Market Trends of Ethiopia Used Car Industry
Online Infrastructure witnessing major growth
- The used car market is getting more organized because used car retailers are using digitalization to make market offerings attractive. Facilities such as an enormous number of photos and videos on the online platform and easy online instant finance service are drawing more customers into buying used cars.
- Tech-savvy customers in the age group of 25-40 years are demanding features such as end-to-end transactions, doorstep delivery, a digitalized recommendation based on the driving behavior and lifestyle of the customer, and digitalized test drives. Players in the market are providing flawless and smooth access to car specifications, performance reports, and inventory information to customers to assist them in making informed decisions.
- Blockchain technology has already brought about a wide variety of developments in various sectors, and the car financing sector seems to be next. OEMs and online platforms have brought a new level of clarity to the highly unorganized activity of buying and selling used cars. Online sales are becoming popular among the young generation as they offer a smooth journey and offer the best price to buy. Online stores offer a wide range of product categories and allow customers to purchase goods.
- Many multi-brand and independent dealerships are expected to develop their online presence to participate in the online used vehicle market. Some dealerships are investing in their websites and Instagram pages in addition to advertising used car inventory on internet marketplaces.
- Companies will continue to focus on keeping themselves ahead based on value-added services provided to prospective clients, reducing the service cost and introducing premium and well-maintained vehicle models and features into their fleet to capture a significant share of the market.
Understand The Key Trends Shaping This Market
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Hatchback and Sedan Used Car Sales to Witness Surge During Forecast Period
- The hatchback and sedan cars segment holds a significant market share in terms of revenue in the current year and is projected to grow during the forecast period. The growing consumer trend toward diving flexibility is likely to increase the demand for used hatchback and sedan cars across the country.
- Ethiopia recently became the third country in Sub-Saharan Africa to sign a memorandum of understanding (MoU) with Volkswagen. Through this MoU, the company plans to expand the vehicle assembly facilities and expand the vehicle dealership platform in the country, which in turn is likely to witness major growth for the market during the forecast period.
- Hatchbacks are popular for a variety of reasons, including lower taxation than sedans while providing the same performance and comfort. Furthermore, because there are so few new models that qualify for these tax breaks, the price of used hatchbacks remains unaffected.
- When it comes to secondhand hatchbacks, these vehicles are an appealing alternative to the LCGC and LMPV kinds often utilized by consumers. One may get hatchbacks in decent shape that are 5 to 10 years old on the market.
- Additionally, the majority of the vehicle types plying on the road are MPV, but due to the shift from joint families to nuclear families in cities, the hatchbacks are slowly gaining pace, which is anticipated to drive the hatchback segment in the used car market.
- The purchasing power of middle-class consumers has also increased over the last two decades, enabling them to own sedans. Moreover, the sedan segment witnesses high demand from the used luxury car segment.
- Although old cars are often less expensive, sedans are more cost-effective. Ownership expenses for SUVs and trucks can be high, but they are lower for sedans. We understand that finding economical, high-quality care can be difficult. As a result, we have a large range of used sedans that are both economical and dependable.
- Sedans offer improved comfort features such as rear AC vents and rear armrests as a result of the additional interior space. In addition to providing additional legroom, the seats also give better support, making your passengers more comfortable. A majority of these features are now standard across all sedans and certain hatchbacks on the Ethiopian market.
