China’s Rox Motors picks West Africa EV distributor

From the newsletter

Chinese luxury SUV manufacturer Rox Motor has signed a deal with Ghana’s Ronor Motors to exclusively distribute its extended range electric vehicles in West Africa. Its flagship model, the Rox 01, is an all-terrain luxury hybrid SUV. The automaker, which has a global reach, currently operates in only two countries in Africa: Egypt & Libya. 

• There's increasing interest in EVs across Africa, including the luxury segment. Luxury SUVs, in particular, appeal to affluent consumers seeking a combination of performance and comfort.

• Automakers are currently testing the level of demand for these luxury EV options to grow sales at a time when competition in this segment in their main markets such as the US, Europe, Middle East and Asia is stiff.

More details

• The Rox 01 is a mid-to-large-sized SUV, essentially a hybrid, with rugged off-road styling. As an extended-range electric vehicle (EREV), it combines electric and fuel-powered capabilities, offering a range of over 1,000 km on a full charge and a 60-liter fuel tank. The vehicle can also travel up to 230 km on electricity alone.

• The price of the SUV is yet to be revealed. But a used Rox 01 is retailing in China at between $40,000 to $55,000. This means that a new one costs a lot more. Further, when you add the cost of shipping and local taxes, the vehicle is likely to sell on the continent at more than $90,000.

•  Its manufacturer, Rox Motor, is trying to bridge the gap between rugged off-road vehicles, and high-tech luxury electric vehicles. The company was launched in China in January 2021 and produced its first vehicle, the above-mentioned Rox 01, in August 2023.

• While starting out in China, the automaker is actively expanding its global presence, with a focus on emerging markets in regions like the Middle East, Central Asia, Africa, Southeast Asia, and Latin America.

• Its entry into West Africa, starting in Ghana, signals its strategy to expand across Africa. This means it now has a presence in West Africa and North Africa. There are however still major EV markets in Southern and Eastern Africa such as Kenya, Ethiopia and South Africa, which the automaker could target for future expansion.

• It also comes at a time when other electric carmakers are targeting Africa’s growing SUV market. Just this week, BYD, which is the world’s largest electric automaker, launched the Tang SUV EV in Côte d'Ivoire. The seven-seater vehicle, which has a longer range and is costlier than existing SUVs, is ideal for families.

• In the hybrids market segment, Rox will face stiff competition from more established brands such as Volvo, Porsche, Mercedes-Benz which have their own lineups of luxury hybrid SUVs in key markets such as South Africa, Egypt and Morocco. 

Our take

• The bet by luxury electric and hybrid SUVs on Africa will pay off in the long term. While the number of high-net-worth individuals is lower than on other continents, Africa's millionaire population is projected to rise by 65% over the next decade. This will create a bigger market for high-end EVs.

• Hybrid vehicles are here to stay. It is unlikely that African countries will fully solve their lack of charging infrastructure problem any time soon. Hybrids will continue to serve the critical role of removing range anxiety especially for off-road vehicles.

• Price will play less of a role in the success of luxury electric and hybrid vehicles in Africa. The target market for these vehicles is affluent, and care more about quality, style and performance. Automakers that manage to offer these will stand tall above the rest.