Market Size of Africa Used Car Industry
| Study Period | 2024 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| CAGR | 8.65 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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 |
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.
Africa Used Car Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 High Cost Associated With the New Cars and Affordability Concerns Drive the Market
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1.1.2 Others
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1.2 Market Restraints
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1.2.1 Stringent Governmental Regulations and Import Taxes Restrict the Market Growth
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size in USD)
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2.1 By Vehicle Type
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2.1.1 Hatchbacks
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2.1.2 Sedan
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2.1.3 Sports Utility Vehicles and Multi-Purpose Vehicles
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2.2 By Vendor
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2.2.1 Organized
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2.2.2 Unorganized
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2.3 By Country
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2.3.1 South Africa
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2.3.2 Morocco
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2.3.3 Algeria
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2.3.4 Egypt
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2.3.5 Nigeria
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2.3.6 Ghana
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2.3.7 Kenya
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2.3.8 Rest of Africa
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Africa Used Car Market Size FAQs
What is the current Africa Used Car Market size?
The Africa Used Car Market is projected to register a CAGR of 8.65% during the forecast period (2024-2029)
Who are the key players in Africa Used Car Market?
Al-Futtaim Group, Abdul Latif Jameel Motors, AutoTrader South Africa, Sylndr and Cars45 are the major companies operating in the Africa Used Car Market.
