New draft automotive development policy promises incentives for Electric, Hydrogen-powered and LPG vehicles

Published on: 14 May 2025

Charging equipment for electric vehicles will be exempt from tax
The draft policy widens that tax gap by imposing an additional 20% excise tax on every new passenger car or light commercial vehicle that lands in CBU at the port
Importers will also have to present emissions and road-worthiness certificates before shipment
Ministry wants to close another gap between consumers and lenders by introducing an asset-based vehicle loan (car as collateral)
Multiverse Enterprise Plc teaming up with the Defense Engineering Industry Corporation to assemble and finance about 5,000 diesel and electric taxis.
Commercial Bank of Ethiopia (CBE) endorsed the plan, earmarking 17% of a 35-billion-Br fund for down payments.
Multiverse wants to swap 15,000 cabs and claims to have supplier credit in forex.
The draft’s export section eyes the African Continental Free Trade Area