Despite tax-free incentives on imports, Tanzania’s EV industry faces other obstacles to growth, including limited funding, a shortage of technicians, and low consumer awareness.
Dr Stephen Dyer, co-leader of global consulting firm AlixPartners'' Greater China business and head of the firm''s Asia automotive and industrials practice, said: "It’s possible now that we’re at the forefront of the advent of the China age in the automotive industry globally."
"(With an electric moped), I usually don’t have huge fuel expenses anymore," she said. "It’s a good vehicle that can help me, as a young person, reach my goals in life."
Piki operations manager Andronico Chaulo said: "There are issues with its battery and overall care of the motorcycle’s body, which can get damaged easily."
Ms Mercy Kitomari, government relations and policy lead at Tri, said there is interest from buyers from neighbouring countries such as Malawi, the Democratic Republic of Congo, Ethiopia, and Zambia.
LIMITED FUNDS, LOW AWARENESSDespite tax-free incentives on imports, Tanzania’s EV industry faces other obstacles to growth, including limited funding, a shortage of technicians, and low consumer awareness.
"If you know your phone is dying, you will charge it, especially if you’re using it for work. So it’s the same thing with electric vehicles. But adaptation is a process."
Since 2009, Beijing has offered subsidies and tax breaks to Chinese EV manufacturers, which allows them to sell their products to overseas markets relatively cheaply.
In Africa, trade in EVs is dominated by the import of components from China. But there is also increasing interest for Chinese carmakers to form local partnerships.
"As the market grows to enough volume to support local assembly operations, we typically see a step where exporters will then begin assembling what we call semi knock-down kits and then completely knock-down kits," said Dr Dyer. A knock-down kit refers to a bundle of parts imported to assemble a product.
"And later, as the volume reaches a certain scale, you’ll see the local development of an automotive ecosystem," he told CNA''s East Asia Tonight on Friday (Jul 12).
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