Electric mobility in Uganda is steadily growing and all signs indicate a very promising future for the industry. With several private companies actively offering electric vehicles, demonstrating growing consumer interest, and the government engaging with private e-mobility operators and international development partners to explore ways to transition to greater use of electric vehicles; the runway is clear.
One key stakeholder in the industry’s growth is CFAO Motors Uganda, formerly Toyota Uganda, which is significantly driving its efforts towards e-mobility inclusivity going forward.
I had a chat with Thomas Pelletier, the Managing Director of CFAO Motors Uganda, on the sidelines of a discussion on “E-mobility in Uganda” organized by the Club d’Affaires de Kampala. Our chat revolved around e-mobility adoption in the country, how far the players are collaborating, what his company is doing, the opportunities ahead, and the customer sentiments.
Adoption is still in early stage
Pelletier emphasizes that Uganda is still at the early stages of e-mobility adoption, with many people unaware of the technology and its benefits. “People are aware, but I don’t even think they have seen this, except maybe the electric bikes or something. It’s not adopted yet, as of now,” he says.
The main challenges include high upfront costs, fears about spare parts and maintenance, and the lack of infrastructure for e-mobility.
Obviously, the most expensive part of an EV is the battery, which is still a relatively new and evolving technology. Additionally, these vehicles require more advanced manufacturing processes and materials, such as lightweight materials and high-performance electronics, which increase production costs.
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To drive the adoption, Pelletier stresses the need for collaboration among stakeholders, including the government, private sector, and technical schools.
“We [need to] sit with the players in the e-mobility space, and when I say the players, I really look at it from the large perspective, the four-wheelers, the three-wheelers, the two-wheelers. To sit and discuss,” he explains.
He also highlights the importance of government support through mid-term to long-term policies with incentives to encourage private sector investment in infrastructure and capacity building.
Pelletier identifies several opportunities for e-mobility growth in Uganda, including the increasing demand for environmentally friendly solutions and the availability of renewable energy sources.
“In terms of opportunities, you have a lot of organizations that are very concerned more and more, about the environment. So for us, of course, the opportunity to respond to a demand, so we want to work hand-in-hand with them,” he said.
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CFAO’s e-mobility strategy
CFAO Motors Uganda is currently focusing on hybrid vehicles, which are self-charging and fuel-efficient. “We have hybrid vehicles. They are self-charging vehicles. It’s a technology that has been used by Toyota for over 20 years. So we know it’s very reliable,” Pelletier says.
At least, this is evident with the Toyota Corolla Cross Hybrid Electric as well as the Hybrid Grand Vitara – two vehicles that have made car efficiency and performance easier in Uganda by combining an electric motor with a gasoline engine.
He adds that they know that hybrid vehicles are very reliable and fuel-efficient.
“One of the key benefits is that they are self-charging, which means they charge when you decelerate or brake, eliminating the need to plug them into a power socket. From the consumer’s perspective, this makes them very easy to use, just like a normal car. The only difference is that they consume significantly less fuel and emit less carbon dioxide. This is our current strategy, and we plan to expand our range of hybrid vehicles in the future.”
The feedback from CFAO’s customers has been overwhelmingly positive, with many appreciating the cost savings and environmental benefits of hybrid vehicles.
“The feedback we have from our customers is [that they are] very happy to be buying a car, which right now is at the same price as a conventional vehicle, thanks to the incentives on import duty. So our customers are happy because they’ve got a [hybrid] car for the same price but that consumes way, way, way less than a usual car,” Pelletier adds.
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Rent-to-Own Model for Electric Fleet
The company is also considering introducing fully electric vehicles, pending government policies that will determine investment requirements. To address customer fears about cost, maintenance, and charging, CFAO is planning to introduce a rent-to-own model for these electric vehicles.
“It would be mostly for corporate organizations, in a way to demystify ownership of electric vehicles. When we launch it, we shall go into a rental scheme which will help to address the customer fears about cost, maintenance, and charging,” Pelletier explains.
The beauty about it? When you rent a product, you can change your mind. “So, this [model] is to give them an easier access to the experience, without committing to a bigger amount of investment of buying a car,” he states.
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