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Bakkie, truck sales to 'almost double' in Africa

2015-10-19 11:24

LEADING WAY IN BAKKIE SALES: South Africa is ranked as the single biggest bakkie and truck market on the continent, according to IHS Automotive analysis. Image: Quickpic

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Dashcam footage reveals the moment a bakkie loses control and crashes into a car dealer... damaging 11 vehicles in the process.

London – A new IHS Automotive analysis of future automotive demand in Africa suggests significant growth opportunities on the continent that the industry considers the “final automotive frontier.”

With one of the world´s fastest-growing middle classes, Africa is showing pronounced promise for the global automotive industry.

Demand for bakkies, trucks

Demand for new light vehicles Gross Vehicle Weight (GVW) of up to six tons has consistently reached more than 1.6-million units since 2012 and is forecast to grow to almost 2.7-million units sold annually by 2027, IHS says. For medium/heavy trucks and buses, volume is forecast to almost double between 2012 and 2027.

These key findings are derived from two new forecasts now available from IHS, a leading source of critical information and insight to the global automotive industry.  

Numerous factors are driving this growth.  While economic development is stemming from agricultural exports and mining of natural resources, investment in infrastructure and foreign direct investment, regional integration is resulting in evolving trade relationships.

SA leading the way

Key automotive-specific factors are fueling this growth as well – including the fact that several African governments led by South Africa and followed by countries in North Africa are developing automotive industry development plans in an attempt to spur employment and economic expansion.

Finally, the majority of African countries are looking to restrict or ban used vehicle imports of a certain age that fail to pass basic safety and environmental standards tests This development is expected to result in significant opportunity for auto sales in the region.

South Africa, Algeria continue to lead for light vehicles; Nigeria and Angola to show strong momentum.

Walt Madeira, senior analyst, light vehicle sales forecast at IHS Automotive, said: “From a light vehicle perspective, just a couple of countries in Africa are expected to see double-digit annual growth by 2027.

“While volumes continue to be small in most countries, Nigeria is a notable exception with a double-digit growth rate and volume forecast to about 260 000 units in 2027.”

So far, South Africa is ranked as the single biggest market on the continent, according to IHS Automotive analysis. That continues to be the case.

In terms of current market size, South Africa leads, with Algeria close behind, both with more than a half million vehicles sold annually by 2027.


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He said: “However, we expect South Africa's share of the market in Africa to gradually decrease from almost 40% in 2011 to 32% in 2027, as other countries including Nigeria and Angola are showing more pronounced growth.”

Medium/heavy truck forecast shows national similarities; Kenya joins top three markets

For medium/heavy trucks and buses, there is a slightly different picture in terms of market growth, according to IHS Automotive analysis, with Kenya joining the leadership ranks by volume of new vehicles expected to be sold.

Andrej Divis, global director of commercial vehicle forecasting at IHS Automotive, said: "Kenya is expected to show the most pronounced growth among African countries, quadrupling in size between 2012 and 2027.

"With that, Kenya will round out the top three markets in terms of annual volume, joining Algeria and South Africa."

The new IHS Automotive forecasts for Africa seek to provide insight and guidance, inform key business decisions and investment, and offer a level of forward-looking intelligence on growth potential on key African markets that has been unavailable up to now.

IHS Automotive anticipates updates to the light vehicle forecast will be available on a semi-annual basis going forward. The forecast for medium- and heavy commercial vehicles will be updated once per year.


Read more on:    south africa  |  auto industry  |  new models  |  trucks  |  bakkies

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