What's Happening?
A new wave of disruption is emerging in Africa's used car market due to the introduction of more affordable brand new cars from Chinese manufacturers. Traditional automakers have historically treated African
markets as dominated by non-consumers, with most new models arriving years after their global launch. However, the influx of competitively priced new cars from Chinese brands like GWM, Chery, and MG is changing consumer behavior. This shift is prompting used car dealers to adjust their pricing strategies to maintain inventory turnover. The trend is particularly evident in South Africa, where Chinese OEMs are ramping up operations, offering ICE, HEV, and PHEV vehicles at attractive prices.
Why It's Important?
The entry of affordable new cars from China into African markets could significantly alter the automotive landscape, potentially reducing the dominance of used vehicle imports. This shift may stimulate local economies by reviving the motor vehicle assembly industry and creating jobs. It also presents an opportunity for increased adoption of electric vehicles (EVs) as Chinese manufacturers expand their offerings. The disruption could lead to improved access to modern, efficient vehicles for consumers, enhancing mobility and economic development across the continent.
