embarked on an aggressive price cutting drive globally to grow sales. In Egypt, however, EV prices continue to rise despite increased competition, reflecting a particular market ecosystems.

More details

• In Kenya, the BYD Atto 3 recorded the sharpest price drop, falling 11.79% from KES 9,140,000 ($70,854) to KES 8,062,000 ($62,465). The BYD Dolphin followed, dropping from KES 7,251,000 ($56,202) to KES 6,407,000 ($49,669), while the premium BYD Seal decreased slightly from KES 11,200,000 ($86,821) to KES 10,996,000 ($85,271). The Neta V from Moja EV saw the smallest drop of 1.5%, from KES 4,500,000 ($34,884) to KES 4,430,000 ($34,341), remaining one of the most affordable new electric four-wheelers available locally.

• All tracked EV models in Egypt remained stable this month after they rose in price last month, with a 4% increase. The price hikes are mostly from electric scooters. For example, the Yadea Z3 increased by 3%, from EGP 39,000 ($813) to EGP 40,200 ($838) this month. This upward trend suggests strong demand and a promising business case for electric scooters.

• Price movements in South Africa remained minimal. In the two-wheeler segment, Ultra Scooter’s electric motorcycle rose by 1.5%, from R64,700 ($3,684) to R65,700 ($3,742). In the four-wheeler category, the MG Cyberster dropped by 0.7%, from R1,410,000 ($80,321) to R1,400,000 ($79,755). Overall, the South African EV market is stable.

• No significant price changes were recorded in Nigeria this month, with EV prices remaining the same as last month. This stability reflects a relatively steady competitive landscape, where the number of EV models in the market has not shifted significantly in recent months.

• Plug-in Hybrid Electric Vehicles (PHEVs) are increasingly competing with Battery Electric Vehicles (BEVs) in Kenya and South Africa. Their lower cost and greater affordability are attracting buyers away from BEVs, a trend that could influence future pricing strategies for fully electric models. Additionally, PHEVs may appeal to consumers concerned about charging infrastructure limitations.

Our take

• PHEVs are emerging as a significant threat to BEVs, attracting price-sensitive buyers who prioritise flexibility. In some markets, BEV prices have remained static for long periods, and strategic price cuts could help regain competitiveness.

• Well-designed policies could help narrow the price gap between BEVs and PHEVs, making full electrics more appealing. For example, Rwanda reintroduced VAT on PHEVs to limit their uptake and encourage a shift towards BEVs.

• Automakers and dealers could introduce promotional financing, trade-in bonuses, or bundled charging solutions to make BEVs more attractive. These incentives could address both cost concerns and infrastructure barriers that currently favour PHEVs.