1. Market Research
  2. > Automotive
  3. > Motor Vehicle Market Trends

Automotive Markets and Financing in Africa—Kenya and Nigeria 

  • January 2016
  • 26 pages
  • Frost & Sullivan
Report ID: 3577845


Table of Contents

Automotive Markets and Financing in Africa—Kenya and Nigeria : West and East Africa Expected to Become the Fastest-Growing Vehicle Markets by 2030

This market insight provides a consolidated overview of the economic climate and the automotive and vehicle financing markets of Nigeria and Kenya. The study looks into trends driving sales and leasing and the associated behaviour of buyers, while discussing macroeconomic challenges related to the wider economy and banking sector. It examines new car sales figures, the top-selling vehicles, and the effects of the secondhand market in each country. It looks at the banking sector in each country and discusses how policies affect vehicle financing.

Executive Summary

This market insight provides an aggregated overview of the economic climate and the automotive and vehicle financing sectors in both Kenya and Nigeria. As relative economic and political stability are achieved in Africa, international companies are establishing operations in countries offering the greatest growth. With strong fundamentals and expanding populations, Nigeria and Kenya represent key regional hubs for West and East Africa, respectively.

The implementation of industrial policies is fostering investment in assembly plants in Nigeria and Kenya, which is critical to providing competitively priced vehicles while developing industry. The new car sector does, however, face a number of challenges that hinder its growth

New car sales in relation to population size are low when compared with the developed world, at new car per every people in Nigeria and 1 per in Kenya; however, forecasts suggest that West and East Africa will become the fastest-growing car markets worldwide by 2030. As GDP per capita reaches the tipping point, it is believed that car sales will increase considerably — Nigeria is nearing this point, but Kenya continues to lag behind. This insight examines sales figures, top-selling vehicles, and the secondhand market. The Kenyan banking sector is well-established and stable, yet innovative in the introduction of “easy-pay” products that have been recognised internationally.

The Nigerian banking sector encounters a number of challenges with concerns relating to corruption, regulation, and non-metered fiscal policies. Banking profits in both countries have grown, with strong numbers in leading Nigerian banks; however, an economic decline that began in late 2015 in both Nigeria and Kenya is negatively impacting sector performance. Vehicle financing trends differ significantly, with penetration levels in Kenya far outpacing those in Nigeria. The underdeveloped banking culture in Nigeria combined with interest rates rising above % are creating cause for concern. Government initiatives are expected to reverse this trend, yet regulatory concerns continue to delay progress.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Veronica helps you find the right report:


The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Future of Flying Cars, 2017–2035

  • $ 7500
  • Industry report
  • May 2017
  • by Frost & Sullivan

Over 10 Companies Poised to Launch Flying Cars by 2022, with OEMs and Other Major Industry Participants Set to Join them with Prototypes in the Following 5 Years This study provides a comprehensive insight ...

Automotive Relay Market by Type, Load & Application, ICE & EV, and 48V Relay Market - Global Forecast to 2022

  • $ 5650
  • Industry report
  • June 2017
  • by MarketsandMarkets

“Increasing modernization of vehicles and stringent government norms regarding safety and comfort will drive the automotive relay market” The automotive relay market is projected to grow at a CAGR ...

Ride Hailing Market By Service Type, Data Service, Connectivity, Vehicle Type & Region Global Forecast to 2025

  • $ 5650
  • Industry report
  • July 2017
  • by MarketsandMarkets

“Growing need for personal mobility in wake of rising urbanization and fall in car ownership are expected to fuel the demand for Ride Hailing” The Ride hailing market is projected to grow at a CAGR ...

Global Automotive Eps Market

July 2017 $ 4250


Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.