E-motorcycles in SA cost 3x more

From the newsletter

Affordability drives consumer choices and market penetration of EVs. The average cost of an e-motorcycle in South Africa is almost three times the average cost in Kenya. Similarly, e-bicycles in South Africa cost twice as much as they do in Kenya or Nigeria. This trend is reversed when it comes to four-wheelers.

• The price of e-motorcycles varies significantly across Africa. In Kenya, an e-motorcycle costs $2,000 on average, while in South Africa, the same e-motorcycle costs $6,000. This price difference is based on a sample of 29 popular e-motorcycle models sold in both countries.

• Similarly, electric bicycle prices vary across countries. In Kenya and Nigeria, the average cost of an e-bicycle is $1,100, while in South Africa, it is $2,200.

More details

• African countries have started embracing EV manufacturing as a strategy to lower the cost of electric vehicles. Local manufacturing reduces the overall cost of an EV due to lower logistics expenses. In Kenya, Roam and Spiro are assembling e-motorcycles, while BasiGo is manufacturing e-buses. Although South Africa is a big player in Africa’s automotive manufacturing sector, most of the e-bikes are imported, leading to higher purchasing costs.

• However, this trend is reversed when it comes to electric cars. Buying an electric car in South Africa is cheaper compared to the Kenyan or Nigerian markets. For instance, the Hyundai IONIQ 5 will cost a consumer in Kenya or Nigeria $2,000 more than in South Africa. Consumer preferences have influenced economies of scale differently. While the South African market leans toward electric cars, Kenya and Nigeria are more focused on electric two-wheelers.

• Policies have significantly impacted the cost of EVs. In Kenya, removing the excise duty for locally manufactured EVs has encouraged the influx of EV manufacturing companies. The result is evident in pricing, where the cheapest electric motorcycle is retailing for $1,200 compared to South Africa’s $2,940. With Nigeria and South Africa reviewing their EV policies in 2025, prices might decrease, making EVs more affordable.

• African EV markets are adapting to EV technology at different paces. The South African market is among the top-leading markets, with most new models piloted there more frequently than in any other market. For instance, 10+ new EVs, including pickups and SUVs, are expected to enter the South African market in 2025. 

• The prevalence of asset finance companies such as Mogo, M-KOPA, and Watu Africa has improved the affordability of electric two-wheelers. This has led to mass adoption, influencing the demand and supply curve, which in turn affects the pricing of electric vehicles.

Our take

• The prices of e-bikes in Kenya and South Africa are less likely to fluctuate significantly compared to those in countries with less stable currencies, such as Nigeria. This is because the local currencies of Kenya and South Africa have demonstrated greater stability, leading to more consistent pricing. Stable currencies provide a more predictable economic environment, which benefits businesses and consumers alike.

• South Africa represents the continent's largest market for last-mile deliveries, making it an attractive target for key electric two-wheeler companies. Also, South Africa has a higher cost of electric motorcycles compared to other African markets. However, a thorough market analysis is necessary before expanding into this market to identify specific opportunities and address pricing concerns.