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Chinese EV firm launches in Ethiopia
From the newsletter
GAC International, a Chinese automotive company, has launched two electric car models in Ethiopia. The Aion Y Plus and the ES9 PHEV offer both fully electric and plug-in hybrid options. The former boasts a range of 610 km, while the latter offers a pure electric range of 143 km. This initiative is in collaboration with the Chinese Huajian Group.
Ethiopia is emerging as a magnet for multinational OEMs, signalling growing investor confidence. However, with players entering the market simultaneously, questions remain as to whether there is enough consumer demand so far.
GAC’s move aligns with its stated ambition to promote local assembly in Africa. This complements the Ethiopian government’s draft policy seeking to prioritise local assembly over vehicle imports to build domestic capabilities.
More details
The GAC Aion Y Plus is a fully electric compact SUV powered by a 150 kW motor, offering a range of up to 610 km on a single charge and accelerating from 0–100 km/h in approximately 8.5 seconds. It is equipped with a 69.9 kWh Lithium Iron Phosphate (LFP) battery and supports fast charging.
The GAC Trumpchi ES9 PHEV is a plug-in hybrid SUV offering 143 km of pure electric range and a total range exceeding 1,000 km through its hybrid system. It combines a 2.0L turbocharged petrol engine with dual electric motors and a 25.6 kWh battery.
The partnership between GAC International and the Huajian Group aims to secure 30% of Ethiopia’s EV market by 2030. This goal aligns with the Ethiopian government’s broader ambition to have 500,000 EVs on the road within the next decade. To achieve this, GAC will need to invest in end-to-end localisation covering assembly, charging infrastructure, after-sales service, and consumer finance.
Ethiopia is creating a policy-driven demand environment for electric mobility. By banning the import of internal combustion engine vehicles, the country has eliminated the inertia typically seen in other African markets, offering EV-focused brands an opportunity to scale without legacy competition. This shift significantly reduces the risk of market entry.
The Ethiopian government has also taken a proactive stance on EV infrastructure, issuing clear policy directives and engaging state-owned enterprises like Ethio Telecom. Ethio Telecom has begun installing charging stations, leveraging its real estate assets to support infrastructure rollout. This centralised public-private model enhances investor confidence and accelerates grid readiness.
In addition to vehicle imports and assembly, Ethiopia has expressed intent to develop a domestic battery supply chain. The government is exploring local sources of lithium and rare earth elements, alongside partnerships for battery assembly and recycling. This would reduce import dependency and strengthen supply chain resilience.
While GAC’s entry is notable, other players such as BYD, Belayneh Kinde Auto, and various Asian automakers are also entering the Ethiopian market. As policy incentives expand, competition—particularly in the sedan and compact SUV segments—is expected to intensify. Key differentiators will include service networks, battery warranties, and access to financing.
Unlike neighbouring markets such as Kenya, Uganda, and Rwanda, where two- and three-wheeled EVs dominate, Ethiopia is prioritising full-sized electric vehicles. With its low-cost renewable energy and large domestic market, the country presents an attractive market for OEMs seeking mass-market penetration in East Africa.
The launch of the Aion Y Plus and ES9 PHEV reflects GAC’s phased market entry strategy. As infrastructure improves and consumer awareness grows, further model introductions are anticipated. However, early entrants stand to shape industry standards and secure key public sector mobility contracts.
Our take
Ethiopia presents a compelling test case for whether policy-driven demand can unlock meaningful EV scale in Africa. If successful, it could reshape how manufacturers engage with African markets; shifting from purely commercial strategies to ones grounded in regulatory alignment and ecosystem development.
The country’s early focus on four-wheel electric mobility, rather than two- or three-wheelers, reflects a bold industrial vision to leapfrog into local manufacturing and technological leadership. This positions Ethiopia not only as a growing consumer market, but as a potential regional hub for EV assembly and innovation.
Ethiopia’s approach to the EV transition is remarkably cohesive for a developing economy, combining industrial policy, utility coordination, and private sector collaboration. This level of alignment across public and infrastructure sectors offers a rare and promising foundation for rapid ecosystem maturity.