Market Trends of Africa Electric Vehicle Industry
Passenger Car holds Highest Share in the Market
Passenger cars have gained immense popularity among drivers over the past few years due to features such as stylish design, compact size, and economic value. In numerous countries, passenger cars are the most common mode of transportation. The improving lifestyles, increasing power purchase parity disposable income, raising brand awareness, and improving the economy are leading to customer preference changes across the globe, resulting in high sales of passenger cars.
Moreover, with the increase in demand, electric car sales have been growing exponentially due to falling costs, improving technology and government support, which also contribute to passenger car growth.
In addition, a rise in the demand for sports utility Vehicles (SUVs) creates profitable opportunities for the market players and acts as a major driving factor for the passenger car market growth across the globe.
Considering the scenario, companies are working on new product launches, expanding their production capacity, and making investments in technological advances. For instance,
In November 2023, the South African unit of US auto giant Ford said on Wednesday it would invest 5.2 billion rand (USD 281 million) to produce a hybrid vehicle in the country, as it urged the government to move fast on an electric vehicle policy.
In October 2023, a South African car company announced that it would launch a new sedan in 2024 that will be available as an electric (EV).
Thus, all of the above contribute to market growth.
South Africa Holds the Highest Share
South Africa holds the highest share. Due to rising foreign direct investment and trade, the South African automotive industry's growth strategy has been centered on becoming strongly integrated into the global automotive environment.
The South African Automotive Masterplan (SAAM) 2021-2035 aims to generate 1% of worldwide vehicle manufacturing, or 1.4 million vehicles per year, in South Africa by 2035, significantly improving the country's standing and global vehicle production ranking.
Moreover, With the Vision 2030 initiative, the tourism sector in Saudi Arabia is experiencing a major transformation. The government has taken several initiatives to accelerate the achievement of the National Tourism Strategy and Vision 2030 targets of attracting millions of visitors per year, increasing the tourism sectors. Contributing to the demand for electric vehicles.
Manufacturers like Mercedes, BMW, and Mitsubishi have announced their intention to launch new or next-generation model electric vehicles in South Africa. For instance,
In August 2023, Mahindra Unveiled Thar.e. The Electric SUV in South Africa is to be launched in 2024.
Thus, all of the above is contributing to the growth.
