Huawei-backed Chinese luxury EV firm enters Africa

From the newsletter 

Chinese luxury electric vehicle manufacturer Avatr Technology has signed a distribution agreement with Egypt's Kasrawy Group, marking its first entry into Africa. Avatr is backed by state-owned Changan Automobile, battery giant CATL and tech group Huawei. It plans to officially launch its brand and introduce its vehicles within the next three months. 

• Avatr is the latest Chinese company to enter Africa, underlining China’s growing dominance of the continent’s emerging EV market. BYD is in 17 African countries, while other Chinese EV firms like Xpeng, Dongfeng and Zeekr have already launched in several markets. 

• The entry into Egypt comes after the company recently launched in the UAE, Qatar and Jordan. Egypt could serve as its launchpad into other African EV markets such as Morocco, South Africa and Ethiopia. 

More details

• Founded over 40 years ago, Kasrawy Group is one of Egypt's leading automotive companies, representing brands including Audi and Jaguar Land Rover. The company accounted for about 20% of Egypt's passenger car market in 2024, Avatr said in a statement. Kasrawy aims to position Avatr as a high-end EV brand in Egypt, leveraging its local operating experience.

• Avatr said it now has a presence in 25 countries and regions, with 55 signed dealership locations. It plans to cover 50 global markets by the end of 2025 and enter Europe in 2026. In China, it operates more than 700 outlets across 200 cities. 

• The EV manufacturer has launched the Avatr 11, 12, 07, and 06 models in domestic and select overseas markets, offering both sedans and SUVs. Its vehicles integrate Huawei's intelligent systems and CATL's battery technology. Their prices in China range from $32,000 to $92,000, but the market price in Africa is likely to be at least twice as much. 

• Avatr will face fierce competition in Egypt’s increasingly competitive EV market, both from Fellow Chinese brands as well as established German car manufacturers. For years, German giants Volkswagen, BMW, Mercedes-Benz and Porsche have dominated Egypt’s luxury EV market. However, newer brands like China’s Zeekr, Aito and Nio have penetrated the market and are becoming popular. 

• China is producing more EVs than its domestic market can absorb. Factory overcapacity and slowing local demand are prompting automakers to aggressively seek export markets. But Chinese EVs are facing tariffs in their biggest foreign markets – the US and Europe – forcing them to look for alternative markets like Africa, South America, the Middle East and Southeast Asia. 

• Africa’s EV market is growing fast, with sales more than doubling to 11,000 electric cars in 2024 compared to the previous year. This pace of growth is expected to continue as cheaper EVs, especially from Chinese brands like BYD, flood the market. However, the majority of electric car sales are concentrated in a handful of countries, mainly South Africa, Egypt, Ethiopia and Morocco. 

Our take

• Egypt’s luxury EV market will see intense price and tech-based competition as Avatr, Zeekr, Aito, and Nio challenge entrenched German brands. Avatr’s use of Huawei's tech and CATL’s batteries could help differentiate its offerings in smart features and range. 

• Avatr’s move signals a deeper Chinese push into African EV markets—expect more distribution deals, local assembly plans, and partnerships in key markets like South Africa, Ghana, and Kenya by end-2025. 

• Rapid EV adoption is set to push African governments to scale up charging networks, reduce tariffs, and offer more EV incentives. Public-private partnerships could accelerate, especially for urban infrastructure and energy supply resilience.