Dodai, an electric vehicle startup in Ethiopia founded by Yuma Sasaki, has quickly become the fastest-growing EV maker in the country by selling 850 electric motorcycles within a year. Its bikes are popular for deliveries, with a range of 150 kilometers per charge. The government’s support in establishing battery swapping stations will enhance EV accessibility in Ethiopia’s regulatory environment challenged by inconsistent power supply and lengthy registration processes.
In energy-limited Ethiopia, where less than half the population has access to electricity, a local startup, Dodai, is rapidly gaining traction in the electric vehicle sector. Within less than a year, Dodai has sold 850 electric motorcycles, becoming the fastest-growing EV maker in the country amid regulatory and supply-chain hurdles. Its motorcycles, capable of traveling up to 150 kilometers (93 miles) on a single charge, are particularly popular for business deliveries.
Dodai’s success has drawn government interest, particularly from Ethiopian Investment Holdings, which plans to establish 300 battery swapping stations over the next three years. This initiative allows electric vehicle owners to quickly exchange depleted battery packs for fully charged ones, enhancing accessibility to EVs in a nation where power instability and a lack of charging locations are common challenges.
Founded in 2022 by Japanese entrepreneur Yuma Sasaki, Dodai’s electric motorcycles have quickly gained a following among local businesses. For instance, a wedding store in Addis Ababa, Sheger, transitioned from gas-powered bikes to Dodai’s models last year due to substantial savings on fuel and maintenance costs. Its owner, Kibrom Hagos, highlighted the advantages of charging the bikes on-site and the improved service provided to clients.
Selling at $1,800 each, Dodai’s bikes are slightly more expensive than competitors such as Yadea and Transsion. Despite this, the model has appealed primarily to both small and large businesses, with the Ethiopian Postal Service becoming a significant partner even before broader retail sales began. This relationship has bolstered Dodai’s customer base significantly.
Dodai distinguishes itself through the use of advanced lithium-ion batteries, as opposed to competitors that rely on lead-acid batteries. Industry experts have identified the fixed battery model as particularly suitable for businesses that typically have home charging capabilities, thus meeting the high demand for delivery motorcycles in Ethiopia.
The company is taking proactive measures to circumvent regulatory challenges surrounding motorcycle registration. By partnering with Beatrix, a licensed GPS provider in Ethiopia, Dodai is easing the installation of tracking systems necessary for vehicle registration, thereby reducing costs for buyers. Its initiatives have enabled Dodai to dominate the EV motorcycle market in terms of having registered bikes.
However, hurdles remain, particularly in obtaining registration numbers which complicate financing through banks for many independent riders. Regulatory and supply chain issues continue to impede Dodai’s growth, as customs delays can extend beyond three weeks, impacting the availability of parts essential for production.
The battery swapping stations promise to alleviate charging problems while simplifying the transition to electric motorcycles. With the partnership between Dodai and Ethiopian Investment Holdings, there is optimism that regulatory barriers will become easier to navigate and that sales will increase.
This partnership strategically positions Dodai to manage the new battery swapping stations while Ethiopian Investment Holdings will supply necessary resources, including stable power and land. This approach could significantly reduce the upfront costs for consumers, making electric motorcycles more affordable, and increasing Dodai’s competitiveness against major Chinese manufacturers.
Dodai has secured $7 million in funding from Japanese investments, with plans to raise an additional $10 million to fuel its growth. Sasaki expressed a preference for Japanese investors, emphasizing their long-term commitment amidst various challenges including regulatory changes and market uncertainty in Africa.
The battery swapping initiative represents a substantial investment in technology and infrastructure as Dodai prepares to open its first 100 stations this year. Moreover, the company intends to maintain its fixed battery model while also adjusting strategies according to market demands, ensuring they cater effectively to both delivery and commuter segments of the market.
Dodai’s rapid ascent as Ethiopia’s leading electric vehicle manufacturer highlights the significance of innovative solutions in addressing local challenges such as energy shortages and regulatory barriers. The strategic alliance with Ethiopian Investment Holdings promises to enhance infrastructure and accessibility, paving the way for more sustainable transportation alternatives in Ethiopia. As Dodai continues to expand and adapt, its model offers valuable insights into the future of electric mobility in emerging markets. Their focus on customer needs and regulatory navigation appears critical for ongoing success in the competitive EV landscape.
Original Source: restofworld.org
