How ready is Ethiopia for electric vehicles?

BY DARGIE KAHSAY

Center for Strategic and International Studies (CSIS) on December 2019 reported that more than two million electric vehicles (EVs) were sold globally in 2018, and predicted to grow the market of electric vehicles in the coming decades.

The development and deployment of electric vehicles and electric vehicles infrastructure will become an important part of markets and supply chains in the coming years, according to CSIS.

Global EV Outlook 2020 also reported that in 2019 over 2.1 million EVs sold globally which boosts the number of electric cars in the street to 7.2 million across the globe.

The total sold EVs of 2019 counted for 2.6 per cent of the total global cars sold by the year. The EVs infrastructure is also boosting at high rate and the investment in the infrastructure is growing highly, according to the report.

It added that in the coming five years automakers announced that additional 200 EV models will join the market, which is expected to grow the consumers’ needs and to meet the expectations of users with technological improvements and mart models.

EV Volumes reported that currently over 500 EV model are supplying globally.

Research and Markets, in 2019, also forecasted that by 2030 the market of EVs globally expected to reach over 26.95 million units. It added that heavy investments from automakers in EVs and encouraging government policies and subsidies are significant factors for the growth of the electric vehicle market globally, according to Research and Markets.

As a champion and promoter of green economy, Ethiopia is encouraging pro-green investments with subsidies. Though, the first Electric Car was launched on July 2020, assembled locally, Ethiopia has set pro-electric cars policy and made it excise free even before the launching of the first EV.

The first electric vehicle launched by Marathon Motors Engineering on July 2020 was delivered to Prime Minister Abiy Ahmed (Dr.). Additional, the second assembled EV is also on the street now and tens of EVs are coming to join the market soon, according to Company CEO.

By 2030, as part of its building climate-resilient green economy strategy of becoming middle income economy, Ethiopia planes to make 30 per cent of the cars at home electric and to promote this, it sets excise tax free market for EVs.

Approached by The Ethiopian Herald recently, Marathon Motor CEO Malkamu Assefa said that Ethiopia joins the electric vehicle in 2020 by the pioneer company, Marathon, although millions of EVs are driving across the world.

These cars are environmental friendly, affordable and modern almost with zero cost after have it compared to gas vehicles, the CEO stated. To support the interventions and strategic plans of Ethiopian government and to go parallel with the world’s technological advancements, Marathon Motors has planned, according to Melkamu, to boost its EV production starting from 2021.

Launched the first EV on July, currently two EV cars are on the street serving their owners, Melkamu said and up to now any single problem hasn’t happen on these locally assembled EV cars.

He added that additional model of EV is also on process to launch soon and 30 electric cars are also on their final phase to join the streets soon, in few months.

By 2021, Marathon, which has a total production capacity of 36 cars per day and 10 thousand cars per year, has planned to boost its EV cars to cover 10 to 15 percent of its total productivity. Melkamu said that “at the end of 2021, at least hundreds of EV cars will join the streets”.

According to him, by 2022, Marathon’s plan is to produce over five models of EVs and to assemble thousands of EV cars. Adding that by 2023, EV cars will take up to 40 percent of the company’s total assembling capacity.

By 2030, Marathon’s plan according to the CEO is to fully shift to producing electric vehicles with all its capacity and to expand EV infrastructure. The only needed infrastructure for EV is charger and charging station, which is the only problem at this time, Melkamu stated, as a pioneer to launch EV Marathon is preparing to start electric charging station within three to four months.

Ethiopia is one of the countries in the forefront in relation to climate related interventions by addressing both adaptation and mitigation consequences of climate change to build climate-resilient economy, Melkamu noted.

For the realization of this vision, the private sector’s environmentally friendly investment is critical and a timely action. Hence, Marathon’s effort is to fulfill its own responsibility for the realization of the country’s goal of building middle income climate resilient economy.

For the CEO, though EVs were launched for the purpose of tackling carbon emission since it is a zero emission vehicle, EVs are coming with additional blessings in addition to the protecting the health of the environment, especially in minimizing costs for users.

The only challenge at this time to have EV is the limitation of charging, which can easily address it by establishing chargers at home, at offices or at charging stations which Marathon is planned to start soon which will follow by other investors easily.

Technically, EVs are modern and their material for the services is easily accessible and not different from gas cars. The only case what makes different from gas cars is they used electric charger instead of gas.

“EV’s are almost easy to drive, comfortable and do not incur extra cost after sales” Melkamu stated. “The cars we are importing cause high carbon emission which is disturbing and polluting the environment” he stated adding that “this needs action at least to minimize the effects by introducing such technologies by investors and the people should also develop the culture of using EVs”

“As I mentioned, the only current problem for EVs is the charging limitation which will develop with minimum investment personally and commercially”, Melkamu noted, adding “Due to the affordable price, and absence of post sales cost contributes a lot for healthy environment, it needs attitudinal change since the mass takes EVs as only luxury products”

For him, EVs are normal cars to drive everywhere by using slow and fast charging methods and in the future the charging stations will also grow since it needs small investment only even by organized youths, at offices, at home.

According to him in the near future, electric cars are expected to dominate the market not only for their environmentally friendly nature but also their affordability, lower post sales cost and rare need for periodic services as compared to gas driven cars.

The cost of electric cars compared to gas ones is less than five percent, he stated, hence in the future these cars will become attractive for users. There is no problem to limit us to use electric cars at this time, except the charging infrastructure and developing the infrastructure may need attention by the government in addition to the investment by the private sector until private investors join the infrastructural development for commercial purposes. It needs in icebreaker and in this case, Marathon will launch the first charging station soon, the CEO stated.

The Ethiopian Herald January 7/2021

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