With electric vehicles (EVs) set to become more accessible to drivers around the world – and solid growth trends attracting public and private investment – several emerging markets are looking to expand their EV manufacturing capacity. EV uptake is essential to the global energy transition, as transport emissions grew at an annual average rate of 1.7% from 1990 to 2022, faster than any other end-use sector except for industry – which also grew at around 1.7% in the same period. The number of passenger EVs on the road is expected to triple globally by 2030 to over 77m, according to strategic research provider BloombergNEF.
New Brands
Although China dominates EV manufacturing, accounting for 58% of global output in 2022, several emerging markets have announced plans to jump-start domestic production. In May 2024 a subsidiary of Egypt’s GV Investments signed a deal with China’s car manufacturing giant FAW Group to begin production of an electric car model in the first quarter of 2025. By 2030 the company aims to expand scope to produce cars with 65% locally sourced components for export to Europe, Latin America and MENA.
Elsewhere in MENA, in November 2022 Saudi Arabia’s Public Investment Fund (PIF) – the country’s sovereign wealth fund – announced a partnership with Taiwan-based tech company Foxconn to manufacture the Kingdom’s first EVs by 2025. The brand, known as Ceer, is expected to draw more than $150m in foreign direct investment and contribute $8bn to the Kingdom’s GDP by 2034. In May 2022 Saudi Arabia’s Ministry of Industry and Mineral Resources stated that the construction of a $2bn EV battery metals plant was already under way, and in September 2023 US-based Lucid Group, in which the PIF holds a 60% stake, opened its first international manufacturing plant in Jeddah.
Turkey has also joined the regional foray into EV manufacturing, with the first SUV models of its domestically produced Togg EVs rolled out in March 2023. The country’s Automobile Joint Venture Group – the consortium behind the project – has plans to expand into the EU in the coming years, starting with a launch in the German market in 2025.
Upgrading Infrastracture
Alongside manufacturing growth, the global charging industry is set to grow at a compound annual growth rate of 34.5% in 2022-30, as governments encourage the construction of EV infrastructure and award large-scale contracts. Additionally, the expansion of ride-sharing services and micromobility options could help drive EV uptake as an alternative to car ownership in urban environments.
The UAE has one of the biggest charging-station-to-vehicle ratios in the world and plans to increase the number of EVs on its streets to 42,000 by 2030. Under way since 2015, Dubai’s EV Green Charger initiative aims to boost the number of charging stations in the UAE to meet expected demand: by the end of 2023 there were around 700 charging stations installed across the country. The first EV and battery logistics centre in MENA opened in Dubai’s Jebel Ali Free Zone in March 2022, providing an area where batteries can be stored, repaired, recycled or processed.
As part of Bahrain’s efforts to reduce carbon emissions by 30% by 2035 and achieve carbon neutrality by 2060, Bahrain’s Electricity and Water Authority and Swedish-Swiss engineering major ABB signed an agreement in April 2023 to supply five charging stations, each with a capacity of 360 KW. The stations will be designed to charge EVs quickly and efficiently, according to leading international standards. In October that year local Kanoo Power Solutions and ABB formed a strategic partnership to expand the footprint of EV charging stations in the kingdom.
The initiative is an essential component of Bahrain’s efforts to establish the necessary infrastructure for EVs. It also seeks to raise awareness among citizens and residents about adopting electric cars as part of an eco-conscious lifestyle, aligning with the global shift towards sustainable, low-carbon mobility solutions.
Read More from OBG
