The passenger vehicle and commercial vehicle segments of South Africa’s car market are divided by nation (South Africa, Morocco, Algeria, Egypt, Nigeria, Ghana, Kenya, and the Rest of Africa). In terms of value, the study provides market size and forecasts for all of the aforementioned segments.
African Automotive Industry
The African automotive industry is currently estimated to be worth USD 32.46 billion; this will increase over the following five years to an anticipated amount of almost USD 44.08 billion, showing a growth increase of 6.5%.
The COVID-19 pandemic had a particularly negative impact on the automotive industry in Africa. Only in the middle of 2023 is it anticipated that the market would reach the demand rates of the pre-COVID period from client industries. Until then, it is anticipated that the rate of production facilities will drop with a plain output plan that may change according to the demand.
Due to favorable government initiatives and rising displacement in the region's major nations, which are boosting infrastructural projects, the market is anticipated to expand quickly over the medium term, which will create a positive future. Many larger nations, including Kenya and Nigeria, are concentrating on strategies to expand domestic vehicle manufacture.
Kenya’s State Automotive Policy
According to Kenya’s recent state automotive policy, majority of the automobile export goods to East Africa are expected to rise from 6% in 2019 to 18% in 2022.
In order to do this, the Kenya government developed incentive programs for locally built cars with the goal of displacing imported cars with locally built cars. Such initiatives might strengthen Kenya’s automobile industry.
However, the region’s automotive industry has some serious challenges, including heightened second-hand car market and underdeveloped local; they are also exacerbated by limited the low lending rates).
Over the next six years, it is anticipated that the government’s initiative to encourage foreign investment in the automobile sector will increase demand.
Final Thoughts
The automotive sector includes a whole range of businesses and institutions engaged in the planning, creation, production, promotion, and sale of automobiles. The automotive market research in Africa examines the region’s competitive environment and projects the expansion of the continent’s car industry.
The analysis also covers market trends, growth, advancements, difficulties, chances, rules of the government, growth projections, and future forecast.
The passenger and commercial vehicle segments of the African automobile market are divided by nation.
