Passenger Cars - Africa

Africa

Revenue in the Passenger Cars market is projected to reach US$24.7bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.67%, resulting in a projected market volume of US$33.2bn by 2028.
The market's largest segment is SUVs with a projected market volume of US$9.5bn in 2024.
Passenger Cars market unit sales are expected to reach 1,146.00k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$28.93k in 2024.
With a vehicle unit sales share of 17.7% in 2024, Other is expected to have one of the highest market share in the selected region.
The value market share of the make Other in the selected region is expected to stand at 20.8% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Africa has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the African Passenger Cars market have shifted towards more fuel-efficient and environmentally friendly vehicles.

This is largely influenced by global trends towards sustainability and the increasing awareness of the impact of carbon emissions on the environment. Customers are also prioritizing safety features and advanced technology in their vehicle choices, reflecting a growing demand for connectivity and convenience. Trends in the market show a significant increase in the demand for SUVs and crossover vehicles.

This can be attributed to the growing middle class in Africa, who are seeking vehicles that offer both comfort and versatility. SUVs and crossovers provide ample space for passengers and cargo, making them ideal for both urban and rural environments. Additionally, these vehicles often come equipped with advanced safety features, appealing to customers who prioritize safety.

Local special circumstances in Africa play a role in shaping the Passenger Cars market. The continent is vast and diverse, with varying road conditions and infrastructure. As a result, customers in different regions have different needs and preferences.

For example, customers in urban areas may prioritize compact vehicles that are easy to maneuver in congested city streets, while customers in rural areas may prefer vehicles with higher ground clearance and off-road capabilities. Underlying macroeconomic factors also contribute to the development of the Passenger Cars market in Africa. Economic growth and rising disposable incomes have led to an increase in vehicle ownership.

As more people are able to afford cars, the demand for Passenger Cars has risen. Additionally, favorable government policies and incentives, such as tax breaks and subsidies for electric vehicles, have encouraged the adoption of greener and more sustainable vehicles. In conclusion, the Passenger Cars market in Africa is evolving to meet the changing needs and preferences of customers.

The demand for fuel-efficient and environmentally friendly vehicles, as well as SUVs and crossovers, is driving the market growth. Local special circumstances and underlying macroeconomic factors also play a role in shaping the market. As the African economy continues to grow and customers become more conscious of sustainability and safety, the Passenger Cars market is expected to further expand in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).