Africa continues to position itself as a vehicle OEM and vehicle component assembly platform for the global automobile industry. Despite a low motorization rate on the continent of only 44 vehicles per 1 000 inhabitants, the sector has significant potential. The global average in terms of motorization rate is 180 vehicles per 1 000 inhabitants, and Africa’s rate remains lower than other developing regions such as Latin America (176) and Developing Asia, Oceania and the Middle East (79). By 2015, approximately 1.55 million new vehicles were sold or registered across Africa. Based on recent sales trends, some sources estimate that Africa’s passenger vehicle sales could reach up to 10 million units per annum within the next 15 years.
Roughly 85% of new cars sold in Africa are purchased in South Africa and seventeen of the major global automotive and truck manufacturers have production facilities in South Africa. This places South Africa at the top of the list. Egypt is the second largest automotive market in Africa and produces over 70,000 automobiles per year. Nigeria has established a ten-year duty exemption and tax holiday for any OEM that sets up a local assembly plant in Nigeria.
The African continent has a low motorisation rate of only 44 vehicles per 1 000 inhabitants.
Africa’s automotive imports are worth about US$48 billion; while exports are worth only US$11 billion.
By 2015, approximately 1.55 million new vehicles were sold or registered across Africa.
Estimates predict that Africa’s passenger vehicle sales could reach up to 10 million units per annum within the next 15 years.
South Africa, Egypt, Algeria, and Morocco – all countries with established and rapidly developing automotive industries – together accounted for more than 80% of total new vehicle sales in 2015.