Strides in the electric vehicle (EV) sector, aligned with its green hydrogen initiatives, face significant hurdles, according to investment research firm, Simonis Storm Securities (SSS).
The firm in an analysis report last week underscored that, while the introduction of the high-end, Chinese manufactured, Great Wall Motor (GWM) ORA 03 300 Super Luxury by local retailer, Pupkewitz GWM showcased innovation in sustainable transportation, the steep price tag of N$699,900 highlights economic barriers hindering widespread EV adoption.
“This cost factor raises significant concerns about the accessibility of EV technology to the wider population,” the firm said, furthermore noting that the lack of a robust EV charging infrastructure in Namibia presents a considerable obstacle.
According to SSS, despite advancements in renewable energy, such as the ambitious green hydrogen projects, the country faces the challenge of establishing the necessary infrastructure for EVs.
“This gap hinders the practicality and appeal of electric vehicles, potentially slowing down their adoption,” SSS said, adding that in response to these challenges, local startups like e-Car Namibia are emerging in the sector.
SSS notes that while this startup activity is in its early stages, it signifies Namibia’s commitment to overcoming barriers on the path towards sustainable mobility.
“Focused on converting internal combustion engine vehicles to electric, e-Car Namibia is addressing both the demand for EVs and the need for more affordable options. Their initiatives, which include retrofitting popular models like Land Cruisers and providing solar-powered EV stations, reflect a growing entrepreneurial spirit in Namibia’s EV market,” the firm noted.
Meanwhile, SSS recognizes the country’s power utility’s Battery Energy Storage System project in Erongo (construction commencing in February), as a leap forward in energy storage, however, they underscored the complexity and financial intensity of infrastructural development required for a successful green transition.
SSS is of the view that strategic solutions and concerted efforts will be crucial to fully realizing the potential of electric vehicles and renewable energy in Namibia’s automotive sector.
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