Transsion’s New Direction: From Smartphones to Solar Power

Africa’s leading smartphone manufacturer, Transsion Holdings (parent company of Tecno, Infinix, and Itel brands), is strategically expanding beyond its core handset business. While maintaining a strong presence in the mobile market (controlling roughly 50% of Africa’s smartphone sales), the company is making significant inroads into renewable energy solutions.

Shifting Market Dynamics

The decision comes as Transsion faces increased competition in the smartphone sector, particularly at the lower end. In the first half of 2024, revenue from its African operations dipped by 4.45% to CNY 9.65 billion (approximately USD 1.3 billion), with handset sales declining by 18.41% year-on-year.

Renewable Energy Initiatives

Transsion’s diversification includes:

  • Home solar systems: Through Itel and Oraimo brands, offering affordable solutions for households lacking reliable electricity - gaining traction in Nigeria where many still rely on generators or traditional fuel sources
  • Electric vehicles: Launching TankVolt (electric two-wheelers & tuk-tuks) first in Uganda then expanding to multiple countries; now ranks among Africa’s top 3 EV brands by units sold
  • Revoo electric motorcycles: Introduced in Nigeria, offering another option for consumers seeking sustainable transportation

The company is leveraging its existing strengths—affordable products tailored to local needs, extensive distribution networks, and after-sales support—to capture market share in these new sectors.

Strategic Partnerships & Investments

Transsion recently deepened its commitment through NewTrails Capital (a growth-stage fund where Transsion owns a stake). NewTrails completed a USD 55 million investment in Spiro, Africa’s largest electric vehicle and battery-swapping company—one of the continent’s biggest clean technology funding rounds.

Spiro operates over 2,500 battery-swapping stations across seven African markets (including Kenya, Rwanda, Uganda, Nigeria, Cameroon) supporting a fleet of more than 100,000 electric motorcycles. They have raised approximately USD 557 million in total funding.

Future Outlook

With Africa’s electric two-wheeler market projected to grow from 1.9 million units annually (2023) to 2.3 million by 2030, and the overall EV market reaching USD 28 billion by then, Transsion is strategically positioned for expansion—applying its proven playbook to a high-growth sector while addressing Africa’s energy needs.