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Africa Used Car Market Size (2024 - 2029)

The Africa used car market is experiencing significant growth, with its market size expanding due to the substantial share of imported used vehicle transactions, particularly in countries like Nigeria, Libya, and Kenya. This market expansion is further supported by the increasing presence of organized participants, which has helped to build trust in the used car industry across developing nations. However, the market faces challenges from regulatory measures aimed at reducing carbon emissions and protecting local manufacturing, which have led to restrictions on the importation of used vehicles. Despite these challenges, the market continues to grow, driven by the high proportion of used vehicles in the overall fleet.

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Market Size of Africa Used Car Industry

Africa Used Car Market Summary
Study Period 2024 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
CAGR 8.65 %
Market Concentration Medium

Major Players

Africa Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Used Car Market Analysis

The Africa used car market is valued at USD 40.45 billion and is expected to surpass the market value of USD 61.24 billion by the end of the forecast period by registering a CAGR of 8.65%.

  • Africa constitutes the measurable share and accounts for approximately 40% of imported used vehicle transitions. This trend is predominantly propelled by African countries such as Nigeria, Libya, and Kenya. Used vehicles make up a significant portion, accounting for 85% of the overall vehicle fleet in Africa. In response to the concerns about elevated carbon emissions originating from pre-owned cars and to safeguard the local vehicle manufacturing sector, various regional regulatory entities have enforced restrictions on the importation of used vehicles.
  • The market for used cars in Africa is continuously expanding. The introduction of organized participants into the market in developing countries has addressed the trust deficit that has plagued the used car industry in those countries for decades.

Africa Used Car Industry Segmentation

A used car, a pre-owned vehicle, or a second-hand car is a vehicle that has previously had one or more retail owners. On the other hand, a certified pre-owned (CPO) vehicle is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned. The term ''used'' refers to the fact that the car has been driven, and it may have accumulated some wear and tear over its lifetime.

The scope of Africa's used car market is segmented by vehicle type, vendor, and country Type. By vehicle type, the market is segmented into hatchbacks, sedans, sport utility vehicles, and multi-purpose vehicles. By vendor, the market is segmented into organized and unorganized. By geography, the market is segmented into South Africa, Morocco, Algeria, Egypt, Nigeria, Ghana, Kenya, and the Rest of Africa.

For each segment market sizing and forecast have been done on the basis of USD.

By Vehicle Type
Hatchbacks
Sedan
Sports Utility Vehicles and Multi-Purpose Vehicles
By Vendor
Organized
Unorganized
By Country
South Africa
Morocco
Algeria
Egypt
Nigeria
Ghana
Kenya
Rest of Africa
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Africa Used Car Market Size Summary

The African used car market is experiencing significant growth, driven by increasing consumer purchasing power and a rise in disposable incomes. This market is characterized by a substantial portion of the vehicle fleet being comprised of used cars, with a notable share of imported used vehicles. Countries like Nigeria, Libya, and Kenya are key players in this trend. However, regulatory measures aimed at reducing carbon emissions and protecting local manufacturing have imposed restrictions on the importation of used vehicles. The market is becoming more organized, with new entrants addressing long-standing trust issues, thereby enhancing the overall consumer experience and streamlining the purchasing process.

Investment in the African used car market is on the rise, with companies like Peach Cars and Planet42 expanding their operations and enhancing their platforms to attract more buyers. Morocco and Egypt are identified as growth enablers, with Morocco's developed automotive sector playing a pivotal role in the region's economic activity. The market is moderately fragmented, with key players engaging in competitive strategies to capture market share. Strategic acquisitions and partnerships, such as Autocheck's stake in Egypt's AutoTager and Cars45's collaboration with Suzuki, are indicative of the dynamic nature of the market. These developments are expected to further stimulate demand for used cars, as consumers increasingly turn to pre-owned vehicles due to affordability and accessibility challenges.

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Africa Used Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 High Cost Associated With the New Cars and Affordability Concerns Drive the Market

      2. 1.1.2 Others

    2. 1.2 Market Restraints

      1. 1.2.1 Stringent Governmental Regulations and Import Taxes Restrict the Market Growth

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in USD)

    1. 2.1 By Vehicle Type

      1. 2.1.1 Hatchbacks

      2. 2.1.2 Sedan

      3. 2.1.3 Sports Utility Vehicles and Multi-Purpose Vehicles

    2. 2.2 By Vendor

      1. 2.2.1 Organized

      2. 2.2.2 Unorganized

    3. 2.3 By Country

      1. 2.3.1 South Africa

      2. 2.3.2 Morocco

      3. 2.3.3 Algeria

      4. 2.3.4 Egypt

      5. 2.3.5 Nigeria

      6. 2.3.6 Ghana

      7. 2.3.7 Kenya

      8. 2.3.8 Rest of Africa

Africa Used Car Market Size FAQs

The Africa Used Car Market is projected to register a CAGR of 8.65% during the forecast period (2024-2029)

Al-Futtaim Group, Abdul Latif Jameel Motors, AutoTrader South Africa, Sylndr and Cars45 are the major companies operating in the Africa Used Car Market.

Africa Used Car Market Report Snapshots

Africa Used Car Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)