Affordable Electric Vehicles in Addis Ababa

Tesfay Hailemichael, a father of two and a tradesman in the capital, has spent the last 18 months cruising his Volkswagen ID 6. Like many, he never envisioned driving an electric car. Initially set on purchasing a fuel-powered car, specifically the new Jetour, he was persuaded by a car salesman to opt for an EV, both priced similarly.

“Driving an EV minimizes fuel and oil change costs. I’ve saved tens of thousands of birr since switching to my EV. Now, my only concern is the battery,” Tesfaye told Shega.

Tesfaye’s sentiment encapsulates the prevailing attitude towards EVs in Addis Ababa. They are seen as great money-savers, but concerns linger regarding battery replacement.

Tesfaye is among the 100,000 individuals driving EVs in Ethiopia, a number steadily increasing in Addis Ababa. Moreover, the future for EVs appears promising as the Ethiopian government has imposed a ban on importing fuel-powered vehicles for private use.

“There’s no doubt that EVs are the future. It’s only a matter of time before they dominate the streets of the capital,” remarked Moges Negash, an automotive engineer and electric car expert.

Ethiopia spent $6 billion on fuel imports in 2023, over half of which went to fueling vehicles, according to the Ethiopian Ministry of Transport and Logistics. This cost factor, along with environmental and green initiative goals, has prompted the nation, with less than a 3 percent motorization rate, to consider EVs for its needs.

The first EV buses have already started to operate in Addis Ababa, and locally assembled EV minibuses are transporting passengers from one end of Addis to the other. The government has also allowed duty-free importation of EV parts to promote EV use. Companies such as Belayneh Kindie Metal Engineering Complex and Marathon Motors are capitalizing on this tax break.

The city’s car dealerships also sell various EV models from different brands including Volkswagen ID 4 and ID 6, Toyota hybrids, and Honda models. Most of these vehicles are priced between four to six million birr.

Shega went to the market to find the most affordable electric vehicles available. Although there are also a few other cheaper options, here are the ones you can easily find at car dealerships.

Changan BenBen E-Star, 2023:

• A Chinese hatchback with five seats, available in Automatic and Manual transmission options.
• Equipped with a lithium battery, offering a range of 300 to 310 km per charge.
• Charging time ranges from 10 to 12 hours using wall sockets and 1 hour with a fast charger.
• Priced between 1.5 to 2 million birr, depending on specifications and color.

BYD Seagull 2WD EV:

• A five-seater Chinese-manufactured car with automatic transmission.
• Offers a range of 305 to 405 km per charge.
• Fast charging takes around half an hour, while regular charging requires around 10 hours
• Priced between 2.5 to 3 million birr, depending on specifications and color.

Neta U EV 2023:

• A Chinese-manufactured SUV with five seats and automatic transmission.
• Offers an impressive range of up to 610 km per charge.
• Charging time is approximately 10 hours with a home charger and half an hour at charging stations.
• Prices range from 3.5 to 3.8 million birr.

Honda eNS1 EV 2023:

• An SUV-type EV with automatic transmission.
• Offers a range of up to 510 km per charge.
• Charging time is around 10 hours with a home charger.
• Priced between 3.8 to 4.2 million birr.

Toyota Hybrid RAV4:

• A five-seater SUV with automatic transmission.
• Utilizes a Nickel-Metal Hydride battery for the electric motor.
• Maximum speed up to 188 km/hr.
• Price ranges from 5 to 5.5 million birr.

Related- Addis Ababa to Implement Full Ban on Fuel Motorcycles

Factors To Consider Before Buying EV

Resale Value

Seife Mekonen, a car broker and salesperson with over five years of experience in the business, says that electric cars do not hold much resale value in the market. According to Seife, once EVs leave the showroom, they are considered used, resulting in diminished interest from potential buyers. This could pose a problem for individuals considering cars as assets.

Charging Stations and Battery

As Electric Vehicles are relatively new to the country, there is limited infrastructure prepared for them, including charging stations. Bareo Hassen, State Minister of Transport and Logistics, revealed that to accommodate the growing fleet of electric vehicles, 60 charging stations have been deployed across various locations in Addis Ababa.

He further disclosed that the government plans to expand the network of electric vehicle charging infrastructure to regional cities and introduce long-distance electric vehicles to the market.

Some hotels in Addis Ababa such as Hilton and Kafdem Plaza, located in Kality, also have Charging stations 

The battery life is another crucial factor to consider before purchasing. “An EV car’s battery has a lifespan of eight to ten years maximum if kept in good condition,” states Moges, the automotive expert.

Insurance

Insurance companies are still adapting to EVs, and are imposing higher premiums to mitigate the uncertainty associated with the risk exposure of EVs, particularly caused by their batteries.