Introduction

Ethiopia made history in January 2024 by becoming the first country in the world to ban the import of all internal combustion engine (ICE) vehicles. What followed was a rapid transformation of the country’s automotive landscape. Today, 17 electric vehicle assembly plants are operational across the country, with a government target of 60 by 2030. Over 115,000 electric vehicles are already on Ethiopian roads, and more than 60% of all new vehicle registrations in 2024 were electric.

The backbone of this transformation is not just imports — it is local assembly. Ethiopian companies and foreign partners are bringing in knocked-down kits from Chinese manufacturers and assembling everything from compact passenger cars to 100-seat electric buses right on Ethiopian soil.

Why Ethiopia?

Ethiopia spends over $7.6 billion annually on fuel imports. With chronic foreign currency shortages, a sovereign debt default in 2023, and a $3.4 billion IMF bailout, reducing oil dependence became a matter of national economic survival — not just environmental policy.

The timing aligned perfectly with the completion of the Grand Ethiopian Renaissance Dam (GERD) in 2025, which added 5,150 megawatts of clean hydropower to the grid. Ethiopia’s electricity now costs just $0.06 per kilowatt-hour — one of the cheapest rates in the world — making electric vehicles dramatically cheaper to run than petrol alternatives.

The government introduced powerful incentives: zero customs duty on locally assembled EVs, only 5% duty on Semi-Knocked-Down (SKD) kits, and 15% on fully assembled imports. Petrol vehicles, by contrast, faced combined taxes exceeding 130%. This made new electric cars price-competitive with used petrol vehicles for the first time in African history.

The Assembly Plants

1. Belayneh Kindie Group (BKG) — Debre Birhan & Gelan

The most significant local EV assembler in Ethiopia. BKG is a conglomerate of 22 companies that started in fossil fuel vehicles in 2018 and has fully pivoted to electric.

The company imports completely knocked-down (CKD) and semi knocked-down (SKD) kits from China’s Xiamen Golden Dragon Bus Co., Ltd. and assembles them at three plants — two in Gelan town (near Sheger City, about 40 km from Addis Ababa) and one in Debre Birhan (in the Amhara region, 130 km from the capital), which is dedicated exclusively to electric vehicle assembly for public transport.

The Debre Birhan plant cost over 3 billion Birr ($52 million) to build and has an annual production capacity of over 1,000 electric vehicles, including minibuses, light buses, cargo trucks, and luxury coaches. The factory uses solar energy in its operations.

By early 2026, BKG had delivered 150 electric minibuses and 100 large electric buses to Addis Ababa’s city government — the largest single EV delivery in East African history. In April 2025, Golden Dragon and BKG jointly held a delivery ceremony for 100 electric buses in Addis Ababa, marking the first large-scale electric bus operation project in the region.

The plant employs 500 workers directly. BKG also has export ambitions, with plans to sell EVs to other East African countries.

∙ Vehicle types: Electric minibuses (15-seat), light buses, city buses (90–100 seat), coaches

∙ Kit supplier: Xiamen Golden Dragon Bus Co., Ltd. (China)

∙ Locations: Gelan (x2) and Debre Birhan (x1)

∙ Capacity: 1,000+ vehicles per year

∙ Warranty: 8 years vehicle, 12 years battery

2. Velocity Express (BKG Sister Company) — Addis Ababa

A sister company under the BKG Group, Velocity Express operates Ethiopia’s first and largest electric public transit fleet in Addis Ababa. The fleet consists of 20 electric minibuses transporting 5,500 passengers daily, plus two electric buses each carrying 90–100 passengers per trip. It is the first company in Ethiopia to offer electric public transit services commercially.

After-sales service and maintenance is handled by another BKG sister company, Golden Bus S.C. Velocity Express is also investing in EV charging stations across Addis Ababa.

3. Green Technologies Ethiopia — Sendafa

One of Ethiopia’s very first EV importers, Green Technologies Ethiopia (trading as “Go Green”) entered the import business early and quickly saw the opportunity to move into assembly.

The company invested nearly 1 billion Birr in a new EV assembly factory in Sendafa, located 33 kilometres east of Addis Ababa. The factory was built in partnership with a foreign electric car manufacturer to source components and assemble them under their brand. The National Bank of Ethiopia approved supply credit financing for the project.

Beyond assembly, Green Technologies has installed 40 public EV charging stations at high-traffic locations across Addis Ababa — including the Hilton Hotel, Hyatt Regency, and Sheraton Hotel. This charging network, operating under the “Go Green” brand, was built before national legislation for public charging existed, making it a pioneer in EV infrastructure.

∙ Vehicle types: Passenger electric cars

∙ Location: Sendafa, east of Addis Ababa

∙ Charging network: 40 stations across Addis Ababa

4. Woda Vehicle Manufacturing PLC — Addis Ababa

A fully Ethiopian company specializing in the research, development, and manufacture of light electric vehicles. Woda’s flagship product is an electric tricycle (bajaj-style three-wheeler) designed specifically for Ethiopian road and economic conditions.

The Woda electric tricycle travels between 80 and 100 kilometres on a full charge, at roughly one twenty-fifth the per-kilometre cost of a conventional petrol-powered bajaj. This makes it one of the most economically compelling EV propositions in the country.

The product has proven especially popular in rural areas and small towns, where three-wheelers are a primary mode of transport. Woda sold over 500 units in its first year of operation. The company’s marketing officer noted that expanding into rural markets will be difficult without parallel electricity infrastructure expansion, but the tricycle is already bridging the gap where it can.

∙ Vehicle types: Electric tricycles (three-wheelers / bajaj)

∙ Market: Rural areas, small towns, last-mile transport

∙ Range: 80–100 km per charge

∙ Year 1 sales: 500+ units

5. BYD × MOENCO — Kality, Addis Ababa

The world’s largest electric vehicle manufacturer officially entered Ethiopia in December 2024, partnering with MOENCO — a subsidiary of London-based Inchcape PLC and one of Ethiopia’s largest automotive distributors, historically representing Toyota.

BYD launched five electric vehicle models at a brand event in Addis Ababa: the compact BYD Seagull hatchback, BYD Dolphin, BYD Seal sedan, BYD Song Plus SUV, and BYD Tang DM-I luxury SUV. A dedicated after-sales service centre and showroom opened in Kality, Addis Ababa, with a second showroom in the Kal Building, Megenagna area.

BYD is not only selling imported vehicles — it has announced plans to establish a local manufacturing plant in Ethiopia through its MOENCO partnership, which would make it the first global EV giant to build production capacity in Ethiopia. Customers benefit from warranties of up to six years or 150,000 kilometres for vehicles and up to eight years for batteries.

Pricing in Ethiopia:

∙ BYD Seagull: 2.6–3.05 million Birr ($19,000–$22,300)

∙ BYD Song Plus: 6.0–6.5 million Birr ($43,800–$47,400)

∙ BYD Tang DM-I: 7.3–7.9 million Birr ($53,300–$57,700)

∙ Models: Seagull, Dolphin, Seal, Song Plus, Tang DM-I

∙ Partner: MOENCO (Inchcape PLC)

∙ Service centre: Kality, Addis Ababa

∙ Future: Manufacturing plant planned

6. GAC Group × Huajian Group — Addis Ababa

China’s GAC Group — one of the country’s largest state-owned automakers — entered Ethiopia in May 2025 through a partnership with the local Huajian Group. GAC launched two models: the AION Y compact electric SUV and the ES9 luxury electric SUV.

GAC’s President of International Operations described Ethiopia as a market with “strong potential for EV adoption.” Beyond sales, GAC has announced concrete plans to build charging stations across the country and begin local EV assembly operations in Ethiopia — making it one of the most committed Chinese entrants in terms of long-term investment.

The Huajian Group, GAC’s Ethiopian partner, is an industrial conglomerate with existing manufacturing and real estate operations in Ethiopia, providing strong local infrastructure for the partnership.

∙ Models: AION Y, ES9

∙ Partner: Huajian Group (Ethiopia)

∙ Plans: Charging infrastructure + local assembly

7. Changan × Ethiopian Joint Venture — Addis Ababa

The Changan Benben E-Star, produced through a Sino-Ethiopian joint venture, has become arguably the most visible electric vehicle on Ethiopian roads — particularly in Addis Ababa’s ride-hailing and taxi sectors. It is a compact, affordable five-seat hatchback that has resonated strongly with urban drivers making the switch from petrol.

The story of ride-hailing driver Solomon Shenkutie — who swapped his petrol car for a Changan Benben E-Star after calculating fuel savings — has become representative of a broader wave of working-class Ethiopians embracing electric vehicles for their economic benefits, not environmental ones.

∙ Vehicle: Changan Benben E-Star (compact hatchback)

∙ Target market: Ride-hailing, taxis, urban commuters

∙ Status: Most common EV on Ethiopian roads

8. Hambd Trading (Sinogold) — Addis Ababa

Hambd Trading was a genuine pioneer — the first company to import electric vehicles to Ethiopia, doing so three and a half years before the ICE ban when demand was almost nonexistent. Their first shipment of 10 EVs sat unsold for months as consumers were uncertain about the technology.

Today, Hambd sells around 200 electric vehicles per year, sourcing from Sinogold, a prominent Chinese EV manufacturer. The company is an authorized agent for Yutong Bus, one of China’s largest commercial vehicle manufacturers. Hambd has announced plans to erect a dedicated EV assembly plant in Ethiopia — transitioning from pure importer to assembler.

The company also played an important role in educating the market: addressing fears about battery damage on rough Ethiopian roads (batteries are sealed and positioned above the chassis), and working with credit companies to offer installment plans.

∙ Supplier: Sinogold (China)

∙ Also: Authorized Yutong Bus agent

∙ Annual sales: ~200 vehicles

∙ Next step: EV assembly plant planned

9. Mobilit-E — Addis Ababa

An Ethiopia-based financing and distribution company that has become a critical enabler of EV adoption. Mobilit-E offers installment plans for electric vehicles — including a programme requiring only a 20% down payment to buy a BYD car — making EVs accessible to buyers who cannot afford the full purchase price upfront.

Mobilit-E is not an assembler but plays an essential role in the EV ecosystem, bridging the affordability gap between vehicle prices and consumer incomes. Several local credit companies have partnered with foreign EV makers through Mobilit-E’s model.

10. Marathon Motors (Haile Gebrselassie) — Addis Ababa

Owned by Ethiopia’s legendary marathon runner and business entrepreneur Haile Gebrselassie, Marathon Motors opened an EV charging station in 2024 to support locally assembled Hyundai EVs. The company represents an important signal: Ethiopian business leaders, not just foreign investors, are committing to EV infrastructure.

Key Chinese EV Brands Present in Ethiopia (Imported)

Beyond assembly, a growing number of Chinese brands are present in Ethiopia through imports and parallel trading:

∙ BYD Seagull, Seal, Song Plus, Tang — official via MOENCO

∙ Changan Benben E-Star — Sino-Ethiopian joint venture

∙ GAC AION Y, ES9 — official via Huajian Group

∙ Xiaomi SU7 — parallel imports, spotted in Addis Ababa car yards

∙ Toyota bZ4X, bZ3X — imported, though priced significantly higher due to duties

∙ Volkswagen ID.4, ID.6 — parallel imports via independent dealers

∙ Mercedes-Benz EQ range — parallel imports for premium buyers

∙ Kia EVs — available through local dealers

∙ Neta, Wuling, Xiaohu — compact affordable EVs through independent importers

The Numbers: Ethiopia’s EV Sector at a Glance (2026)

∙ EV registrations: 7,000 (2022) → 115,000 (2025)

∙ Active EV assembly plants: 17

∙ Government target: 60 assembly plants by 2030

∙ EVs on the road: 100,000+

∙ Target EVs by 2030: 500,000

∙ Share of new car registrations that are electric: 60%+ (2024)

∙ Electricity cost: ~$0.06/kWh (household)

∙ Annual fuel import savings potential: $5 billion+

∙ Public charging stations: 50–100 (mostly Addis Ababa)

∙ Charging stations needed: 2,300+

Government Policy Framework

∙ January 2024: Complete ban on ICE vehicle imports

∙ Zero customs duty on locally assembled EVs

∙ 5% customs duty on SKD/CKD EV kit imports

∙ 15% customs duty on fully assembled EV imports

∙ ICE vehicles: 15% VAT + up to 100% excise tax + 10% surtax + 3% withholding tax

∙ EV Charging System Directive No. 1034/2024: Requires all EV importers and assemblers to invest in charging infrastructure as a market entry condition

∙ Fast-charging stations mandated every 50 km on highways

∙ Distinctive green licence plates for EV owners

∙ All government vehicle procurement shifted to electric

Challenges Ahead

Despite the progress, significant challenges remain:

Electricity access: Only 55% of Ethiopia’s population has access to electricity. EV adoption outside cities is extremely difficult without parallel rural electrification.

Charging infrastructure: With 50–100 public stations serving over 115,000 vehicles, Ethiopia urgently needs to scale charging capacity. The target of 2,300 stations is still years away.

Affordability: Few EV models are priced below $11,000 in Ethiopia. High import costs and duties push prices far above Chinese factory prices. The BYD Seagull, which costs around $10,000 in China, sells for $19,000+ in Addis Ababa.

Spare parts and mechanics: EV-trained technicians are scarce. Training centres are being established but the gap between vehicle numbers and available service capacity is wide.

Registration bureaucracy: Motorcycle registration can take up to six months. Car registration processes also create friction that discourages adoption and blocks bank financing.

Rural reach: Most EV companies acknowledge that rural expansion is not viable yet. Public transport companies, rural communities, and small town economies remain largely outside the electric revolution.

Ethiopia’s electric car and bus assembly sector is young, fast-growing, and strategically important — not just for Ethiopia, but as a model for the developing world. In less than three years since the ICE ban, the country has attracted the world’s largest EV manufacturer (BYD), built its first large-scale EV factory (BKG, Debre Birhan), launched East Africa’s first electric bus fleet (Velocity Express), and established 17 assembly plants serving everything from luxury SUVs to rural electric tricycles.

The Chinese connection is central: nearly all kits, components, and brand partnerships flow through Chinese manufacturers — Golden Dragon, Sinogold, BYD, Changan, GAC. Ethiopia is not building cars from scratch. It is assembling them, creating jobs, developing skills, and reducing foreign exchange outflows — one knocked-down kit at a time.

The road ahead requires massive investment in charging infrastructure, rural electrification, mechanic training, and consumer financing. But the foundation is laid. And in Debre Birhan, the workers keep bolting seats into minibuses — and sending Ethiopia’s electric future out into the streets.

Sources: Fana Media Corporation, The Reporter Ethiopia, CleanTechnica, Rest of World, CNBC, Reuters, China Global South Project, EV24.africa, Empower Africa, Xinhua, U.S. International Trade Administration

April 2026

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