With increasing global emphasis on sustainability and environmental protection, new energy vehicles (NEVs) have become a key force in driving the transformation and upgrading of the global automotive industry.

Vietnam: A Rapidly Growing Market

Vietnam, a major economy in the ASEAN region, has attracted global investors with its rapid economic growth and immense market potential. As Vietnam's economy expands and urbanization accelerates, its NEV market, particularly in electric vehicles and battery swapping services, is experiencing unprecedented opportunities.

According to Vietnam's government plans, the country is transitioning toward electrification, aiming to cease the production, assembly, and import of gasoline-powered cars, motorcycles, and mopeds for the domestic market by 2040. By 2050, all motor vehicles in Vietnam are expected to use electric or green energy.

Rwanda: Pioneering Sustainable Transport

The Republic of Rwanda, located in East-Central Africa, is heavily reliant on motorcycles as a primary mode of transport in its capital, Kigali. Motorcycle taxis, known as "motos," play a crucial role in public transportation.

Starting in January 2025, the Rwandan government will stop registering gasoline-powered public transport motorcycles in Kigali, permitting only electric motorcycles for registration. This initiative is part of Rwanda's efforts to promote sustainable transportation.

Under the new policy, existing gasoline motorcycles will remain operational until they are phased out due to wear and tear but must comply with emission standards.

In June 2021, Rwanda partnered with the United Nations Development Programme (UNDP) to begin phasing out gasoline motorcycles, encouraging the adoption of electric motorcycles to reduce greenhouse gas emissions and air pollution. At the time, over 100,000 motorcycles were registered nationwide, including 46,000 used as motorcycle taxis, with 26,000 operating in Kigali alone. These motorcycles significantly contributed to deteriorating air quality and environmental damage.

Incentives Supporting the Transition

To support this transition, Rwanda has introduced incentives such as exemptions from import duties on electric and hybrid vehicles. These measures aim to promote the adoption of electric vehicles and motorcycles, aligning with the country's commitment to reducing greenhouse gas emissions.