Used vehicle imports continue to dominate consumer automotive demand

Affordability remains the defining factor in African automotive markets, with used-vehicle imports continuing to dominate demand in countries such as Kenya, Nigeria, and South Africa throughout February-March. In Kenya, used imports account for most registrations, while Nigeria’s reliance on imported vehicles reinforces similar dynamics. This is compounded by the limited availability of affordable credit, with formal vehicle financing penetration remaining low across most markets, constraining the shift towards new-vehicle ownership. This entrenched structure limits the addressable market for new vehicles from OEMs such as Toyota and Volkswagen, despite ongoing regulatory efforts to tighten emissions and age restrictions. The persistence of used vehicle demand highlights structural income constraints and limited access to consumer financing. For OEMs and investors, this necessitates a dual-market approach that balances new-vehicle offerings with aftermarket services or certified used programmes, while navigating evolving regulatory frameworks.

admin.adams

Website