Higher EV prices in Egypt raise Price Index in June

From the newsletter

Consumer prices in Africa’s electric mobility sector have increased by 0.07% in the past month as measured by the change in prices in a representative basket of products. They include electric motorcycle and electric car prices, consumer financing costs and fees for powering options. Prices are collected by our data analysts in East, West, North and southern Africa.

• The Mobility Rising Price Index rose slightly in June from 1,003 to 1,003.7, mainly driven by increased EV prices in Egypt. Vehicle prices rose by 0.55% in the North African country, primarily due to increased demand.  

• The index also went up as a result of an increase in the prices of EVs and the cost of financing in South Africa. They rose by 0.18% and 0.13% respectively between May and June. 

More details

• In Egypt, prices for both electric scooters and cars went up significantly, with the price of the Yadea S-Pardus rising from EGP 61,747 to EGP 63,000 ($1,234 to $1,260), a 4% increase. Similarly, the Yadea Z3 climbed from EGP 36,000 to EGP 37,500 ($720 to $750), marking a 6.4% jump. The VW ID.6, a popular electric SUV, also rose by 4.3% from EGP 2,300,000 to EGP 2,350,000 ($46,000 to $47,000).

• There was a general increase in the cost of EVs in South Africa, even though a few models saw prices decline. The Ultra Scooter Stealth Rider saw a 2% price drop, falling from ZAR 68,000 to ZAR 64,700 ($3,808 to $3,623). On the other hand, Volvo, the country’s best-selling electric car, raised the price of its EX30 model from ZAR 775,900 (about ($44,450) to ZAR 785,000. 

• In Kenya, interest on loans to purchase EVs remained largely unchanged between May and June. The interest rate charged by M-Kopa for electric motorcycles kept steady at between 28% and 44% while Watu Credit charges between 32% and 36%. However, major banks like NCBA raised interest from 18% to 18.5% and KCB from 17.5% to 18%. 

• When it comes to charging, South Africa’s Rubicon retained prices in June, charging $0.45 per unit at its DC fast chargers, and $0.33 at its slower AC chargers. GridCars also kept prices unchanged, charging $0.4 at its DC chargers and $0.32 at its AC chargers. The prices charged by Maxio, another South African charging company, are the same as those charged by GridCars.

• In Nigeria, prices of vehicles, the cost of financing and the cost of charging remained largely unchanged. Interest rates on EV loans are also expected to remain stable following the Central Bank of Nigeria’s decision to hold its benchmark interest rate at 27.5% last month for the second consecutive time. 

• Overall, the index shows that it is becoming more expensive to own an EV in Africa’s leading countries as prices of buying an EV, charging it and paying loans rise. In the coming months, a number of factors such as demand,  local taxes, competition, and other local and international factors will continue to have the biggest say on prices. 

Our take

• While overall EV adoption will continue due to long-term cost benefits, the rising prices in key markets like Egypt and South Africa, particularly for electric cars and financing, might temper the pace of adoption in the short term.

• The increasing cost of financing in markets like South Africa, and consistently high interest rates in Kenya, highlight a significant barrier to EV ownership. Financial institutions should innovate and offer more accessible and affordable financing options specifically tailored for EVs. 

• Considering the increased DC fast charging costs in some markets in Africa, there should be a greater emphasis on AC chargers for overnight charging at homes and workplaces, potentially leveraging renewable energy sources and lowering costs.