BYD has big ambitions to make a big splash in the Japanese electric vehicle market!

Mondo Cars Updated on 2024-01-31

BYD has big ambitions to make a big splash in the Japanese electric vehicle market!

Reports from Tokyo show that Chinese automaker BYD has set its sights on the Japanese electric vehicle market, planning to sell at least 30,000 electric vehicles a year. The company's goal is to achieve this through an extensive network of about 100 dealers across the country.

BYD's move could have a significant impact on several countries in East and South Africa, especially those that rely heavily on imported cars from Japan. In these regions, with the exception of South Africa, up to 90% of annual vehicle imports come from Japan, mainly in the form of used cars. Most of these imported cars are more than 8 years old, reflecting the economic constraints faced by consumers, who face lower wages and limited financing options for advanced vehicles.

In a situation where people generally cannot afford brand-new vehicles, corporate entities and fleet operators, such as telecom and mining companies, dominate the new vehicle procurement market. In addition, senior management often receives the company's car as part of an employee retention incentive.

The preference for used cars is evident in countries such as Zimbabwe, where 95% of the 76,000 light vehicles registered last year were imported from Japan. Similarly, 90% of Kenya's 80,000 registered light vehicles come from Japan. Kenya has established a well-established ** chain that has been active for about 25 years, and has strengthened the relationship between the Japanese automotive market and countries in East and Southern Africa.

This long-lasting relationship has influenced vehicle trends in these African markets, often with a lag of 5-8 years. Japan's recent focus on plug-less hybrids has begun to impact the African market, with a significant increase in the share of plug-less hybrids in East and Southern Africa. This impact is not limited to hybrids, as the Nissan Leaf was introduced to the Japanese market 7 to 8 years ago and is now having a significant impact in these African regions.

Despite the success of LEAF, experts point out that the lack of active thermal management of the first-generation model could pose challenges in certain African climates. However, BYD's ambitious plans for Japan's EV market could bring about a new round of technological and market changes in the coming years. As the automotive sector evolves, Eastern and Southern Africa may find itself at the forefront of change driven by developments in distant markets. Read more.

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