Emerging Markets Target Global Electric Vehicle Market Share | [term:name] in 2022 | Daily News Byte

– The number of passenger electric vehicles (EVs) is expected to triple in the next decade

– The domestic production of electric vehicles is in line with the economic diversification strategies of the Middle East and Africa

– Subsidies, tax credits and micromobile EV support adoption

– Charging stations, mining infrastructure and battery production are key to expansion

With electric vehicles (EVs) set to proliferate and become more accessible to drivers around the world, several emerging markets are looking to expand their production of electric vehicles.

Once a luxury segment of the automotive industry, electric vehicles have become popular among consumers and companies in recent years, with solid growth trends attracting public and private investment.

The use of electric vehicles is essential to the global energy transition, as transport remains the sector most reliant on fossil fuels, producing an estimated 37% of CO2 emissions from the end-use sector in 2021.

The number of passenger EVs on the road is expected to triple over the next decade to over 77 million, according to BloombergNEF.

Debut brands in MENA

Although China currently dominates electric vehicle production, accounting for 57% of global production in 2021, several emerging markets – particularly in MENA – have announced plans to start domestic production.

In March 2022, El Nasr Automotive Manufacturing Company (NASCO) signed a shareholder agreement with the National Automobile Company to establish the country’s first electric vehicle distributor, with the first NASCO-produced EVs to hit the market in 2023.

In the same month, NASCO also signed a memorandum of understanding with Valeo Egypt, a subsidiary of the French automotive supplier of the same name, for the design, development and production of components for electric vehicles. As of December 2021, the project sought about $127 million in investment and targeted annual production of 20,000 units over a three-year period.

Private players are also looking to support the EV goals of North Africa’s most populous country. Shifting his investments from social media to green projects, Egyptian billionaire Mohamed Mansour announced in November 2022 plans to produce 15,000 electric vehicles in Egypt over the next three to five years through his company Al Mansour Automotive. The company also plans to import and market five Cadillac EV models by 2025.

Meanwhile, Brightskies, an Egyptian company specializing in electric vehicles and power systems, signed an agreement with NASCO and Engineering Automotive Manufacturing Company in February 2021 to produce the country’s first electric buses, localizing and manufacturing technology components in Egypt.

Elsewhere in MENA, in November 2022 Saudi Arabia’s Public Investment Fund, the sovereign wealth fund, announced a partnership with Taiwan-based technology company Foxconn to produce the Kingdom’s first electric vehicles by 2025. The brand, known for like Ceer, will attract more than $150 million in foreign direct investment and contribute $8 billion to the Kingdom’s GDP by 2034.

In May 2022, Saudi Arabia’s Ministry of Industry and Mineral Resources announced that construction of a $2 billion EV battery metal plant is already underway, an integral component of the Kingdom’s electric vehicle production plans and in line with its goal of raising $32 billion investment in its mining sector as part of ongoing efforts for economic diversification.

Turkey has also joined the regional push into electric vehicle production, with the first SUV models of its home-grown Togg EVs due to hit the local market at the end of the third quarter of 2023. The country’s automotive group, the consortium behind the project, plans to export the vehicles within 15 to 18 months of their first domestic sale.

Attracting investment in Southeast Asia

In addition to the proliferation of domestic brands, some countries – primarily in Southeast Asia – are working to attract investment to produce electric vehicles and take over technology from more mature markets.

Already the region’s largest auto manufacturing center, Thailand has implemented policies to attract EV manufacturers and increase production, including a cash subsidy for passenger EVs and a planned battery subsidy.

The country aims for electric vehicle production to account for 30% of total car production by 2030.

As OBG reported in April 2022, Indonesia is also set to become a major EV player as the world’s two largest EV battery manufacturers prepare to invest in projects in the country.

The country released its EV roadmap in September 2020, which includes plans to produce 600,000 electric four-wheelers and 2.45 million electric two-wheelers annually by 2030, along with complementary targets for metal processing and battery production .

Chinese company Contemporari Amperek Technology – the world’s largest EV battery manufacturer – and a South Korean consortium led by LG Energi Solution also signed respective agreements with Indonesian partners on mine-to-production EV projects worth $6 billion and $9 billion.

Infrastructure upgrade

The expansion of ride-sharing services and micro-mobility options, such as electric scooters, could help increase the adoption of EVs in emerging markets, especially in urban areas as an alternative to car ownership. For example, 46% of three-wheelers sold since the start of 2022 in India as of April were electric, bringing EVs’ share of total car sales to 2.6%.

Launched by Drive Electric, a global philanthropic campaign supporting clean energy-based transportation solutions, the Partnership to Accelerate the Leap to e-Mobility has committed $1 million in grants to 10 projects to drive electric vehicle adoption in emerging markets, with the goal of eventually raise a billion dollars. for the cause.

Subsidies or tax exemptions have proven to be useful tools for encouraging the adoption of electric vehicles. In some states of Mexico, drivers of electric vehicles are exempt from the annual tax based on the value of the car. In Vietnam, the government exempted electric vehicles from paying registration fees for three years, while reducing the excise duty on smaller electric vehicles to 3%.

The global charging industry will grow at a compound annual growth rate of 34.5% from 2022 to 2030, as governments encourage the construction of EV infrastructure and award large contracts.

The United Arab Emirates, which boasts one of the highest ratios of charging stations to vehicles in the world, plans to increase the number of electric vehicles on the street to 42,000 by 2030.

Ongoing since 2015, Dubai’s EV Green Charger initiative aims to increase the number of charging stations in the UAE to meet expected demand, with the number of chargers in the country reaching 325 as of August 2022.

In March 2022, the first logistics center for electric vehicles and batteries in MENA opened in the Jebel Ali Free Zone in Dubai. It is designed to foster a regional circular economy for EVs by providing space where batteries can be stored, repaired, recycled or reprocessed.

Egypt, meanwhile, is offering private sector players a 40% stake in a new company set up to oversee pay charging stations, with a total of 3,000 charging stations in operation, the first of which are due to go live in Alexandria and Cairo.