Africa Automotive Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Africa Automotive Market Overview

The Africa Automotive Market size is estimated at USD 21.55 billion in 2025, and is expected to reach USD 27.63 billion by 2030, at a CAGR of 5.1% during the forecast period (2025-2030).

Africa's automotive industry is undergoing a significant transformation driven by the continent's abundant natural resources and strategic positioning in the global supply chain. The region holds vital raw materials essential for modern automotive manufacturing, including copper, cobalt, bauxite, and lithium, positioning Africa as a crucial player in the global automotive ecosystem. This natural resource advantage is complemented by increasing urbanization and infrastructure development across major African nations. The continent's strategic location and improving port infrastructure are facilitating better trade connections, as evidenced by the Tanger Med Port's impressive handling of 478,589 new motor vehicles in 2022, demonstrating the region's growing capability in automotive logistics and distribution.

The transition towards electric vehicle mobility is gaining momentum across the African automotive sector, with several countries implementing supportive policies and infrastructure development initiatives. South Africa is leading this transformation through its Just Energy Transition (JET) plan, which aims to produce its first electric vehicle by 2026. The plan's ambitious scope is reflected in its substantial investment requirement of ZAR 128.1 billion (USD 6.84 billion) from 2023 to 2027 for the transport sector's decarbonization. This commitment to sustainable mobility is attracting significant foreign investment, as demonstrated by BMW's announcement in June 2023 to invest ZAR 4.2 billion in electrifying its Rosslyn plant for X3 model production from 2024.

The region's manufacturing capabilities are expanding, particularly in key automotive hubs like Morocco and South Africa. Morocco's automotive sector has demonstrated remarkable export capabilities, with Renault's Melloussa and SOMACA plants producing 295,393 vehicles for export, while Stellantis's Kénitra facility contributed an additional 124,112 export vehicles in 2022. These achievements highlight the region's growing competitiveness in global vehicle production and its potential to serve both domestic and international markets. The development of specialized automotive ports and terminals, such as Egypt's first exclusive RORO terminal at East Port Said, further strengthens the continent's position in the global automotive supply chain.

The African automotive market is witnessing increased collaboration between international manufacturers and local stakeholders to develop domestic production capabilities. This is evidenced by the establishment of new manufacturing facilities and the expansion of existing ones across various countries. The industry is seeing a shift from traditional import dependence to local value creation, supported by government policies promoting domestic manufacturing and assembly operations. These developments are accompanied by investments in supporting infrastructure, including specialized automotive terminals and logistics facilities, creating a more robust and integrated automotive ecosystem across the continent.

Africa Automotive Market Trends

Growing Vehicle Production

The automotive industry has witnessed significant growth in vehicle production across Africa, particularly driven by expanding automotive manufacturing capabilities and infrastructure development. Morocco has emerged as a leading automotive hub, with automobile production contributing approximately 23% to the country's GDP in 2021, demonstrating the sector's substantial economic impact. The rapid expansion of automotive industries and manufacturing facilities across the region has led to increased vehicle production volumes, supported by advanced automotive technology and streamlined production processes. Several countries are witnessing major developments in their automotive manufacturing capabilities, with new assembly plants and production facilities being established to meet the growing demand.

The focus on electric vehicle production has further accelerated manufacturing growth in the region. In June 2023, BYD, a global leader in new energy vehicle production, launched its all-electric model BYD ATTO 3 in South Africa, marking a significant step in the region's electric vehicle manufacturing capabilities. Additionally, Mercedes-Benz South Africa's initiative to implement 127 electric vehicle charging stations nationwide, with an investment of ZAR 40 million in November 2023, demonstrates the growing emphasis on sustainable vehicle production and infrastructure development. The South African Automotive Masterplan (SAAM) for 2021-2035 aims to increase the country's global vehicle production by 1% annually by 2035, while targeting a localization rate of 60%, highlighting the region's commitment to expanding its manufacturing capabilities.

Growing Investment from Leading Automotive Manufacturers Across the Region

Major automotive manufacturers are making substantial investments across Africa, recognizing the region's potential as a manufacturing hub. In March 2023, Stellantis signed a significant Memorandum of Understanding with the Industrial Development Corporation (IDC) and the Department of Trade, Industry, and Competition (DTIC) to develop a manufacturing facility in South Africa, demonstrating continued confidence in the region's automotive sector. These investments are accompanied by the establishment of new production facilities, technology transfer initiatives, and the creation of employment opportunities, contributing to the overall growth of the automotive industry in Africa.

The region has also witnessed increased investment in specialized manufacturing capabilities and model diversification. Hyundai SA's announcement in December 2023 regarding the introduction of updated i20 and Tucson models in 2024, along with the all-new Santa Fe SUV, reflects the growing commitment of automotive manufacturers to the African market. The establishment of strong business links between South African operations and international stakeholders has enhanced the potential for mutually beneficial trade relationships, leading to increased investment in manufacturing capabilities. These investments are supported by government initiatives and incentives, creating a favorable environment for automotive manufacturers to expand their presence in the region through new manufacturing facilities and increased production capacities.

Segment Analysis: By Vehicle Ownership

Used Vehicles Segment in Africa Automotive Market

The used automotive vehicles segment continues to dominate the Africa motor vehicle market, commanding approximately 68% of the total market share in 2024. This significant market position is primarily driven by the affordability factor, as used vehicles provide a more economical option for the growing middle class across African nations. The segment's strength is particularly evident in countries like Kenya, where more than 96% of vehicles are imported as used vehicles. The robust used car market is supported by well-established import channels from major automotive markets like Japan, Europe, and the United States, along with a growing network of organized used car dealers and online marketplaces across the continent. The segment's dominance is further reinforced by the expanding middle class and increasing levels of disposable income, coupled with consumers' preference for cost-effective transportation solutions.

New Vehicles Segment in Africa Automotive Market

The new vehicles segment is emerging as the fastest-growing segment in the Africa automobile market, demonstrating strong growth potential through 2024-2029. This growth is primarily driven by increasing investments from leading automotive manufacturers across the region, with companies like Volkswagen, Toyota, and Stellantis expanding their manufacturing presence. The segment's expansion is supported by various government initiatives promoting local vehicle production, including tax incentives and the development of automotive industrial zones. Morocco and South Africa are leading this transformation, with significant investments in manufacturing facilities and the establishment of automotive clusters. The growth is further accelerated by improving economic conditions, rising consumer purchasing power, and the increasing availability of vehicle financing options in key markets.

Africa Automotive Market Geography Segment Analysis

Africa Automotive Market in South Africa

South Africa continues to dominate the African automotive landscape, commanding approximately 40% of the continent's total automotive market in 2024. The country's robust automotive sector is supported by well-established manufacturing facilities and a strong presence of global automobile brands. South Africa's automotive industry benefits from advanced infrastructure, including the Silverton assembly plant and the Rosslyn manufacturing facility, which serve as key production hubs for major international manufacturers. The country's strategic position as an export base to other African nations and global markets has attracted significant investments from leading automotive manufacturers. The government's Automotive Production Development Program (APDP) has been instrumental in fostering industry growth by providing various incentives and support mechanisms. The presence of sophisticated dealer networks, financing options, and after-sales services further strengthens South Africa's position as the continent's automotive powerhouse.

Africa Automotive Market in Democratic Republic of Congo

The Democratic Republic of Congo (DRC) is emerging as one of Africa's most promising automotive markets, with a projected growth rate of approximately 8% from 2024 to 2029. The country's automotive sector is undergoing a significant transformation driven by increasing urbanization and rising consumer purchasing power. The government's focus on developing infrastructure and implementing supportive policies has created a conducive environment for automotive market expansion. The DRC's strategic location in Central Africa positions it as a potential hub for motor vehicle distribution to neighboring countries. The market is witnessing increased interest from both new and used vehicle segments, with a growing preference for durable vehicles suited to the country's diverse terrain. Local assembly initiatives and partnerships with international manufacturers are beginning to take shape, indicating the market's evolution towards a more structured automotive ecosystem. The country's rich mineral resources, particularly those essential for electric vehicle batteries, could play a crucial role in attracting future investments in the automotive sector.

Africa Automotive Market in Egypt

Egypt's automotive market continues to evolve as a key player in the African automotive sector, supported by its strategic location and large consumer base. The country has implemented significant reforms in its automotive policy framework, including the establishment of a new regulatory body for the local vehicle industry and a dedicated fund for environmentally friendly vehicles. Egypt's focus on developing its local manufacturing capabilities has attracted substantial investments from international automotive manufacturers. The market is witnessing a notable shift towards electric and hybrid passenger vehicles, supported by government incentives and the development of charging infrastructure. The country's automotive ecosystem benefits from its well-established ports and logistics infrastructure, particularly the Suez Canal Economic Zone. Local assembly operations and manufacturing facilities are expanding, creating employment opportunities and contributing to the country's industrial development. The market's growth is further supported by increasing consumer financing options and a growing middle class.

Africa Automotive Market in Morocco

Morocco has established itself as a significant automotive manufacturing hub in Africa, leveraging its proximity to European markets and strategic trade agreements. The country's automotive sector benefits from advanced industrial platforms, including the automotive cities in Tangier and Kenitra, which operate under free zone status. Morocco's success in attracting major global automotive manufacturers has transformed it into a key export base for vehicles and components. The country's focus on developing local supplier networks and investing in workforce training has created a comprehensive automotive ecosystem. Sustainable mobility initiatives and the integration of new technologies in vehicle production have positioned Morocco at the forefront of automotive innovation in Africa. The market benefits from strong government support through various incentives and infrastructure development programs. The presence of established research and development facilities continues to enhance the country's automotive capabilities.

Africa Automotive Market in Other Countries

The automotive markets in other African countries, including Nigeria, Ghana, Kenya, Angola, Tanzania, Tunisia, Ethiopia, Libya, and others, present diverse opportunities and challenges. These markets are characterized by varying levels of development, regulatory frameworks, and consumer preferences. Countries like Ghana and Kenya are emerging as potential automotive manufacturing hubs, implementing policies to attract investments and develop local assembly capabilities. The used vehicle segment remains significant in many of these markets, particularly in West and East African nations. Several countries are implementing reforms to modernize their automotive sectors, including the introduction of age restrictions on imported vehicles and incentives for local assembly operations. Regional economic communities and trade agreements are playing an increasingly important role in shaping these markets' development. The growing focus on sustainable mobility and electric vehicles is gradually influencing market dynamics across these countries, though at different paces and scales.