Country and Vehicle Type (Passenger and Commercial Vehicles) Sectors of the African Automotive Market (South Africa, Morocco, Algeria, Egypt, Nigeria, Ghana, Kenya, and the Rest of Africa). The research provides forecast values and market sizes for each of the aforementioned segments (in USD billion).
Market analysis for automobiles in Africa
The African automotive market, which is currently valued at USD 30.44 billion, is anticipated to grow to USD 42.06 billion over the following five years, reflecting a CAGR of 5.55%. Over the following five years, the African automotive industry is anticipated to expand at a CAGR of 5.55%. The COVID-19 epidemic had a serious negative impact on the auto industry in Africa.
African automobile industry expansion
Due to favourable government incentives and expanding urbanisation, the African automotive market is anticipated to expand quickly. Several larger nations, including Nigeria and Kenya, are concentrating on strategies to enhance domestic vehicle production. The region's major automotive sector issues include a lack of domestic automobile production capacity and escalating used vehicle market competitiveness.
It Is Anticipated That South Africa, Nigeria, And Kenya Would Grow.
The NAIDP increased the existing 35% tariff on imported autos by 35%, bringing the overall cost of these imports to 70%. Nigeria objected to the levies and 70% import tariff levied on imported cars. The majority of regional businesses, however, saw an increase in their manufacturing capacity and techniques, which increased the number of locally assembled and produced cars in the nation. South Africa, Nigeria, and Kenya are expected to experience positive growth as a result of the emphasis on enhancing domestic manufacturing.
The design, development, manufacture, marketing, and sale of automobiles are all activities that are carried out by a variety of businesses and organisations throughout Africa. The African automotive market research examines the continent's competitive environment and forecasts expansion for the automobile industry. The report includes information on South Africa, Morocco, Algeria, Egypt, Nigeria, Ghana, Kenya, and the rest of Africa.
African Automotive Market Trends
Our research experts believe that the following significant market trends are having an impact on the African automotive market:
Growing Sales of Passenger Cars Will Benefit the Market
833,020 passenger automobiles were bought by African motorists in 2021, with South Africa being the most popular nation. Mitsubishi Motors introduced the revised Triton line of 4x2 Single Cab trucks in the South African market. A 2.4-liter turbo-diesel engine with a peak torque of 324 Nm and an output of 100 kW powers the vehicles.
South Africa is anticipated to have a substantial impact on market share.
The largest market for passenger vehicles in the world is in Africa. South Africa exports passenger vehicles to many other countries, mostly to Europe. Exports increased by 6,468 units, or 39.7%, to 22,771 units in January 2021, the second consecutive month of strong growth.
Some of the biggest OEMs in the world are investing in the nation because of the favourable environment. Others concentrate on attracting more customers by showcasing gorgeous models. The most recent models are being actively sought after by numerous OEMs to export into the South African market.
Competition in the African automotive market
African businesses are concentrating on a range of expansion methods, such as collaborations, product launches, and increased production, to maintain a competitive advantage in the market. Taking the new Corolla Cross Hybrid small SUV as an example, Toyota South Africa stated in November 2021 that it would produce the vehicle there. Volkswagen will also launch its all-electric ID.4 test fleet by the end of 2022 as part of its second expansion phase.
Newest Adjustments To The African Automobile Industry
The brand-new production facility for the GMD Group subsidiary GMD Metal Tanger in Tangier Automotive City officially launched on October 1, 2022. The automotive manufacturers Renault and Stellantis will be able to integrate locally thanks to this unit. It will also ship to customers in Europe and Latin America.
Egypt and the Greek island of Stellantis signed a Memorandum of Understanding in September 2022 to strengthen their cooperation. The Memorandum of Understanding is in line with the assistance offered by the newly made public Egyptian government policy for the automotive sector. JH6 33.420FT was made available to both domestic and international markets by FAW SA in AUG 2022. Euro 2 requirements are met by the 11,040 cc six-cylinder inline water-cooled, turbocharged engine. The engine generates more than twice as much power as its European version, 312 kW at 1,900 rpm and 1,800 Nm of torque.
According to a statement from Toyota South Africa Motors (Pty) Ltd., which was published in July 2022, the all-new Toyota Crown would go on sale in South Africa in the first quarter of 2023. It will be driven by an electric drivetrain and a newly created 2.4-liter turbo hybrid system.