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Why some African car makers have to look for new markets

April 01, 2025

Motor vehicle imports into the US face a 25% tariff imposed by President Donald Trump starting tomorrow, which could have major ripple effects on Africa, particularly South Africa and Morocco. South Africa earned $1.52 billion from vehicle exports to the US in 2023, followed by Morocco with $152 million. Trump's tariffs will make their vehicles costlier.  

  • The tariffs also affect auto parts imported into the US. Trump claims the tariffs are aimed at protecting America's domestic automotive industry, which he argues has been undermined by excessive imports. He believes these tariffs will strengthen the US’s manufacturing sector and reduce reliance on foreign supply chains.

  • The US was South Africa’s sixth biggest export market for light vehicles in 2023, with a volume of 19,590 units. Germany is South Africa’s biggest vehicle export market, having bought 85,776 units in the same year, followed by the UK, which purchased 80,550 units.

  • Our take: Africa’s car makers will have to aggressively look for new markets for their vehicles both within the continent and outside to lessen the impact of the US tariffs… Read more (2 min)

Volvo’s EX90, an electric luxury SUV, has officially launched in South Africa, its first market on the continent. The car, introduced to consumers last week, is set to hit local dealerships this month. It has a 111 kWh battery with a range of 604 km and is priced at $144,287. It seeks to replicate the success of the Volvo EX30, the most sold EV in the country. 

  • The entry of the seven-seater EX90 heats up competition in the luxury electric SUV market in South Africa, which continues to attract new brands. Other brands in this market segment include the Volvo XC40 Recharge, Volvo C40 Recharge, Mercedes-Benz EQB, Mercedes-Benz EQS SUV, BMW iX, Audi e-tron, and the Jaguar I-Pace. 

  • Volvo, particularly Volvo Trucks, has a significant presence in several African countries, including South Africa, Kenya, Uganda, Tanzania, Morocco, Algeria, and is expanding its operations in the region. The launch of the EX90, which entered production in May 2024, in South Africa paves the way for its introduction in other countries on the continent.

  • Our take: Volvo’s expansion of its lineup of electric SUVs, fully incorporated with top-of-the-range technology and competitively priced, puts it in a strong position to compete with emerging competitors from China… Read more (2 min)

African mobility startups raised $5.7 million last month, marking a sharp decline from the $39 million secured in February. The majority of this funding went to East Africa with $5.2 million, a rebound after a subdued performance since the beginning of the year. West and southern Africa followed far behind with $0.3 million and $0.2 million respectively.

  • The $5.7 million raised in March 2025 is significantly below the monthly average of $22.6 million in 2023 and $24.2 million in 2024, highlighting a notable slowdown in investor activity.

  • In March 2025, funding was evenly spread across venture rounds, grants and a seed round, contrasting sharply with a high volume of debt funding in 2023 and 2024. 

  • Our take: Investors focused on early-stage startups last month, marking a sharp turn from February’s focus on later-stage deals and financial maturity, reflecting perhaps an increased risk appetite among investors… Read more (2 min)

Judith Nayiga (2nd from left) technical director of Uganda’s electricity utility, pose after a panel discussion in South Africa

 

Events

🗓️ Register for EV charging webinar hosted by Schneider Electric (April 29)

🗓️ Explore EV technologies at AfriFueling Expo in Kenya (May 6)

🗓️ Join EV professionals at Smarter Mobility Summit in South Africa (Sept 30)

Jobs

👷🏻‍♂️ Become a civil engineer at Charge (South Africa)

👷🏻‍♂️ Lead payroll and employee relations at Shift EV (Egypt)

👷🏻‍♂️ Join the fleet operations team at MAX (Nigeria)

Various 

🤝 Ampersand wins Best Growth Venture Award from NREL

🤝 SHOVeBIKE and Bazz E-Bikes partner to boost sustainable deliveries in S. Africa

🤝 Check out the best-sellers as South Africa's new-car sales surged in March

Seen on LinkedIn 

Gregor Paterson-Jones, says, ”Some real numbers in the African electric bus market are starting to come through. The order books get very chunky quickly after pilots prove their worth.”