PlugNRide, an Indian EV startup, has completed the construction of its assembly plant in Tanzania’s business capital, Dar es Salaam, its first production facility in Africa. The company makes electric two and three-wheelers. The company has announced it will soon be launching its complete product range in the market, designed to meet local needs.
Pic source: Plug & Ride
PlugNRide joins numerous foreign OEMs that have built EV assembly plants in Africa as demand grows. The OEMs import semi and completely-knocked-down (SKD and CKD) kits which generally attract lower taxes than fully-built EVs.
Tanzania has attracted less attention from EV investors than its East African peers like Kenya, Uganda, Ethiopia and even Rwanda. Its lack of major policy support has been a turnoff for investors, while demand for EVs remains spotty.
The completion of the plant marks a significant milestone in PlugNRide’s global expansion strategy, the firm said. The facility has been set up to manufacture electric three-wheelers and electric bikes, with an initial production capacity of 1,000 vehicles per month in a single shift. The plant is strategically positioned to cater not only to the growing demand within Tanzania but also to serve the broader East African market.
I’m proud to share that PlugNRide Tanzania is now ready to power up. Our assembly plant in Dar es Salaam is fully set up, equipped, and ready to roll. We believe the shift to electric transport is not just necessary — it’s inevitable — and we are committed to being at the forefront of this transformation. Very soon, we will be launching our complete product range in the market, designed to meet local needs with global standards. (Zafar Equbal - Founder and CEO)
Mr Equbal was in Tanzania to review the final readiness of the facility, accompanied by the company’s Africa partners. The Indian company is now gearing up for the official product launch scheduled for this month, which is expected to introduce a new range of high-performance electric three-wheelers and electric bikes to the market.
Tanzania is Africa’s fifth most populous country with over 70 million people. It has millions of motorcycles and three-wheelers, commonly known as tuk-tuks. Despite this, Tanzania has lagged behind its East African peers like Kenya and Uganda in terms of attracting real EV investments. The country lacks serious EV incentives, which makes EVs uncompetitive. The main alternative for fuel in Tanzania is CNG, which is cheaper and popular.
Despite this, the EV sector is gradually taking off. Foreign companies like PlugNRide are establishing new plants in the country, while Spiro, Africa’s largest electric motorcycle company, is doing pilot tests with a view to officially beginning operations. In the passenger vehicle segment, BYD, the world’s largest EV manufacturer, launched in Tanzania last month. In addition, other companies are joining the ecosystem in segments like swapping and charging.
There are just over an estimated over 5,000 electric vehicles on Tanzania’s roads, primarily consisting of two- and three-wheelers. But this is just a fraction of the country’s potential. Industry stakeholders say for Tanzania to make serious progress in its EV sector; it must roll out incentives such as tax cuts to make new energy vehicles competitive. They also believe the country should make it easier for foreign investors to establish in the country.
This story was first published by mobility rising.