[Source/Observer Network, Zhang Jingjuan] The trend of deglobalization in Europe and America cannot stop Chinese cars from going to Africa. According to a Bloomberg report on the 24th, MojaEV Kenya Limited, an electric vehicle distributor headquartered in Nairobi, mainly imports complete vehicles made in China. The company plans to start local assembly in August and export to multiple African markets.

Erick Lumallas, assistant to the CEO of MojaEV, revealed that before MojaEV establishes its own factory to assemble batteries and solar components, the vehicles will be assembled at United Vehicle Assemblers (AVA) in Mombasa, the second largest city in Kenya.

"We have signed contracts, and all original equipment manufacturers have reached agreements with us to provide technical support for building the factory."

The report pointed out that MojaEV is establishing an assembly plant to avoid taxes levied by Kenya on imported products. Lumallas said that the new factory will produce up to 300 vehicles per month, with an expected annual sales volume of 1500 vehicles.

He mentioned that taxation remains the biggest challenge facing the Kenyan electric vehicle industry, including a 35% import duty, a 20% consumption tax, a 1.5% railway development tax, a 2.5% fuel tax, and a 16% value-added tax.

He added that in addition to the above taxes, companies also need to pay port fees, handling fees, demurrage warehousing fees, and container freight station fees.

Screenshot of Kenyan electric bus

In comparison, locally assembled electric vehicles only need to pay value-added tax.

It is reported that localized production will allow the company's entry-level models to sell below the current 25 million Kenyan shillings (approximately RMB 140,000), and high-end models below 75 million Kenyan shillings (approximately RMB 423,000).

MojaEV has already exported cars to Tanzania and plans to expand sales to Rwanda, Uganda, Mauritius, Ghana, Nigeria, Botswana, and Zambia. Its product range includes Skyworth and Neta SUVs, Geely Emgrand GSE and Wuling sedans, double-cabin pick-up truck Riddara, as well as Foton buses and trucks.

To address the limited charging points in Kenya, every vehicle distributed by MojaEV comes equipped with a portable charger (compatible with any socket) and a fixed charging station (installable in buildings or parking lots).

Lumallas said that since 70% of Kenyans use public transportation, MojaEV is negotiating with some major companies in the industry to plan converting vehicles into electric buses.

According to the "Kenyan National Energy Efficiency and Energy Conservation Strategy (2020)", by 2025, 5% of registered vehicles in Kenya will be electric. In addition, Kenya aims to achieve net-zero emissions by 2050.

Last October, MojaEV announced that it would deploy 100 NETA V electric vehicles produced in China to the taxi market in Nairobi, the capital of Kenya, through a leasing model.

In November, representatives of the Matatu Owners Association of Kenya and the Kenya Commercial Bank traveled to China to understand the electric bus market to promote the green transformation of the public transport sector in Kenya.

Notably, the US and Europe previously joined forces to block Chinese car manufacturers from expanding overseas.

On July 4, 2024, the European Commission released a 208-page document deciding to impose temporary anti-subsidy duties on electric vehicles imported from China starting May 5. The three sampled Chinese automakers, BYD, Geely Auto, and SAIC Group, will be subject to temporary anti-subsidy duties of 17.4%, 19.9%, and 37.6%, respectively. Other cooperating but unsampled Chinese automakers will face a weighted average tariff of 20.8%, while non-cooperating companies will be taxed at 37.6%. If this measure is approved by EU member states, it will further become a five-year official tax.

Earlier, the US also imposed protectionist measures under the guise of "national security," increasing the tariff on Chinese electric vehicles from 25% to 100%.

This article is an exclusive piece by the Observer Network and unauthorized reproduction is prohibited.

Original source: https://www.toutiao.com/article/7497226826452927039/

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