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Chinese Companies Power Iraqi Kurdistan’s Shift to EVs

The Owner Press by The Owner Press
October 1, 2025
in Business News
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ERBIL, Iraq—Sooner or later in July, rush hour site visitors crowded Erbil’s 60 Meter Road, one in every of Erbil’s rising variety of ring roads, below a smoggy sky. Tan Nissan Sunny taxis merged towards the circulation of Ford SUVs and Kia sedans. Junky Toyota farm vans idled subsequent to expensive Land Rovers at cease lights. And Chinese language-made electrical automobiles from corporations comparable to BYD made up a large portion of the site visitors.

Iraq’s Kurdistan Area is shifting towards electrical automobiles as shoppers on this oil-rich place are more and more contemplating shopping for plug-in hybrids and full battery EVs over issues concerning the atmosphere, poor high quality gasoline, and the price of conventional automobiles. And because the area’s electrical energy infrastructure improves, individuals are additionally turning into much less frightened that they could find yourself stranded on a distant roadside with an exhausted EV battery.

ERBIL, Iraq—Sooner or later in July, rush hour site visitors crowded Erbil’s 60 Meter Road, one in every of Erbil’s rising variety of ring roads, below a smoggy sky. Tan Nissan Sunny taxis merged towards the circulation of Ford SUVs and Kia sedans. Junky Toyota farm vans idled subsequent to expensive Land Rovers at cease lights. And Chinese language-made electrical automobiles from corporations comparable to BYD made up a large portion of the site visitors.

Iraq’s Kurdistan Area is shifting towards electrical automobiles as shoppers on this oil-rich place are more and more contemplating shopping for plug-in hybrids and full battery EVs over issues concerning the atmosphere, poor high quality gasoline, and the price of conventional automobiles. And because the area’s electrical energy infrastructure improves, individuals are additionally turning into much less frightened that they could find yourself stranded on a distant roadside with an exhausted EV battery.

Chinese automakers are more likely to provide a lot of the new EVs. It’s a consequence not solely of Beijing’s growing soft power in Kurdistan—lengthy a bastion of U.S. affect—but in addition of China’s ascent as a significant vehicle producer in growing markets worldwide.

Earlier this yr, Arjang Ibrahim Zebari, a 30-year-old actual property agent, grew to become fed up with the excessive value of driving his Dodge SUV forwards and backwards between Erbil, the place he lives, and his mother and father’ home in Duhok. The roughly 100-mile drive between Kurdistan’s capital and its third-largest metropolis takes about two-and-a-half hours. “I spent an excessive amount of cash to return and go and had many issues with the engine and the tires and wheels,” he advised International Coverage, estimating that his automobile value him greater than $200 each month on fuel and repairs.

Zebari bought his Dodge and used the cash to purchase a BYD Qin L for $19,000. The plug-in hybrid mannequin manufactured in China has each an electrical battery and a fuel tank, which mix to offer the automobile a roughly 1,300-mile vary on a single cost. He not often visits the fuel station anymore and expenses his automobile as soon as each 15 days for a couple of {dollars}, far lower than the $45 he used to spend each week to fill his tank, he stated.

Zebari is happy along with his buy and stated he would take into account exchanging his plug-in hybrid for a full battery EV sooner or later. “Electrical automobiles are very pure and environmentally pleasant. I wish to go step-by-step with worldwide progress, not counting on our conventional issues,” he stated.



A large screen inside a Tesla car shows a street view of Erbil.
A big display screen inside a Tesla automobile exhibits a road view of Erbil.

The show of Muhammad’s Tesla taxi as he navigates site visitors in Erbil on July 19.

This story would have been absurd to jot down only a few years in the past. In 2021, a neighborhood radio station joked on social media that if Tesla ever made it to Kurdistan, its automobiles must be plugged into transportable gasoline turbines. However driving an EV on the streets of main cities comparable to Sulaimaniyah or Duhok turns into much less ridiculous daily now.

For many years, electrical energy provides in Kurdistan have been extremely unreliable as a result of power generation didn’t meet client demand. The vitality that was generated was not effectively transmitted; most individuals received less than 12 hours of energy per day on the general public grid. Iraqi Kurds needed to endure lengthy blackouts throughout peak demand durations within the scorching summer season and chilly mountain winter. They stuffed the gaps with extremely polluting and costly diesel turbines.

That’s slowly altering. Final yr, the Kurdistan Regional Authorities (KRG) launched a program to roll out 24-hour electricity throughout the area by the top of 2026. This system shifts the cost burden from the federal government to shoppers, which the KRG hopes will encourage extra accountable consumption and scale back demand. Up to now, this system operates solely in choose neighborhoods of main cities and isn’t but accessible in rural areas. Solar energy can be becoming more popular for houses and companies.

This new reliability permits EV and hybrid drivers to cost up at dwelling with out breaking the financial institution. Zebari stated it value him about $3.75 to cost his BYD at dwelling (although he might face higher bills with the brand new 24-hour program).

For drivers on the go, EV charging stations in Kurdistan are scarce and largely confined to house complexes, companies, and fuel stations within the extra upscale areas of main cities. However that is hardly a hurdle for a inhabitants that’s used to adapting to electricity challenges. (International Coverage noticed a Chinese language-made BYD Destroyer plug-in hybrid charging up from an extension twine working from a café by way of a fence to a public park in Sulaimaniyah.)

The Erbil Site visitors Directorate didn’t reply to a request for statistics on the variety of electrical automobiles within the area, nor did the KRG reply to a request for knowledge on EV adoption all through all the area.

Three years in the past, businessman Herish Noori opened a specialty electrical automobile automobile showroom in Erbil known as EV Mall. When International Coverage visited, a number of clients have been testing fashions of Chinese language manufacturers Avatar and BYD. A Kia EV9, which may retail for $80,000 in the US, was accessible for the wealthier clients, a lot of whom—sarcastically—made their cash in oil; Kurdistan has important oil reserves and presently produces about 250,000 barrels per day.

Noori declined to supply particular EV gross sales figures however claimed that they’ve elevated yr over yr. He expects that 25 to 30 p.c of all automobiles in Erbil might be electrical within the subsequent 5 years as client demand grows.

“Every single day, many individuals ask me about this automobile,” stated Zebari.

The KRG incentivizes the usage of electrical automobiles in delicate however essential methods. It waives each the customs tax for importing EVs in addition to registration and annual environmental fees, which collectively can run greater than $1,000 for typical automobiles, relying on the mannequin.



Signs reading "Parking" and "EV charging station" in English stand in front of cars and a high-rise building.
Indicators studying “Parking” and “EV charging station” in English stand in entrance of automobiles and a high-rise constructing.

An indication guides drivers to an underground electrical automobile charging station in Erbil’s Park View neighborhood with a brand new luxurious house complicated within the background on July 28.

Prior to now, the one Chinese language automobiles on the streets in Kurdistan have been the fundamental pick-up vans made by Nice Wall and Gonow that have been favored by farmers. However in recent times, new logos started to appear. Corporations comparable to BYD, Chery, Geely, Jetour, and the British-born however Chinese language-acquired MG at the moment are frequent sights on streets within the area.

Solely coincidentally, another Chinese language manufacturers typically have Kurdish-sounding names. They embrace Haval, which implies “comrade,” or Bestune, simply mistaken for the frequent Kurdish title Bestoon.

China is now the largest auto exporter on the earth after overtaking Japan in 2023. Its comparatively reasonably priced automobiles have discovered a foothold in emerging markets. EVs are a significant a part of the enterprise: In line with the Worldwide Power Company, Chinese language automobiles constituted 40 p.c of worldwide EV exports in 2024, at nearly 1.25 million. The worth of Chinese language EV exports has surged from $295 million in 2018 to $36.7 billion in 2023, the U.S. Worldwide Commerce Fee reported.

In contrast to another locations, comparable to nations in Europe or East Asia, Kurdistan will not be involved about China’s geopolitical positioning, which may complicate the presence of Chinese language companies. However Chinese language manufacturers nonetheless have some competitors from North American, European, and different Asian corporations.

Hemin Ahmed Muhammad drives what he claims is Erbil’s solely Telsa taxi. He purchased a Mannequin Y instantly from the US; he selected it as a result of he thought the supplies and software program are superior to Telsa’s rivals, he stated. Muhammad is a dwelling rebuke of the radio station’s 2021 gag that the corporate’s automobiles might by no means make it within the area. “My passengers actually prefer it,” he stated. “They take [Snapchats], movies, and TikToks and say to me: ‘Good job, each taxi ought to be a Tesla.’”

However regardless of such enthusiasm for the U.S. model, Noori estimated that 89 p.c of EVs in Kurdistan are Chinese language manufacturers or made in Chinese language-owned factories. This largely comes down to cost, he stated; based on Noori, Chinese language manufacturers are about 30 p.c cheaper than manufacturers from the US or Europe. Bloomberg reports that growing economies are among the many fastest-growing markets for EV expertise, with some claiming “greater adoption charges than wealthier nations.”

Kurdistan is an instance of how EVs have change into a viable transportation possibility in locations the place they have been punchlines only a few years in the past. Their worth competitiveness makes them an actual possibility for shoppers, whereas enhancements in electrical energy infrastructure tip the stability of their favor. They’re now popping up in showrooms all over the world, from Brazil to Vietnam—and the pattern exhibits no indicators of slowing down.

In Erbil, Muhammad stays assured that his Tesla taxi might be a part of a broader pattern. “I see the world and all over the place the longer term is electrical,” he stated.



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