Egypt shows strong growth in 2024 to double EV count

From the newsletter

Egyptians bought 2,938 EVs in 2024, nearly doubling the country’s count to 6,150. It is still a drop in the ocean in a year when 102,200 vehicles were sold. The stronger sales have however propelled Egypt to the top of Africa’s EV market, beating South Africa & Morocco which sold 1,257 & less than 1,000 units respectively. 

• The 2024 sales are still a long way from Egypt’s target to increase EV sales to 92,000 by 2029. To hit this target, its sales must grow from a current count of 6,150 by 300% every year for the next 5 years.

• The country has an even more ambitious target to produce 500,000 EVs locally by 2030, and has offered to subsidise the first 100,000 units exceeding the 400 km range. This target will likely be missed, as its pace of building manufacturing plants has been slow. 

More details

• In terms of numbers, the EV sales are still tiny considering that a total of 102,200 vehicles were sold in Egypt last year. But the trajectory is encouraging enough, attracting global brands such as Porsche, XPENG and Zeekr to enter the market.

• Auto dealers have reported that 3 in 10 customers inquire about EVs, but the high prices force them to settle for ICEs. This shows that demand for EVs is there, and prices have to come down if sales are to grow faster.

• Globally, Egypt is considered a "starter” EV market with significant potential. Its continental competitors such as South Africa and Morocco are however further ahead in terms of local manufacturing capacity. 

• The Egyptian government has ambitious plans to ban traditional petrol and diesel cars by 2040. While 2024 marked the highest number of EVs sold in Egypt, this pace is likely going to persist in the next few years. This is because prices of EVs are gradually falling, while sharp increases in the cost of fuel are giving Egyptian motorists headaches.  

• Petrol prices rose by 17% in Egypt in 2024, leading to increased interest by buyers for EVs. However, the high upfront cost of EVs kept the vehicles out of the reach of many, but interest persists.

• There is also a worry about the lack of sufficient charging stations across Egypt. The country has less than 500 charging stations, even though private firms such as Infinity EV, Sha7en, Elsewedy Electric, Revolta and IKARUS Electric are racing to build new stations.

• While progress has been slow regarding local manufacturing of EVs, Chinese automaker BAIC Group recently signed an MoU with Alkan Auto, a subsidiary of Egyptian International Motors to set up a 120,000 square-metre assembly with an initial capacity to produce 20,000 cars annually.

Our take

• Egypt has a population of more than 112 million, but the majority of its citizens have no cars. As prices of EVs continue to fall, there is an opportunity for thousands of first-time car owners to purchase EVs. This is especially more so as the country suffers high fuel prices.

• The number of second-hand EVs is starting to reach a critical mass in Egypt. The price of these cars is cheaper than new EVs. The proliferation of these vehicles especially from major EV markets such as China will cause a splash in the e-mobility market.

• Government support has played a central role in China’s rise to the world’s leading EV producer. The Egyptian government has borrowed a leaf from China’s playbook and announced subsidies for locally-made EVs. Emphasis should however also be placed on making imported EVs cheaper as they are the majority in the country.