BYD signs partnership with Inchcape to enter Ethiopia

November 08, 2024

From the newsletter

Leading Chinese EV manufacturer BYD has partnered with the Motor & Engineering Company of Ethiopia Limited S.C. (MOENCO), a subsidiary of Inchcape Plc, to enter the Ethiopian market. MOENCO will distribute BYD's electric and hybrid vehicles and provide maintenance, spare parts, and warranty support starting in December 2024.

  • Inchcape Plc is a UK-based company in automotive distribution and retail, operating in 40 international markets.

  • In Africa, Inchcape is present in Ethiopia, Kenya, and Djibouti.

More details

  • BYD has been expanding in Africa and currently has a presence in 13 countries, including Kenya, South Africa, Madagascar, Zambia, and Rwanda.

  • It has launched its vehicles in Africa and has partnered with local players in those countries to distribute its electric vehicle models.

  • In Kenya, it is partnering with Loxea for sales and distribution. In South Africa, it has partnered with five local dealerships and plans to expand to 25 by the end of 2025.

  • The deal between BYD and Inchcape is their first distribution agreement in Africa, adding to existing agreements in Belgium & Luxembourg and Singapore.

  • This partnership comes at a time when Ethiopia has banned fuel vehicles and is increasingly pushing for EV adoption. This partnership is timely.

  • Francis Agbonlahor, Managing Director at Inchcape Africa said, “This strategic partnership between MOENCO and BYD marks a pivotal moment in the Ethiopian automotive landscape, as we work hand-in-hand to lead the charge in providing efficient, technologically advanced, and intelligent green energy mobility solutions.”

Our take

  • By partnering with Inchcape, BYD gains instant access to their robust distribution network in Ethiopia, complete with established infrastructure, logistics, and personnel. This not only eliminates the time and costs associated with building a distribution system from the ground up but also allows BYD to bring their vehicles to market much faster.

  • Inchcape's size and market presence translate to bulk discounts on everything from shipping to parts, reducing end costs passed to consumers. EVs become affordable as a result.

  • Plus, Inchcape likely already has strong marketing relationships in the region, allowing for more effective advertising campaigns to promote BYD's EVs.