Sub-Saharan Commercial Vehicle Market Overview Released
Reportbuyer.com has published a new market research report: Strategic Outlook of Select Sub-Saharan Commercial Vehicle Market Africa to Offer Level Playing Opportunity for Global Industry Participants. The Sub-Saharan African commercial vehicles study gives a strategic overview of the commercial vehicles market in twelve Sub-Saharan African countries.
Due to the limited availability of raw materials and vehicle components, the commercial vehicles market has experienced years of decline in vehicle production. The emergence of low-cost vehicles from Asian manufacturers has exacerbated this situation, according to the authors. Currently, most commercial vehicles are imported either from Europe or Asia. China, Japan, and South Korea are playing leading roles in exporting low-cost commercial vehicles to Africa. Most African governments have responded by providing tax incentives to encourage the local assembly of commercial vehicles in their countries.
Between 2012 and 2020 the Sub-Saharan African's truck market is anticipated to grow from to units. The overall truck market is expected to achieve high growth due to sustained economic growth. Significant investment in infrastructure projects across the entire Sub-Saharan African region is expected to be the major driver of growth. However, the unavailability of raw materials in local markets and the high costs of producing vehicles locally are expected to continue undermining market development. Currently, there is limited production of local vehicles across the region. Most available vehicles are either low-cost vehicles from Asia or second-hand models from Europe, according to the study. South Africa remains the single largest market of commercial vehicles across the region. Due to the urgent need to resuscitate their automotive sectors, most governments are imposing restrictions on the importation of vehicles older than five years. Light-duty truck sales are expected to continue dominating the market between 2012 and 2020.
Most commercial vehicles are currently imported from Europe and Asian markets. The Sub-Saharan African commercial vehicles market is mostly characterised by light-duty (LD), medium-duty (MD), and heavy-duty (HD) trucks and buses. Since the 1980s, most Sub-Saharan African countries have experienced a steady decline in the number of vehicles assembled locally. This has mainly been due to the limited availability of raw materials and vehicle components. Furthermore, the influx of low-cost vehicles has reduced the price competitiveness of locally assembled vehicles. Hence, most countries currently import commercial vehicles from Europe and Asia.
However, in order to stimulate the local assembly of commercial vehicles, some governments are shifting towards providing tax incentives to local assemblers, according to the study’s findings. These include import duty exemptions on vehicle components that are used for local vehicle production. For more information go to www.reportbuyer.com.