Blue EV launches operations in Egypt

From the newsletter

Electric mobility company Blu EV has launched operations in Egypt. The launch follows more than 2 years of pilot operations in the country. The company offers battery leasing services for electric motorcycles using pay-as-you-go pricing. Egypt’s electric motorcycle sales amounted to $237 million in 2023.

• Blue EV was founded in Egypt in 2022, aiming to take a pie of the expanding e-mobility market in the North African country. The company signed several Memoranda of Understanding (MoU) with key stakeholders in Egypt’s mobility space in preparation for the commercial launch.

• In 2023 for instance, the firm signed a tripartite MOU with the Arab Organization for Industrialization (AOI) and CHLORIDE Egypt S.A.E to localize the manufacture of lithium batteries and electronic control units for light EVs.

More details

• Blu EV offers a cashless and automated platform that offers different packages that provide numerous features for finance, insurance, and payment using the Blu EV e-wallet. The company has partnered with original equipment manufacturers (OEMs) of two and three-wheelers as well as battery manufacturers, who have been licensed with its technology to provide compatible products.

• The Blu EV platform offers its users multiple options for electrifying their vehicles, either by converting the ICE motorcycles or tricycles to EV or purchasing a brand new electric one. It also offers battery swapping services for EV users.

• Last year, Blu EV signed a collaboration agreement with Inde, marking the start of production for the first locally assembled electric motorbike in Egypt – the Pullman PM-EV. By the end of Q1 2025, Blu EV and Inde plan to have 2,000 units of the Pullman PM-EV available in the market.

• It also partnered with AOI Electronics Factory to introduce another locally assembled electric motorbike. The firm is planning to produce 5,000 units in 2025. “Looking ahead, 2026 will be a crucial year for the e-bike. We have laid out plans to begin the localization process in stages, starting with key components and gradually building a fully localized product,” said the firm.

• Egypt has one of the most vibrant EV markets in Africa. There are 16 EV startups in Egypt, which include Rabbit, Shift EV, Seavo, Electrified, Vesstoss. Out of these, 5 startups are funded, with 1 having secured Series A+ funding. Over the past 10 years, an average of 1 new company has been launched annually.

• In 2023, Swedish car manufacturer Volvo also signed a deal with Egyptian bus maker MCV to produce electric buses in Egypt for export to Europe. About 50% of each bus's components are manufactured locally as part of the deal. 

Our take

• Battery swapping has become central to Africa’s e-mobility transition. Increased availability of swapping stations is reducing range anxiety, giving more people confidence to buy EVs. Africa’s EV market is expected to have a CAGR of 8.95% between 2025 and 2029, resulting in a projected market volume of $314.2m by 2029. This means that demand for battery swapping services on the continent will only increase.

• Blue EV’s launch was preceded by numerous collaborations with a number of service providers with different expertise in the EV ecosystem. Collaborations and partnerships are essential for the success of the new energy vehicle industry. Combining the expertise of different companies and organizations can result in better technology and more efficient production processes.

• Egypt offers a number of incentives for e-mobility companies. These incentives include tax reductions, customs duty exemptions, and a cash subsidy of up to $2,500 for the purchase of locally-made EVs. African countries should increase support to local EV manufacturers to support the continued growth of the budding industry.