North Africa to produce nearly half of Africa EVs

From the newsletter 

Electric vehicle production capacity in Africa has risen by 22% over the past three months, increasing from 720,000 units annually to 880,420, though that includes completed as well as construction projects, an analysis by Mobility Rising shows. North Africa leads with 45% of the current capacity, driven by key production hubs in Morocco, Egypt, Algeria and Tunisia. 

• Chinese OEMs are ramping up investments in Africa, particularly in the north, with over 80% of developments driven by Geely, SAIC, BAIC, GWM, and Chery. Non-Chinese players such as Stellantis, Renault and Hyundai also maintain a significant presence in the region. 

• North Africa will anchor EV car production, supplying regional and export markets. Motorcycle production is more widely spread.  

More details

• Africa is building an annual EV and hybrid capacity of 930,420 units, with 581,500 units for cars alone. North Africa is leading, supported by large-scale manufacturing hubs in Algeria and Egypt. This shows a growing concentration of production in specific regions.

• EV-only car plants account for 281,500 units yearly, while hybrid plants produce 298,000 units. Of the EV-only capacity, 52,000 units are from assembly-focused companies, while 231,500 units are from manufacturing plants. This is the opposite of the electric motorcycle sector, which focuses more on assembly than manufacturing.

• Geely, SAIC, Chery, and BAIC dominate capacity in North Africa, with the top five manufacturing plants being Geely’s 50,000 units in Algeria, SAIC’s 50,000 units in Egypt, Geely’s 30,000 units in Egypt, Chery’s 24,000 units in Algeria, and BAIC’s 20,000 units in Egypt. The top four EV assembly companies include El Nasr Automotive in Egypt (20,000 units), Associated Vehicle Assemblers in Kenya (10,000 units), TAD Motors in Kenya (3,000 units), and SAGLEV in Nigeria (2,500 units). These companies are setting the pace for Africa’s EV future.

• Out of the 41 projects tracked, 21 are for EV car manufacturing and assembly. Of these, eight EV-only projects have been completed, eight are in progress (most in North Africa), three have stalled, and one is set to begin in 2026. This mix shows both momentum and delays in the sector.

• Assembly is expected to grow faster than manufacturing due to shorter build times. Manufacturing plants have been slower to complete, while assembly plants can be operational in months. The car industry could learn from the two-wheeler sector’s rapid rollout approach.

• Supportive policies remain a deciding factor for progress. Tax breaks, duty waivers, and budget allocations, such as Egypt’s EGP 3 billion ($ 61,850,000) fund for automotive localisation, signal commitment and attract foreign capital.

• To translate this capacity into vehicles on African roads, investment must extend beyond factories into charging networks, battery supply chains, and consumer financing. Coordinated efforts between governments and the industry private players could reduce end-user prices through targeted subsidies or tax rebates. 

Our take

• Africa’s EV capacity is expanding rapidly, rising from 223,500 units in May to 283,500 units in August for EV-only car plants. Most of these facilities are still under construction and are expected to come online within the next two years, meaning the market will continue relying on imports and second-hand EVs in the short term.

• The delay in price reductions is linked to several factors, including the pace of local manufacturing and assembly. Since building plants is highly capital-intensive, carmakers should prioritise partnerships and contract assembly over producing EVs entirely from scratch.

• Across the continent, state-backed EV projects are progressing slowly, while private sector players continue to attract FDI and boost assembly capacity. Governments should focus on enacting clear EV policies shaped by stakeholder input, leaving infrastructure rollout and operational expansion to the private sector.