While it is still relatively small, Africa’s automotive market is growing, supported by rising incomes, improving urban infrastructure and the ability of Asian manufacturers to supply cost-effective vehicles, says a recent Standard Bank report authored by its analysts Simon

Freemantle and Jeremy Stevens.

Although the majority of Africa’s new vehicle imports still come from markets such as Germany, Japan and the US, it is Indian vehicle manufacturers that have made the biggest strides in recent years.
Among Africa’s traditional and BRICS trading partners, no country has grown its vehicle exports to Africa faster over the past five years than India. “Since 2008, Indian global vehicle sales have expanded by an impressive 100% – though exports directed to Africa have exceeded this rate, swelling by 160%,” notes the report.
A decade ago India was Africa’s 12th largest source of vehicle imports; by 2012 it had moved to sixth position, ahead of France and the UK.
Indian companies such as Tata Motors and Mahindra & Mahindra have grown their presence in Africa from their bases in South Africa. Tata has become one of the continent’s fastest growing passenger vehicle manufacturers and it also claims to be the third largest player in South Africa’s commercial vehicles market.
Mahindra’s growth has largely been centred on pick-up trucks.
Maruti Suzuki, India’s largest vehicle manufacturer by volume, is also looking to grow its exports to Africa. The continent already absorbs 30% of the company’s car exports.