ADDIS ABABA, Ethiopia (chinaevs.org) — Chinese automaker GAC Group officially entered the Ethiopian market on May 17, launching two new energy vehicles (NEVs) and announcing plans to establish a localized automotive ecosystem in the East African country.

At a launch event in Addis Ababa, GAC introduced the all-electric AION Y Plus and plug-in hybrid SUV ES9, aiming to offer more environmentally friendly transportation options in Ethiopia. The company also unveiled its “Ethiopia Initiative,” a strategy to develop a full value chain in the country, including local manufacturing, sales, after-sales service, and charging infrastructure.

The move comes as Ethiopia implements a ban on fuel-powered vehicle imports, making it one of the first countries to do so. Officials say the policy is part of a broader push toward sustainable development.

“This project is a significant outcome of China-Ethiopia industrial cooperation,” said Chinese Ambassador Chen Hai at the event. “It is expected to create jobs and support green growth in the region.”

Ethiopia’s Minister of Transport and Logistics, Dr. Alemu Sime Feyisa, welcomed GAC’s entry, citing the vehicles’ market potential and pledging government support for the company’s expansion.

GAC Chairman Feng Xingya described Ethiopia as a promising market, citing its population of more than 120 million and growing demand for vehicles. He said the current regulatory shift creates a timely opportunity for the adoption of NEVs.

GAC’s local partner, Huajian Group, plans to support the initiative by building EV charging infrastructure and creating a full-scale automotive industrial cluster in its Addis Ababa industrial park. The cluster will include vehicle assembly, sales, maintenance, and energy services.

GAC signed a distribution agreement with Huajian in April and has since taken part in several local trade events. Its first showroom in Addis Ababa has begun trial operations, and the company plans to expand to other major cities by year’s end. A knock-down (KD) assembly plant is also in development to enable local production.

The Ethiopian Investment Commission confirmed that the project will be incorporated into the country’s national automotive development plan and contribute to the “Made in Ethiopia 2025” strategy. Commission head Dr. Zeleke Temesgen Boxu said GAC’s investment is not just commercial, but also strategic in supporting industrial modernization.

Ethiopia, positioned as a hub for East Africa, plays a key role in regional trade and infrastructure. GAC officials said the company hopes to use its Ethiopia experience as a model for future cooperation across Africa in the field of new energy transportation.