Ethiopia Used Car Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 471 Million |
| Market Size (2029) | USD 549.89 Million |
| CAGR (2024 - 2029) | > 2.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Ethiopia Used Car Market Analysis
The Ethiopia Used Car Market size is estimated at USD 471 million in 2024, and is expected to reach USD 549.89 million by 2029, growing at a CAGR of greater than 2.5% during the forecast period (2024-2029).
Over the medium term, factors such as the quality of used cars, the large number of expatriates, and demand for new and luxury cars are expected to stand as primary driving factors of the market. However, price discrepancies, lack of standardization, and others are expected to act as major restraints to the growth of the market.
The introduction of organized participants into the market has addressed the trust deficit that has plagued the used car industry in those countries for decades. Additional factors driving market expansion include rising disposable income levels, rising consumer demand for luxury automobiles, shorter car ownership durations, expanding import-export, and a growing inclination among two-wheeler owners to upgrade to tiny and compact cars.
The rapid development of internet-based ride-hailing services has contributed to transportation in cities and, at the same time, has significantly impacted existing travel modes in cities. Ride-hailing services significantly use used cars for their services, which in turn is anticipated to witness major growth in the market.
Additionally, the better value-added services provided by online used car trading platforms over the conventional used car selling methods have significantly attracted buyers toward the used car market over new vehicles. These value-added services provide peace of mind to the customers and aid in the growth of the car use market in the country.
However, the market is still in the growth phase and is projected to witness prominence during the forecast period.
Ethiopia Used Car Market Trends
Online Infrastructure witnessing major growth
- The used car market is getting more organized because used car retailers are using digitalization to make market offerings attractive. Facilities such as an enormous number of photos and videos on the online platform and easy online instant finance service are drawing more customers into buying used cars.
- Tech-savvy customers in the age group of 25-40 years are demanding features such as end-to-end transactions, doorstep delivery, a digitalized recommendation based on the driving behavior and lifestyle of the customer, and digitalized test drives. Players in the market are providing flawless and smooth access to car specifications, performance reports, and inventory information to customers to assist them in making informed decisions.
- Blockchain technology has already brought about a wide variety of developments in various sectors, and the car financing sector seems to be next. OEMs and online platforms have brought a new level of clarity to the highly unorganized activity of buying and selling used cars. Online sales are becoming popular among the young generation as they offer a smooth journey and offer the best price to buy. Online stores offer a wide range of product categories and allow customers to purchase goods.
- Many multi-brand and independent dealerships are expected to develop their online presence to participate in the online used vehicle market. Some dealerships are investing in their websites and Instagram pages in addition to advertising used car inventory on internet marketplaces.
- Companies will continue to focus on keeping themselves ahead based on value-added services provided to prospective clients, reducing the service cost and introducing premium and well-maintained vehicle models and features into their fleet to capture a significant share of the market.
Hatchback and Sedan Used Car Sales to Witness Surge During Forecast Period
- The hatchback and sedan cars segment holds a significant market share in terms of revenue in the current year and is projected to grow during the forecast period. The growing consumer trend toward diving flexibility is likely to increase the demand for used hatchback and sedan cars across the country.
- Ethiopia recently became the third country in Sub-Saharan Africa to sign a memorandum of understanding (MoU) with Volkswagen. Through this MoU, the company plans to expand the vehicle assembly facilities and expand the vehicle dealership platform in the country, which in turn is likely to witness major growth for the market during the forecast period.
- Hatchbacks are popular for a variety of reasons, including lower taxation than sedans while providing the same performance and comfort. Furthermore, because there are so few new models that qualify for these tax breaks, the price of used hatchbacks remains unaffected.
- When it comes to secondhand hatchbacks, these vehicles are an appealing alternative to the LCGC and LMPV kinds often utilized by consumers. One may get hatchbacks in decent shape that are 5 to 10 years old on the market.
- Additionally, the majority of the vehicle types plying on the road are MPV, but due to the shift from joint families to nuclear families in cities, the hatchbacks are slowly gaining pace, which is anticipated to drive the hatchback segment in the used car market.
- The purchasing power of middle-class consumers has also increased over the last two decades, enabling them to own sedans. Moreover, the sedan segment witnesses high demand from the used luxury car segment.
- Although old cars are often less expensive, sedans are more cost-effective. Ownership expenses for SUVs and trucks can be high, but they are lower for sedans. We understand that finding economical, high-quality care can be difficult. As a result, we have a large range of used sedans that are both economical and dependable.
- Sedans offer improved comfort features such as rear AC vents and rear armrests as a result of the additional interior space. In addition to providing additional legroom, the seats also give better support, making your passengers more comfortable. A majority of these features are now standard across all sedans and certain hatchbacks on the Ethiopian market.
Ethiopia Used Car Industry Overview
Ethiopia's Used Car Market is dominated by several key players, including Megebeya.com, Cars 2 Africa, Proxima Auto Car Dealer, Nyala Motors, Ultimate Motors, and others. Rising adoption of various growth strategies, such as expansion, partnerships, etc., to improve their presence and revenue shares in the market. For instance,
In July 2023, the Ethiopian government introduced used car import duties and taxes in the country. The government imposed a high tax on imported vehicles.
In November 2022, Green Tech Ethiopia expanded its dealership network in Ethiopia. Green Tech is one of the second to officially enter the electric cars market in the country.
Ethiopia Used Car Market Leaders
Megebeya.com
Cars 2 Africa
Proxima Auto Car Dealer.
Nyala Motors
Ultimate Motors
*Disclaimer: Major Players sorted in no particular order
Ethiopia Used Car Market News
- July 2023: Volkswagen AG announced the expansion of its operations in Ethiopia. The company is looking for a financial partner that provides loan and finance options to buy new and used vehicles in the country.
- May 2023: The Ministry of Finance of Ethiopia announced the adoption of new investment incentives for the duty-free import of vehicles.
Ethiopia Used Car Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increased Demand For Used Cars Compared To New Cars
4.2 Market Restraints
4.2.1 Trust And Transparency In Used Car Remained A Key Challenge For Consumers
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 Vehicle Type
5.1.1 Hatchback
5.1.2 Sedan
5.1.3 Sport Utility Vehicles (SUVs)
5.1.4 Multi-Purpose Vehicles (MUVs)
5.2 Vendor Type
5.2.1 Organized
5.2.2 Unorganized
5.3 Fuel Type
5.3.1 Gasoline
5.3.2 Diesel
5.3.3 Electric
5.3.4 Alternative Fuel Vehicles
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Megebeya.com
6.2.2 Cars 2 Africa
6.2.3 Proxima Auto Car Dealer.
6.2.4 Nyala Motors
6.2.5 Ultimate Motor
6.2.6 Marathon Motors Engineering
6.2.7 ALEM INTERNATIONAL PLC
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Ethiopia Used Car Industry Segmentation
A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. A certified pre-owned (CPO) vehicle, on the other hand, is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned.
The Ethiopia used car market is segmented into vehicle type, vendor type, and fuel type. Based on the vehicle type, the market is segmented into hatchbacks, sedans, sports utility vehicles, and multi-purpose vehicles. Based on the vendor type, the market is segmented into organized and unorganized. Based on the fuel type, the market is segmented into gasoline, diesel, electric, and alternative fuel vehicles.
For each segment, the market sizing and forecast have been done based on the value (USD).
| Vehicle Type | |
| Hatchback | |
| Sedan | |
| Sport Utility Vehicles (SUVs) | |
| Multi-Purpose Vehicles (MUVs) |
| Vendor Type | |
| Organized | |
| Unorganized |
| Fuel Type | |
| Gasoline | |
| Diesel | |
| Electric | |
| Alternative Fuel Vehicles |
Ethiopia Used Car Market Research Faqs
How big is the Ethiopia Used Car Market?
The Ethiopia Used Car Market size is expected to reach USD 471 million in 2024 and grow at a CAGR of greater than 2.5% to reach USD 549.89 million by 2029.
What is the current Ethiopia Used Car Market size?
In 2024, the Ethiopia Used Car Market size is expected to reach USD 471 million.
Who are the key players in Ethiopia Used Car Market?
Megebeya.com, Cars 2 Africa, Proxima Auto Car Dealer., Nyala Motors and Ultimate Motors are the major companies operating in the Ethiopia Used Car Market.
What years does this Ethiopia Used Car Market cover, and what was the market size in 2023?
In 2023, the Ethiopia Used Car Market size was estimated at USD 459.23 million. The report covers the Ethiopia Used Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ethiopia Used Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Ethiopia Used Car Industry Report
Statistics for the 2024 Ethiopia Used Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ethiopia Used Car analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
