1. Market Research
  2. > Automotive Market Trends
Africa Automotive Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Africa Automotive Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • March 2021
  • 86 pages
  • ID: 6036747
  • Format: PDF
  • Mordor Intelligence LLP

Summary

Table of Contents

Search Inside

The African automotive market is valued at USD 28.45 billion in 2020, and it is expected to reach USD 39.87 billion by 2026, registering a CAGR of 5.55% over the forecast period.

However, the outbreak of pandemic COVID-19, impaced the market very badly and majority of markets in the region have not recovered and the demand is still lagging behind the pre-COVID levels.

The demand for new vehicles across the African region has increased until 2018. During 2019, due to a slowdown in economy, the sales of new vehicles has decreased by 4% to 1.17 million units, as compared to 1.22 million units in 2018. Passenger cars accounted for 73.81%, while commercial vehicles accounted for 26.18%.

Although there was a decline in the overall sales of new vehicles, commercial vehicles in 2019 has increased by 0.33% to 308,319 units as compared to 307,301 units sold in 2018. Furthemorer, Egypt in 2020 has witnessed increase in new vehicle sales by 26.55% to 231,238 units in 2020 as compared to 182,713 units sold in 2019.

The African market has one of the highest growth prospective across the world. Multinational vehicle manufacturers currently setting up production plants in Angola, Ethiopia, Ghana, Kenya, Namibia, Nigeria, Rwanda, South Africa and other countries, are a clear indicator that there is potential to boost manufacturing for the automotive market in this region. South Africa, Egypt, Morocco, and Algeria have sizeable automotive assembly and manufacturing sectors.

Key Market Trends
Growing Economy and Government Initiatives Expected to Help the Automotive Industry

The African market has high growth prospects. For a continent with 1 billion inhabitants, it only occupies 1% of the global new car sales. Also, 85% of the total new cars are sold in South Africa itself. The sub-Saharan region where there is a potential for upto 3-4 million cars from the existing number of around 425,000 is expected to offer high returns to players who are willing to seriously enter the region.

After the formation of Association of African Automotive Manufacturers (AAAM) companies are expected to benefit from reforms and policies. For instance, any car company that sets up a local assembly plant in Nigeria, Kenya and Ghana, could get tax holidays of up to 10 years and duty exemptions.

The level of infrastructure is also increasing in Africa, which is likely to aid the automotive market of the region. Western and Northern Africa is expected to drive the growth till 2023, where countries like Ghana and Morocco are expected to be the key players.

Ghana aims to become a developed country by 2030, and even if the target is met halfway, the Ghanaian automotive market is anticipated to grow at a tremendous pace, as the economic growth is directly proportional to the growth of automotive markets.

Morocco’s integration into the global economy was facilitated by the signing of numerous free trade agreements with the European Union and the United States. These trade agreements contributed positively toward the emergence of export activities in the country.

Also, the country developed an investment cluster program, which saw Renault enter the local market. Renault will be the only global automaker assembling vehicles in the country, until the arrival of Peugeot in 2019.

South Africa Expected to be the largest automotive industry in the continent

The South African automotive industry is the largest in the region. However, during the year 2019, it witnessed slight downfall in sales figures. During the year 2019, 355,378 units were sold as compared to 365,242 units in the year 2018, which is a fall of around 2.7%. Similarly, the commercial vehicle segment in the country witnessed a downfall of around 3.07% and registered sales of 181,233 units of commercial vehicles sales in the year 2019. In 2020, according to the National Association of Automobile manufacturers of South Africa, the vehicle sales in the country declined by 29.1%, which is because of the pandemic COVID-19.

The country is a hub for exports of passenger cars in several other parts of the world, especially Europe. Export sales, recorded a second consecutive month of solid growth in January 2021 and at 22,771 units reflected an increase of 6,468 units, or 39,7%, compared to the 16,303 vehicles exported in January 2020. Several major OEMs, from all over the world are investing in the country, for instance,

- In April 2019, Ford announced that Ford Motor Company of Southern Africa (FMCSA) is expanding its vehicle export operations by adopting a multi-port strategy with the first shipment of 1,000 locally assembled Ford Rangers from Port Elizabeth to markets in Europe.
- In April 2019, Nissan announced that it is investing a ZAR 3 billion in its facility in Rosslyn, Pretoria to produce the next generation Nissan Navara pickup.

However, increased competition from the used vehicle market and weak domestic demand – which is further compounded by constrained household finances (even with low-interest rates) and high unemployment are major concerns for the automotive industry in the country. Yet, with aforementioned trends and developments it is expected that the market studied will experience growth during the forecast period.

Competitive Landscape
The Africa Automotive Market is dominated by manufacturers such as Volkswagen AG, Toyota Motor Corporation, Groupe Renault (including Dacia Sales), Daimler AG, Ford Motor Company, Hyundai Motor Company, and Isuzu Motors, among others.

Manufacturers are focusing on strategies to improve their business across the region. For instance:
- In June 2020, Nissan Africa, Middle East and India (AMI) presented a comprehensive four-year strategy for the region under the company’s Global Transformation Plan. The plan aligns with the global direction of rationalization, prioritization and focus to bring core models and technologies to a region that accounts for around 10% of the world automotive market.

Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ 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.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Ahmad helps you find the right report:
Testimonials

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
Ikea

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
Ingredion

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

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

Automotive Drive Shaft Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • $ 4250
  • March 2021
  • 96 pages

The automotive driveshaft market is valued at USD 29.15 billion in 2020 and is expected to reach USD 39.67 billion in 2026 and is anticipated to register a CAGR of about 4.93% during the forecast period ...

  • World
  • North America
  • Automotive
  • Motor Vehicle
  • Industry analysis
  • Car Sales
  • Vehicles In Operation

ref:plp2021

Reportlinker.com © Copyright 2021. All rights reserved.

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

Make sure you don’t miss any news and follow us on