Notably, in the first nine months of 2024, more electric vehicles were imported than in any previous year, underscoring a rapid transition on Rwanda's roads.
This surge can largely be credited to the government's removal of import taxes on electric vehicles, part of a broader initiative to reduce air pollution and decrease dependency on fuel-based products.
These efforts have gained even more significance in the context of rising global fuel prices, driven by ongoing conflicts worldwide.
The majority of electric cars in Rwanda come from South Korean automakers such as Kia and Hyundai, which have become known for offering affordable and stylish electric vehicles.
These brands are quickly gaining traction compared to traditional market leaders like Toyota. Among the most popular models in Rwanda are the Kia K5, Kia 7, and Hyundai Sonata, with prices ranging between 12 million and 15 million Rwandan francs. Most of these cars are secondhand, typically from 2012 to 2016.
Imported as used vehicles, they usually take about two months to arrive in the country, though before recent global disruptions, delivery could take as little as one month.
Other electric car options in Rwanda include models from Chinese manufacturers such as BYD, Dongfeng, and Nissan, as well as Toyota's RAV4 hybrids. However, electric cars from German manufacturers like VW, Mercedes, and BMW are less common due to their higher price points.
The growth in electric vehicle imports has been dramatic. In 2020, Rwanda imported only 19 fully electric cars, with no hybrid models. By 2021, this number had increased to 38 electric vehicles and 28 hybrids.
In 2022, the figures rose to 134 electric cars and 520 hybrids, followed by a jump in 2023 to 103 electric vehicles and 2,386 hybrids. By 2024, imports had climbed to 218 electric cars and 3,726 hybrids. In total, since 2020, Rwanda has imported 512 electric cars and 7,172 hybrid vehicles.
Prior to 2020, electric car imports were minimal, with fewer than 10 per year. For example, only one electric car was imported in 2018, and 10 in 2019.
Government incentives drive growth
The Rwandan government's elimination of Value Added Tax (VAT) on electric vehicles, replacement parts, batteries, and charging equipment has been a key driver of this growth.
In 2019, the tax exemption amounted to 26.7 million Rwandan francs, rising to 101.6 million in 2020, and reaching 498.7 million by 2021.
According to the Rwanda Revenue Authority's 2022/23 report, the government forfeited a total of 4.6 billion Rwandan francs in tax revenue due to electric vehicle imports.
Globally, electric vehicles have been in production since 2008, spurred by concerns over rising oil prices and increasing emphasis on reducing air pollution.
IGIHE
Source : https://en.igihe.com/news/article/rwanda-s-electric-vehicles-surpass-7-000
