Dodai: Ethiopia’s Fastest-Growing EV Maker Revolutionizing Local…

Dodai has emerged as Ethiopia’s fastest-growing EV maker, focusing on battery-powered motorcycles. Within a year, the startup sold 850 units, gaining attention from government efforts to enhance EV infrastructure. Founded by entrepreneur Yuma Sasaki in 2022, Dodai’s success is driven by unique business strategies and partnerships, addressing regulatory challenges and operational needs of local businesses while promoting a sustainable future for transportation in Ethiopia.

Dodai has quickly become Ethiopia’s fastest-growing electric vehicle (EV) manufacturer, specializing in battery-powered motorcycles, with 850 units sold within a year of launching. This startup has effectively catered to local businesses that benefit from its two-wheelers, known for their capacity to cover distances up to 150 kilometers (93 miles) on a single charge, addressing the needs of an energy-scarce nation.

With the backing of the Ethiopian government, specifically the Ethiopian Investment Holdings, Dodai is set to establish a network of 300 battery swapping stations within three years. This infrastructure will facilitate efficient battery exchanges, crucial for a country where stable electricity access remains a challenge, enhancing the accessibility of EVs significantly.

Founded by Japanese entrepreneur Yuma Sasaki in 2022, Dodai has attracted attention from businesses such as Sheger, a wedding store in Addis Ababa, which transitioned from traditional fossil-fueled bikes to Dodai’s electric models, yielding significant savings on fuel and maintenance, according to its owner.

Sold at $1,800 each, Dodai’s electric motorcycles cater primarily to small and large businesses, including an exclusive partnership with the Ethiopian Postal Service. The company stands out for utilizing lithium-ion batteries, unlike competitors offering lead-acid alternatives, providing a competitive edge in durability and efficiency.

Dodai has developed strategies to address the regulatory hurdles faced by motorcycle registrations in Ethiopia. Partnering with Beatrix, a GPS provider, has enabled Dodai to assist customers in acquiring mandatory tracking systems for vehicle registration, significantly reducing wait times from six months to two.

Despite these efforts, registration difficulties and supply chain issues persist, stymieing the potential distribution of additional bikes. Sasaki notes that under optimal conditions, the company could have significantly amplified its operations, placing up to 5,000 bikes on the roads.

With battery swapping stations, riders can quickly exchange depleted batteries, mitigating charging concerns. Experts suggest that the partnership with Ethiopian Investment Holdings may streamline regulatory processes and improve sales, as the government supports the normalization of electric motorcycles within the country.

The collaboration allows Dodai to operate the stations, while the government offers land and reliable power supply, enabling a unique financing model where riders pay for battery usage rather than full upfront battery costs, potentially halving the initial investment for an e-motorbike.

Dodai has successfully secured $7 million from Japanese investors and aims to raise another $10 million to strengthen its market position. As a participant in the evolving e-mobility landscape, Sasaki emphasizes the importance of long-term investment perspectives in navigating the complexities of the African market.

The impending battery swapping initiative requires extensive investment in hardware and software to ensure effective performance tracking, with plans to establish initial sites and launch 100 stations within the year. Dodai will maintain its fixed battery model while continuing to adapt strategies based on market dynamics and customer preferences between the two models.

Overall, Dodai seeks to balance its approach in serving both delivery riders who favor battery swapping and commuters who may lean toward the fixed battery model while ensuring operational flexibility.

Dodai’s rapid growth as Ethiopia’s leading electric vehicle manufacturer illustrates the demand for sustainable transport solutions aligned with local needs. Key partnerships and innovative strategies address regulatory and infrastructural challenges, paving the way for enhanced accessibility to electric motorcycles. By leveraging governmental support and adapting its service models, Dodai aims to solidify its market presence while promoting eco-friendly practices in the region.

Original Source: restofworld.org