Market Size of Africa Automotive Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 20.5 Billion |
| Market Size (2029) | USD 26.30 Billion |
| CAGR (2024 - 2029) | 5.10 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Africa Automotive Market Overview
The Africa Automotive Market size is estimated at USD 20.5 billion in 2024, and is expected to reach USD 26.30 billion by 2029, growing at a CAGR of 5.10% during the forecast period (2024-2029).
Over the medium term, the African automotive market is expected to grow rapidly due to supportive government incentives and increasing urbanization in the major countries in the region, which are encouraging infrastructural developments, thus creating a positive outlook for the market. Several larger countries, such as South Africa, Nigeria, and Kenya, also focus on developing domestic automotive production plans. For instance,
South Africa's policy for electrification of transport under South Africa's Just Energy Transition (JET) plan will likely produce its first electric vehicle (EV) in 2026. The JET plan estimates that the transport sector would need an investment of ZAR 128.1 billion (USD 6.84 billion) from 2023 to 2027 to contribute to South Africa's decarbonization commitments.
The South African electric mobility market offers new opportunities for foreign companies and investors to enter and expand operations.
For example, in June 2023, Germany's BM opened a new tab and will build its X3 model in South Africa from 2024, investing ZAR 4.2 billion (USD 25.09 million) to electrify its plant in Rosslyn.
Moreover, Africa's vital raw materials for modern vehicles require new technologies to reach net zero. They include copper, cobalt, bauxite, and lithium. Considering the overall economic and industrial factors, the market is expected to grow in the coming years.
