Toyota dealer expands with Chinese electric brand BYD
Trade CS Salim Mvurya (right) confers with CFAO Mobility CEO East and Southern Africa Fabrice De Creisquer (left) and CFAO Mobility Managing Director Arvinder Reel during the launch of Atto Hero Model Electric Vehicle at the CFAO Mobility premises in Nairobi on September 25, 2024.
Chinese car manufacturer BYD Auto has entered the Kenyan market, introducing three electric car models that are being sold by its local distributor Loxea, whose sister firm CFAO Mobility Kenya deals with Toyota and other petrol- and diesel-powered models.
Loxea, a subsidiary of CFAO Group, has introduced a mid-size SUV (Atto 3), a sedan (Seal) and a hatchback (Dolphin). The Atto is priced at Sh12 million, while the two models start at Sh7.5 million.
The Dolphin, Atto 3, and Seal can travel up to 402, 410 and 664 kilometres respectively on a single charge.
The Atto 3 hero model electric car was launched at the Loxea Showroom at CFAO Mobility premises along Uhuru Highway on September 25, 2024.
Photo credit: Francis Nderitu | Nation Media Group
This marks CFAO's entry in the nascent electric vehicle market in Kenya, with most models sold by the new vehicle dealers comprising models with internal combustion engines.
The shift to electric mobility, driven by efforts to reduce pollution, is expected to reduce the volume of sales of petrol and diesel-powered vehicles in the next few decades.
BYD is one of the largest manufacturers of electric vehicles and is currently on track to overtake US-based Tesla Inc in terms of global unit sales.
"We are excited about this partnership, especially knowing CFAO's track record and our experience in the EV sector," Mr Steve Chang, an executive of BYD Auto South Africa, said.
Loxea has been in the vehicle leasing and fleet management business and with the BYD deal, it has now expanded into dealership.
The company will offer the electric vehicles for lease and purchase.
"This is our first partnership with an automotive brand and as we expand we will bring more vehicles. With these three vehicles; the Atto3, the Seal and the Dolphin, we will keep surveying the market and see what our customers want," Ms Jennifer Kinyoe, the managing director of Loxea Kenya, said.
"We are not worried about charging infrastructure because the vehicles come with two chargers, a plug-in and a wall bracket."
CFAO is the latest new vehicle dealer to enter the electric vehicle (EV) market after Simba Corp, which launched the all-electric Mahindra XUV 400 sports utility vehicle (SUV) for Sh9 million earlier this year.
Globally, the showroom prices of more and more electric vehicle models are falling below those of comparable diesel or petrol cars, gradually eroding the cost advantage that traditional cars have enjoyed.
Trade CS Salim Mvurya (left) and CFAO Mobility Managing Director Arvinder Reel get a feel of the Atto Hero Model Electric Vehicle during the launch of Atto Hero Model Electric Vehicle at the CFAO Mobility premises in Nairobi on September 25, 2024.
Photo credit: Francis Nderitu | Nation Media
This shift means that, in the long term, the traditional periodic oil changes will become obsolete and warranty periods will notably extend, especially for the battery, which is the core component of an electric vehicle.
A global report, Electric Vehicle Outlook 2024, shows that Kenya is among the countries whose uptake of electric vehicles has improved.
Data from the Energy and Petroleum Regulatory Authority shows that there were 2,694 registered EVs in Kenya as at December last year, up from 129 in December 2019.
Speaking at the launch on Wednesday was Cabinet Secretary (CS) for Investments, Trade and Industry Salim Mvurya, who said the government has prioritised the adoption of e-mobility in a bid to reduce carbon emissions with a target of 32 percent reduction by 2030 and to lower Kenya’s reliance on oil imports.
"In the 2023 Budget Policy Statement, the government committed to provide financial and tax incentives for PSVs (public service vehicles) and commercial transporters to convert to EVs, and there has been a notable response by the sector,” Mr Mvurya said.
