Growing investments in renewable energy, such as solar power, complement the expansion of the electric vehicle (EV) industry, especially in areas with limited electricity infrastructure. Zachary Shahan, CleanTechnica’s director and CEO, says Africa and South America will be the big story in the EV world in 2025.

According to Shahan, Chinese EV manufacturers, with their advanced production capabilities and cost-effective models, are aggressively entering new markets in Africa and South America. Their focus on affordability aligns well with the economic conditions of these regions.

In an article published on January 9, Shahan, who is widely recognised as an EV, solar energy, and energy storage expert, highlights the rapid growth of EV sales globally in 2024, particularly in China, where new energy vehicle manufacturer BYD emerged as a dominant player. With over a decade of EV experience, BYD contributed significantly to China’s EV market during 2024 surpassing 50% of new plug-in car sales by the end of the year.

The author notes that Europe is following closely behind, driven by corporate average fuel economy (CAFE) standards that mandate increasing EV sales. Despite resistance and complaints from automakers, Europe continues to make steady progress in vehicle electrification.

In contrast, Shahan describes the United States as lagging in EV adoption, reflecting a broader reluctance to embrace change. While EV sales are growing, the US remains far behind, struggling to achieve even a 10% market share, indicating a stark contrast to the advancements seen in China and Europe.

The author predicts that while major auto markets will continue to grow in 2025, the rapid electrification of Africa and South America will dominate the EV landscape.

“All of those major auto markets will continue to progress at their own pace in 2025, but a variety of things have come together recently that got me thinking that the big story of 2025 in the EV world is going to be rapid electrification of auto markets in Africa and South America,” Shahan says.

Both continents appear poised for an EV boom, with Chinese automakers accelerating their market entry as they seek new growth opportunities. Market analysts, such as Remeredzai Joseph Kuhudzai covering Africa and Juan Diego Celemín Mojica focusing on South America, have highlighted key developments in these regions.

In Africa, significant milestones include Ethiopia’s continued ban on internal combustion engine (ICE) vehicle imports, Zimbabwe's reducing import duties on EVs, a new BYD partnership for Ethiopian distribution, and Kenya’s MojaEV launching 100 electric taxis in Nairobi. Also, South Africa has introduced tax incentives to support local EV production, and Zimbabwe is exploring EVs and solar power to address trade imbalances.

Shahan emphasises that Chinese EV manufacturers are ready to expand globally, and forward-thinking nations recognise the economic advantages of transitioning to EVs, including potential manufacturing opportunities. With growing cost competitiveness, 2025 may mark a transformative year for these emerging markets, he concludes.