Chinese electric-vehicle manufacturers Neta Auto and Xpeng Motors are ramping up their push into Africa, shifting their overseas strategies amid trade frictions with Europe.

Neta, a brand developed by EV startup Hozon New Energy Automobile, opened a flagship store in Kenya in late June. The dealership is Neta’s first in Africa.

Neta plans to enter 20 African countries in the next two years. It aims to open 100 dealerships and sell more than 20,000 units in the region within three years.

Kenya “serves as a gateway to Southern, Central, and Eastern Africa,” Neta said in a news release.

Chinese EV manufacturers until now had focused their overseas expansion strategies on Europe and Southeast Asia. Europe received 40% or so of China’s EV and plug-in hybrid vehicle exports in 2023, industry data shows.

But the European Commission announced in mid-June countervailing tariffs of up to 38.1% on imports of China-built EVs, effective Thursday. It argued that the vehicles benefit from Chinese government subsidies, infringing on fair competition in the European common market.

Amid concerns over the move’s impact on sales of Chinese EVs, automakers are placing greater importance on alternative markets like the Middle East and Africa.

Xpeng announced in mid-June that it was beginning sales of two EV models in Egypt: the G9 sport utility vehicle and the P7 sedan.

Leading Chinese EV maker BYD started selling the Atto 3 SUV last year in South Africa, the largest market on the continent. The Atto 3 started at 768,000 rand (around $41,000) — an ambitious price tag nearly triple that of the Volkswagen Polo Vivo, a popular compact car in South Africa.

“We believe we can provide all of our South African customers with vehicles that not only meet their transportation needs, but exceed their expectations,” said Huang Zhixue, general manager of BYD’s Middle East and Africa auto sales division.

European and Japanese brands like Volkswagen, Toyota Motor and Suzuki Motor enjoy widespread recognition in Africa. But they have largely focused on gasoline-powered vehicles there and offer only a few EV models locally.

Chinese players see EVs and plug-in hybrids as the key to catching up in the region. Their strategy is to expand their lineups in Africa and gain greater recognition in order to draw environmentally conscious consumers, even at higher price points.

EVs are still rare in Africa and the Middle East, accounting for less than 1% of total car sales in those regions, according to the International Energy Agency.

But government policies to curb carbon emissions are expected to lift EV sales. South Africa looks to cut greenhouse gas emissions by 2030. Qatar aims to lift EVs to 10% of auto sales by that year.

The Saudi Arabian capital of Riyadh plans to have EVs account for 30% of the vehicles on the road by 2030 as well.

Avatr, an EV brand under state-owned Changan Automobile, announced in late June an exclusive distribution deal with an auto dealer in the United Arab Emirates. Shanghai EV maker Nio plans to expand to the UAE by year-end.

Africa and the Middle East are promising markets for autos generally. Lower income levels make used-vehicle sales the norm in Africa, but sales of new vehicles are expected to climb substantially as its economies grow.

New-vehicle sales in Africa will reach 1.52 million in 2036, up 53% from 990,000 in 2023, GlobalData predicts.

In the Middle East, new-vehicle sales are on track to grow 41% to 3.96 million units in 2036 from 2.8 million in 2023. More than 20 Chinese brands are being sold in the UAE, according to S&P Global — twice as many as in 2022.

Neta defines its overseas strategy as “deep rooting in ASEAN, standing out in South America, and developing in the Middle East and Africa.” BYD has assembled a roughly 100-member team to expand its sales network in Saudi Arabia.

Still, establishing a presence will be a long-term challenge in emerging regions like Africa, where power grids and charging networks are still in development. A competitive approach will require investing in recharging infrastructure and after-sales service.