Assessment of Market Penetration Communication Strategies for Electric Vehicles Assembled in Ethiopia: The Case of Belayneh Kindie Group Electric Vehicle Assembly Plant.
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Date
2025-04-20
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Addis Ababa University
Abstract
This study assesses the market penetration communication strategies employed by Belayneh Kindie Group (BKG) Metal Engineering Complex Assembly Plant; a domestic electric vehicle (EV) assembler, to enhance its market presence by promoting locally assembled EVs within Ethiopia’s emerging electric mobility sector. The research is motivated by Ethiopia’s push toward green transportation, supported by favourable policies and the country’s abundant renewable energy resources. Despite Ethiopia's policy incentives, including tax exemptions for local EV production, BKG faces significant challenges in driving consumer adoption, characterized by low awareness, infrastructural gaps, and high cost. Using a mixed-methods approach, the study combined quantitative data from structured questionnaires (n=102) and qualitative insights from interviews with key stakeholders, including company officials, marketing experts, and government representatives. The research explored consumer awareness levels, perceptions, and the effectiveness of BKG’s communication tools and channels. Findings reveal that 71.6% of respondents possess only partial EV awareness, with social media (45.1%) and TV/radio (26.5%) serving as primary information sources, yet 76% report no engagement with BKG's digital campaigns. Main obstacles include high prices (43.9%), charging infrastructure gaps (20.9%), and concerns about battery life. While 86% of respondents view EVs as Ethiopia's transportation future, fragmented messaging and underutilized policy incentives hinder progress. Findings reveal that the need for integrated strategies: targeted digital campaigns leveraging influencers localized educational initiatives, and transparent cost-benefit communication. Policy recommendations emphasize expanding charging infrastructure through public-private partnerships and formalizing tax incentives. Theoretically, the study advances the “Diffusion of Innovations and Strategic Communication” frameworks in emerging markets, while practically offering a roadmap for BKG and policymakers to align communication, infrastructure, and affordability strategies, fostering Ethiopia's transition to sustainable mobility.