How Big is Africa’s Car Market? (African Executive)
The African Executive has a lengthy article (Africa’s Automotive Market: Barriers to Growth) about the African car market with data released by the International Organization of Motor Vehicle Manufacturers showing that new passenger car sales on the continent (excluding used vehicles) was only 1.2 million units out of the 62.6 million units sold globally in 2013. And if there are 100 new car sales in Africa, then about sixty of those sales would stem from South Africa, thirty-five in North Africa (including Morocco, Egypt, Algeria, Tunisia and Libya) and between five and ten sales would be generated from different countries within “middle Africa.”
Nicholas de Canha, CEO of Imperial Fleet Management, was quoted as saying:
“With that in mind, ‘middle Africa’ has a massive import-of-used-car market – where used car imports are banned in South and North Africa. In fact, I would even suggest that the used car market in ‘middle Africa’ is about ten times the size of the new car market in the region – where 90-95% of these used car imports are made up of passenger vehicles. That is part of the reason that there are so few new passenger vehicle sales in Middle Africa (typically less than 20% of total market). In South Africa, and other more developed automotive markets however, passenger vehicles make up around 65% of new sales and LDVs 35%.”
He also added that GDP per capita needs to grow until it’s about $5000-6000 per person before we’ll see robust automotive markets across the continent plus he talked in some detail about the potential for the Nigerian car market.
To read the whole article, Africa’s Automotive Market: Barriers to Growth, go to the website of the African Executive.
- Africa Rising: The Hopeful Continent (Wellington Management)
- ETFs Add to African Access (S&P Global)
- Opportunities on the African Continent: A Balancing Act (Franklin Templeton)
- How Africa’s Free-Trade Zone Will Provide an Economic Boom (WEF)
- YPO CEO Survey: Africa CEO Confidence at 5-year Low (YPO)
- Africa’s Consumer Market Potential: Trends, Drivers, Opportunities and Strategies (Brookings Institution)
- Africa’s Oil & Gas Scene After the Boom: What Lies Ahead (Oxford Energy Forum)
- South Africa Stocks “Expensive Within Emerging Markets” (Moneyweb.co.za)
- Coronation Africa Frontiers Fund Manager: Stick With MNC Subsidiaries (Citywire)
- General Motors to Leave South Africa (Moneyweb)