Dodai: Ethiopia’s Fastest-Growing EV Manufacturer and Its Impact

Dodai, founded by Japanese entrepreneur Yuma Sasaki, has become Ethiopia’s fastest-growing EV maker by offering battery-powered motorcycles. The company sold 850 units in under a year, partnering with the government to establish battery swapping stations. Despite challenges, Dodai is well-positioned to navigate regulatory hurdles while serving both delivery businesses and commuters.

In Ethiopia, where only half of the population has access to electricity, the startup Dodai is capitalizing on the demand for battery-powered motorcycles. Launched less than a year ago, the company has quickly become the nation’s fastest-growing electric vehicle (EV) maker, selling 850 units amid regulatory and supply-chain challenges. Dodai’s motorcycles, capable of conveying up to 150 kilometers on a single charge, are becoming a preferred mode of transport for delivery businesses.

The Ethiopian government has recognized Dodai’s success, as the Ethiopian Investment Holdings plans to establish 300 battery swapping stations within the next three years. These stations will facilitate the quick exchange of depleted batteries for fully charged ones, making EVs more feasible in a country where electricity is inconsistent and charging stations are limited.

Founded in 2022 by Japanese entrepreneur Yuma Sasaki, Dodai has garnered attention from local businesses. One example is Sheger, a wedding store in Addis Ababa, which transitioned from fossil-fueled delivery bikes to Dodai’s electric models. Store owner Kibrom Hagos noted significant savings on fuel and maintenance due to the switch.

Dodai’s electric motorcycles are priced at $1,800 each, surpassing competitors like Yadea and Transsion by about $500. Despite the higher cost, the company effectively serves both smaller enterprises and large institutions, with the Ethiopian Postal Service becoming its largest customer even before bikes were publicly available. Dodai differentiates itself by utilizing lithium-ion batteries, unlike competitors who rely on less efficient lead-acid batteries.

To address the regulatory challenges of motorcycle registration in Ethiopia, Dodai has forged a partnership with Beatrix, a GPS provider. This collaboration not only expedites the installation of required tracking systems but also allows the company to subsidize the costs associated with obtaining a license plate. Sasaki has stated that Dodai exclusively controls the EV bike registration in a competitive landscape.

However, challenges persist, including delays in customs clearances for electric parts and registration hurdles that deter banks from lending to gig workers. The anticipated battery swapping model is expected to mitigate charging issues significantly. Experts believe that cooperation with Ethiopian Investment Holdings will enhance Dodai’s ability to navigate evolving regulatory landscapes more effectively.

As the partnership evolves, Dodai will oversee the operation of battery swapping stations, while Ethiopian Investment Holdings will ensure consistent power supplies and site availability. This model, utilized in various African nations, enables customers to pay incrementally for battery usage rather than upfront costs, potentially reducing the initial purchase price of an electric motorcycle significantly.

Sasaki expressed confidence that the battery swapping initiative would establish Dodai’s market dominance before competition from larger Chinese firms intensifies. The venture has secured $7 million primarily from Japanese investors, with plans to raise an additional $10 million to further solidify its leadership role in the market. Sasaki, who previously worked at Uber in Japan, emphasized the importance of long-term investment, particularly in a region facing regulatory and infrastructural challenges.

The battery swapping initiative will involve considerable investment in technology for tracking and managing battery performance. Dodai has prepared the necessary software systems and plans to launch the first 100 battery swapping stations within the year. The company’s strategy aims to maintain its fixed battery model while adapting to market needs, ensuring that it caters effectively to both delivery services and commuter markets.

Dodai has swiftly positioned itself as a leader in Ethiopia’s electric vehicle market through its innovative approach to battery-powered motorcycles. The establishment of battery swapping stations in collaboration with the Ethiopian Investment Holdings further enhances the accessibility of EVs in Ethiopia. Despite regulatory and supply-chain hurdles, Dodai’s commitment to supporting its customers ensures its growth trajectory remains strong. By investing in both battery swapping and fixed battery models, Dodai is effectively balancing market demands and ensuring a sustainable future.

Original Source: restofworld.org