German firms dominate Egypt’s electric car sales

From the newsletter

erman car manufacturers Mercedes-Benz, Volkswagen and BMW contributed 42% of Egypt’s electric car sales in January 2025, highlighting their growing influence in the North African country. The firms cumulatively sold 268 electric cars out of a total of 637 cars that were sold in the period, during which demand for EVs soared.

• January’s electric car sales already equal 22% of the 2,938 electric car sales that Egypt managed in the entirety of 2024. Should the sales continue at this pace, the North African country will record more than 7,000 new electric car registrations in 2025.

• But the German carmakers are facing a major threat from Chinese automakers. China’s BYD, the world’s largest EV firm, has already surged to become the joint largest electric car seller in Egypt (BYD and Mercedes-Benz both sold 127 units in January).

More details

• The top two selling electric car brands were Mercedes-Benz and BYD, which sold 127 units followed by Volkswagen, which sold 100 units. BMW sold 41 electric cars, while Swedish carmaker Volvo sold 27 units. Xpeng, a Chinese manufacturer, sold 18 cars.

• Mercedes-Benz and BMW, being luxury brands, primarily target the higher-end segment of the Egyptian market. The former’s electric models being sold in the country include the Mercedes-Benz EGQ, EQB, EQE and EQS while the latter’s are the BMW iX and iX3. Volkswagen, a mass market brand, rides on its ID series.

• BYD currently has the largest lineup of EVs in Egypt, ranging from the lowest-priced models to more expensive options. They include the Atto 3, Dolphin, Han, Seagull, Seal, Song Plus, Song L and Tang. Its Chinese counterpart, Xpeng Motors, launched in Egypt in June, 2024, with the introduction of the P7 sedan and G9 SUV. 

• The higher electric car sales in January indicate that this year could see a record number of EVs sold in the North African country. Demand for EVs in Egypt has been growing rapidly in recent years. Egyptians bought 2,938 EVs in 2024, nearly doubling the country’s count to 6,150. However, it is still a drop in the ocean in a year when 102,200 vehicles were sold.

• The increased demand for EVs in Egypt has been driven mainly by a steady decline in overall prices. The introduction of cheaper models by automakers such as BYD has also improved the affordability of these vehicles. Further, the country has made great strides in increasing the presence of charging stations, led by companies like Infinity EV. 

• The competition in Egypt’s EV market is getting hotter by the day, which could help reduce prices further. A number of new brands have launched in Egypt recently, targeting various market segments. The Porsche Macan 4 Electric and Zeekr 001 launched in Egypt last month, both targeting the high-end market. The country is also preparing to launch its first locally made EV in May. 

Our take

• The dominance by German electric cars in Egypt faces an imminent threat from cheaper Chinese brands, especially BYD. What should worry them more is that BYD is introducing EVs in all segments of the market, including the luxury segment where the German brands dominate. The introduction of the BYD Dolphin Mini, which goes for less than $10,000, will shake things further. 

• Egypt's economy is in a phase of gradual recovery, with growth projected to average around 4% in the fiscal year 2025. This has partly contributed to the surge in demand for EVs. The economy is likely to trend positively in the short-term, which creates a good environment for EVs to thrive.  

• A first ever local electric car is set to be launched in May. Demand for this car is likely to be high considering that the Egyptian government has offered subsidies of up to $2,500 for buyers. Once it is made available for purchase, we could see it command a significant market share quickly.