Here is the total cost of an electric motorcycle

From the newsletter

Owning an electric motorcycle in Malawi is 20% cheaper than owning a petrol-powered equivalent over a five-year period, according to a new report by the World Bank. The report reveals the Total Cost of Ownership (TCO) of four electric-vehicle categories in the southern Africa nation, namely two-wheelers, three-wheelers, passenger cars and minibuses. 

• The TCO includes the initial purchase price, energy costs, maintenance, insurance, and depreciation. The World Bank’s findings show that it is already economical to own an electric motorcycle in Malawi compared to an ICE motorcycle at market prices. 

• The case for EV ownership in Malawi is especially strong as the country not only has costly fuel prices but also regularly experiences fuel stockouts due to forex shortages. This makes EVs an attractive alternative to customers. 

More details

• According to the report, electric motorcycles are the only category of EVs that are cheaper to own than their ICE equivalents in Malawi. With government subsidies, electric motorcycles are 27% cheaper than petrol motorcycles. The World Bank also projects that the two-wheeler market is set to grow by 6.9% annually, the fastest of any vehicle category in the country.

• Due to the high prices of electric motorcycles, a growing number of Malawians prefer to convert their existing petrol-powered motorcycles to electric ones. SGV Electric Mobility is the leading company doing conversions of fuel motorcycles in Malawi but seeks to expand by assembling electric motorcycles locally. 

• Electric three-wheelers remain more expensive to own than fuel-powered three-wheelers over a five-year period, the report shows. At market prices, the former cost 2% more than the latter. However, with the support of subsidies, owning an electric three-wheeler becomes more economical than a fuel three-wheeler by 14%.

• For electric passenger cars, the gap in the cost of ownership is bigger compared to ICE passenger cars. The report shows that without subsidies, the cost of owning an electric passenger car is 86% higher compared to an ICE passenger car over a ten-year period. 

• The most expensive category of EVs highlighted in the report are minibuses. It shows that at market prices, an electric minibus costs 120% more than a fuel minibus. When you factor in potential subsidies, this would reduce marginally to 112%.

• “Minibus EVs (with or without incentives) are significantly expensive compared to widely adopted used ICE minibuses. This is largely caused by the significant purchase price of an electric minibus and the associated fast charging infrastructure costs, among other factors,” said the World Bank.

• Malawi has a small motor vehicle market, with an estimated 271,000 vehicles on the country's roads in 2024. Based on historical sales figures, this is expected to grow by 2.8% annually. However, the penetration of EVs in Malawi is low, mainly due to affordability challenges. According to the World Bank, incentives would play a key role in improving the financial appeal of EVs to Malawians.

Our take

• To bridge the affordability gap, the Malawian government should offer purchase incentives, tax waivers, and low-interest loans—especially for commercial motorcycle operators and delivery fleets who stand to benefit most from lower operating costs.

• Malawi should support SGV Electric Mobility and similar players to expand local assembly of electric motorcycles and formalize conversion services. This would reduce costs, create jobs, and build technical capacity within Malawi’s borders.

• It should also focus first on electrifying two- and three-wheelers where the economics are already favorable, while laying the groundwork regarding infrastructure, policy, financing for future adoption of electric cars and minibuses.