Ethiopia Used Car Market Size (2024 - 2029)

Ethiopia Used Car Market Analysis

The Ethiopia Used Car Market size is estimated at USD 471 million in 2024, and is expected to reach USD 549.89 million by 2029, growing at a CAGR of greater than 2.5% during the forecast period (2024-2029).

Over the medium term, factors such as the quality of used cars, the large number of expatriates, and demand for new and luxury cars are expected to stand as primary driving factors of the market. However, price discrepancies, lack of standardization, and others are expected to act as major restraints to the growth of the market.

The introduction of organized participants into the market has addressed the trust deficit that has plagued the used car industry in those countries for decades. Additional factors driving market expansion include rising disposable income levels, rising consumer demand for luxury automobiles, shorter car ownership durations, expanding import-export, and a growing inclination among two-wheeler owners to upgrade to tiny and compact cars.

The rapid development of internet-based ride-hailing services has contributed to transportation in cities and, at the same time, has significantly impacted existing travel modes in cities. Ride-hailing services significantly use used cars for their services, which in turn is anticipated to witness major growth in the market.

Additionally, the better value-added services provided by online used car trading platforms over the conventional used car selling methods have significantly attracted buyers toward the used car market over new vehicles. These value-added services provide peace of mind to the customers and aid in the growth of the car use market in the country.

However, the market is still in the growth phase and is projected to witness prominence during the forecast period.

Ethiopia Used Car Industry Segmentation

A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. A certified pre-owned (CPO) vehicle, on the other hand, is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned.

The Ethiopia used car market is segmented into vehicle type, vendor type, and fuel type. Based on the vehicle type, the market is segmented into hatchbacks, sedans, sports utility vehicles, and multi-purpose vehicles. Based on the vendor type, the market is segmented into organized and unorganized. Based on the fuel type, the market is segmented into gasoline, diesel, electric, and alternative fuel vehicles.

For each segment, the market sizing and forecast have been done based on the value (USD).