PURE EV to sell 60,000 electric motorcycles to Africa

From the newsletter

Indian electric two-wheeler manufacturer PURE EV is targeting to sell 60,000 units to Africa in the next 2 years. Less than 30,000 of the units are sold in Africa annually. In 2024, the company partnered with Arva Electric to expand into the Middle East and Africa. It is one of the major automakers in India targeting Africa’s rising EV demand. 

• The company sells 4 new models, but the most popular are Etryst 350, EPluto 7G and EcoDryft. Its most expensive electric motorcycle is the Etryst 350 which is priced at $1,504.60 while the lowest priced model is the ETrance Neo which costs $856.37. Electric motorcycle prices in Africa vary widely depending on the country. But costs range from $1,500 while some cost more than $2,050. 

• Electric motorcycle competitors on the continent are focusing on bringing new battery technology in the market that deliver efficiency, power, and a higher range of scooters and motorcycles. PURE EV has yet to reveal its target markets. The company is however likely to target markets with high demand for electric motorcycles such as South Africa, Nigeria, Kenya, Uganda, Egypt and Morocco.

More details 

• Africa’s rapid population growth and increased urbanization has posed numerous issues, but also opened new opportunities. With swelling cities gridlocked with traffic snarl ups, motorcycles have become key to moving quickly around cities.  

• Motorcycles, both electric and Internal Combustion Engines (ICEs), are very popular in Africa. They are used by millions of individuals on the continent to move around easily. But the allure of electric motorcycles is increasing, largely due to cost considerations.

• Electric motorcycles are being adopted faster than electric cars, buses and trucks in Africa. Price is a major factor, as electric motorcycle sellers have found a way to sell their units without batteries and lease the batteries. This has proved hugely popular as it removes from the buyer the burden of buying the battery upfront.

• The global energy crisis, which has led to decades-high prices of oil in recent years, has opened the door for millions to switch to electric motorcycles. However, countries that have cheaper electricity have an advantage.

• PURE EV seeks to tap into this rapidly growing African electric two-wheeler market.The company, which is currently one of the leading EV2W brands in India, has set up a dedicated EV and battery manufacturing unit.

• Competition will however be stiff. More than a dozen electric motorcycle manufacturers are already operating in Africa. They include Roam, Arc Ride, Spiro, Zembo Motorcycles, Ampersand and Volta Motorbikes. Other key players are TVS Motor Company, Vmoto Limited, Mazi Mobility and Bajaj Auto Limited.    

• But the projected growth of the market offers space for new players. The African electric two-wheeler market is projected to witness a strong CAGR of 24.78% between 2024 and 2031. 

• The value of this market is expected to grow from $441.69 million in 2023 to $2.612 billion in 2031. 

Our take

• The entry of foreign electric vehicle firms into the African market is stirring stiff competition. This is a welcome development as competition is likely to increase innovation and drive down prices for consumers.

• The wide range of models of electric motorcycles on offer on the continent is encouraging. This product differentiation enables buyers to choose from a wide range of options to suit their needs, tastes and preferences. 

• The cost of producing EVs in Africa remains high. The entry of foreign EV manufacturers offers local African companies an opportunity to learn best global manufacturing practices to make their processes efficient. This will cut costs and maximize output.