The influx of cheap Chinese EVs will likely slow down

July 07, 2025

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China, the world's largest manufacturer of electric vehicles, has introduced stricter regulations for used car exports, targeting the growing trade in zero-mileage vehicles being sold abroad as second-hand cars. Many of these new “used” cars are being increasingly brought to Africa by Chinese EV companies and are comparatively cheaper than other brands. 

  • EV manufacturers in China have been overproducing cars to claim state subsidies, then sold the cars abroad as used vehicles at cut prices. Closing this loophole will reduce production of cheap EVs.

  • Africa could suffer the most from China’s policy move. EVs from Chinese companies have started to flood the market.  

  • Our take: Africa should brace for a drop in the supply of low-cost Chinese EVs and a potential increase in prices… Read more (2 min)

Chinese EV manufacturer BYD led in new energy vehicles sales in June 2025 in Egypt, according to the Egyptian Compulsory Vehicle Insurance Pool. BYD sold 137 of the 619 electric cars acquired in that month. The report shows that BYD is in direct competition with Zeekr and Volkswagen, indicating Egyptian buyers are open to Chinese EV technology. 

  • Other Chinese brands are also making significant inroads. Leading models like Xpeng, Avatar and Zeekr are competing directly with global giants such as Volkswagen, Mercedes, BMW and Nissan.

  • In the motorcycle sub-sector, most completely knocked-down (CKD) kits are sourced from China or India, the data shows. These countries also dominate the electric three-wheeler market in Africa.

  • Our take: BYD’s sales in Africa are expected to outpace those of its competitors… Read more (2 min)

Investment raised by mobility startups in Africa reached $27.8 million in June, according to data from The Big Deal Africa. This is an increase from the $26.5 million funding that the sector raised in May, and marks the second consecutive increase in monthly funding figures. It brings the total haul for the first half of 2025 to $110.9 million.

  • The funding raised in the first half of 2025 is 49% lower than the funding raised in the same period in 2024.

  • June funding was concentrated in East Africa and southern Africa, with South African firms contributing 56.4% and Kenyan startups contributing 41.3%. The remainder was raised by an Egyptian startup. 

  • Our take: African mobility startups are still heavily dependent on foreign capital… Read more (2 min)

Dodai’s manufacturing manager Abiero Origa (in orange hoodie) showcases their technology to investors

 

Events

🗓️ Register for E-Mobility Masterclass webinar (July 10)

🗓️ Attend public transport electrification in Africa webinar (July 23)

🗓️ Book a slot at the Africa E-Mobility Week hosted in Ethiopia (Oct 14)

Jobs

💼 Become a Financial Reporting Analyst at MAX (Nigeria)

🔎 Join Dodai as a Quality Assurance Supervisor (Ethiopia)

👨🏻‍💼 Apply for Senior Strategy Manag`er’s role at M-kopa (Kenya)

Various 

🏍 Roam and Keep It Cool partner to start an all electric cold chain delivery service in Kenya

🤑 BMW sales decrease in South Africa

🏆 Spiro wins EV Champions of the Year Award

Seen on LinkedIn 

Godfrey Katiambo, Founder and CEO at INNO-NEAT Energy Solutions, says, “Investors should direct capital toward startups and infrastructure projects that make circular battery use economically viable.”