This archive report was first published on 30 October 2019.
October 30, 2019, marked a significant milestone for Volkswagen as it launched an electric car ride-hailing service in Rwanda. The move is part of the company's strategy to increase its market share globally and establish a foothold in the African market.
The service, which will be powered by 50 eGolf models, will be integrated into the company's app-driven 'Move' service, launched last December. The vehicles, which are combustion-engine cars modified to run on electricity, will be charged at 15 charging stations built by German power equipment firm Siemens.
According to Thomas Schaefer, VW's Africa boss, the company has invested over $30 billion in new electric vehicles and platforms, and the world is moving in that direction. The plan for Africa is to replace the entire fleet with electric vehicles.
Initially, the service will start small in Kigali, but Volkswagen hopes to expand to other nations in the region. The company has a global target of producing 600,000 electric cars a year by 2022.
Speaking to Reuters, Schaefer acknowledged that the high price of electric cars may not appeal to most African consumers, but he believes that scaling up production and favourable government policy could help bring prices down.
Prime Minister Edouard Ngirente expressed hope that electric car use could expand in Rwanda, noting that fuel products were the country's biggest import last year.
