Electric vehicle adoption and business model transformation in emerging markets: a comparative analysis of South Africa & Kenya

Abstract

The global automotive industry's move to electrification and digitalization has presented a unique challenge for this industry as well as bringing great opportunities particularly in emerging markets (Lin et al., 2025). Existing research did not properly address the contextual factors that shape electric vehicle (EV) adoption and business model innovation in Africa. This study explore seeks to explore these dynamics across South Africa and Kenya using qualitative, exploratory approach and making use of 16 semi-structured interviews with key industry stakeholders. Thematic analysis revealed that although the total cost of ownership was a key driver within the two markets studied, there where barriers that these markets faced that included high upfront costs, policy uncertainty, and inadequate charging infrastructure (Mesquita et al., 2025). The findings also revealed that digitalization enabled new revenue streams in these markets that are starting to transform the existing traditional value chains (Pizzichini & Rossi, 2025). The research offered a strategic framework for stakeholders as well as contributed to theory in terms of contextualizing the Technology Acceptance Model (TAM) and Business Model Innovation (BMI) frameworks for these markets (Chanda & Tarei, 2024).