Chinese EV maker Zeekr enters Egypt

From the newsletter

It is becoming a lot more common to hear of Chinese EV makers entering Africa. Zeekr, a Chinese EV manufacturer is expanding its global footprint in Egypt. The company recently signed a partnership agreement with Egyptian International Motors (EIM Group) to jointly tap into the Egyptian market.

• Initially, they will introduce the Zeekr 001 shooting brake and the Zeekr X urban SUV, with plans to bring more models in the future. Their first store is set to open in Cairo by the end of 2024.

• Zeekr is a subsidiary of the Geely Holding Group and has currently entered 35 markets globally with Egypt being its first in Africa.

More details

• Zeekr was founded in March 2021 and launched its first model, the Zeekr 001, in April 2021.

• Besides the 001 and X, Zeekr's lineup includes the 007 sedan, 009 MPV, 7X SUV, and the recently launched Zeekr Mix.

• Other Chinese EV makers present in Egypt include Xpeng and FAW.

• Chinese EV companies are also entering other African countries like South Africa, Kenya, and Morocco. One of the major brands, BYD, has entered over 12 markets in Africa with more launches expected before the end of the year.

• Lately, we have seen a flurry of Chinese EV makers expanding into Africa following tariffs imposed by Europe and the USA on Chinese vehicles. 

• In response, Chinese companies are quickly readjusting their focus to Africa. They are not just planning to export EVs but also to establish local manufacturing plants.

• One such company is BAIC, which has partnered with the Egyptian company Alkan to build a local manufacturing plant with the capacity to produce over 20,000 EVs annually.

Our take

• Just as Chinese companies have played a significant role in expanding renewable energy in Africa, they are now poised to drive the adoption of EVs, potentially leading to local manufacturing and job creation.

• Large markets with high car demand, such as Egypt, South Africa, and Nigeria, will definitely be target markets for expansion. However, Nigeria's regulatory measures might be a hindrance in Africa's most populous country.

• Africa is opening up to more partnerships and would welcome Chinese EV manufacturers establishing plants, as this will create jobs for the young, educated population. However, challenges remain, including infrastructure development and affordability.