Market Trends of Africa Two-Wheeler Industry
Electric Segment Expected to be the Fastest-growing Segment
The electric two-wheeler market in Africa is currently very niche but is the fastest-growing segment in the region's EV market, primarily due to its suitability for the continent's unique economic and geographic landscape. Factors contributing to this rapid growth include the high cost and limited availability of four-wheel electric vehicles, making two-wheelers a more accessible and affordable option.
Additionally, the widespread use of two- and three-wheelers for transportation and delivery services in urban and rural areas alike amplifies the potential for electric models. Governments and private sector initiatives across Africa are also increasingly supporting the shift toward electric mobility, further accelerating the adoption of electric two-wheelers.
- Kenya, for example, aims for 5% of all newly registered vehicles to be electric by 2025, with a notable focus on the two- and three-wheeler segment.
- Rwanda is implementing policies such as reduced electricity tariffs for EVs and zero VAT on EV consumables.
However, the growth of e-mobility in Africa faces challenges like low demand for EVs, lack of supportive regulatory frameworks, and inadequate charging infrastructure. Despite these challenges, the market for electric two-wheelers in the region is expected to witness significant growth during the forecast period, owing to ongoing developments and governmental support for sustainable transportation.
South Africa is the Largest Market for Two-wheelers in the African Market
South Africa is the leading market for two-wheelers in Africa. The country has a relatively well-developed transportation infrastructure compared to other African nations. Additionally, the presence of a sizeable middle-income population group has fueled the demand for affordable and convenient modes of personal transportation, particularly in urban areas.
Two-wheelers, such as motorcycles and scooters, provide a cost-effective and agile solution for commuting and navigating through traffic congestion. Additionally, the thriving tourism industry in South Africa has also contributed to the popularity of two-wheelers as a preferred means of exploration for visitors.
Sociocultural factors have also played a significant role in the widespread acceptance of two-wheelers in South Africa. The country's diverse population, with a significant youth demographic, has embraced the concept of two-wheelers as a symbol of independence and mobility. The relatively dry and temperate climate in many parts of South Africa also makes two-wheeler riding more appealing compared to other African regions. Furthermore, the growth of ride-hailing and delivery services has created new economic opportunities, fueling the demand for two-wheelers among entrepreneurs and gig workers.
Moreover, the country is also witnessing a surge in e-mobility owing to growing consumer awareness and governmental support. Additionally, the players in the market are also engaged actively in investments related to their electric two-wheeler product portfolios.
