Africa Automotive Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The report covers Sub-Saharan Africa Automotive Market By Country and is segmented by Body Style Type (Hatchback, Sedan, Sports Utility Vehicles, and Others), By Fuel Type (Gasoline, Diesel, and Other Alternative Fuels), By Vehicle Type (Passenger Cars and Commercial Vehicles) and By Geography (South Africa, Kenya, Nigeria, Ethiopia, Ghana, and Other Countries). The report offers market size and forecasts in terms of Value (USD billion) for all the mentioned segments.

Africa Automotive Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Sub Saharan Africa Automotive Market Size

Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 21.59 Billion
Market Size (2030) USD 27.75 Billion
CAGR (2025 - 2030) 5.15 %
Market Concentration Medium

Major Players

Sub Saharan Africa Automotive Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Sub Saharan Africa Automotive Market Analysis

The Sub Saharan Africa Automotive Market size is estimated at USD 21.59 billion in 2025, and is expected to reach USD 27.75 billion by 2030, at a CAGR of 5.15% during the forecast period (2025-2030).

The Sub-Saharan African automotive landscape is experiencing a significant transformation as countries work to reduce their dependence on imported vehicles. Nigeria, one of the region's largest markets, currently spends approximately NGN 2.88 trillion (USD 8 billion) annually on importing between 300,000 to 400,000 vehicles. To combat this, several countries have implemented stringent import regulations and higher duties, with Nigeria imposing a 70% import duty on foreign vehicles to encourage local automotive manufacturing. These policy changes have led to a surge in domestic manufacturing activities, with countries like Ghana and Kenya emerging as potential regional automotive manufacturing hubs.


The region is witnessing substantial investments in manufacturing infrastructure and automation technologies. According to industry data, Nigeria alone has 31 licensed vehicle producers with a combined installed capacity of 205,000 vehicles per year. Local manufacturers are increasingly adopting automated production processes to improve efficiency and reduce costs. A notable example is Innoson Vehicles Manufacturing Limited's new automated plant in Nnewi, which has successfully reduced the cost of its 15-17-seater Hummer bus from NGN 16 million to NGN 9 million, demonstrating the potential for local automotive manufacturing to offer competitive pricing.


The Sub-Saharan automotive sector is experiencing a rapid evolution in electric vehicle mobility, particularly in the two-wheeler segment. A vibrant startup ecosystem has emerged, with over 20 electric vehicle startups receiving cumulative funding exceeding $25 million. Countries like Rwanda have introduced progressive policies, including tax exemptions for electric vehicle sales, to accelerate EV adoption. This transformation is accompanied by increasing investments in charging infrastructure and automotive battery technology, with several international manufacturers partnering with local firms to develop market-specific electric vehicle solutions.


Regional integration and trade agreements are reshaping the automotive manufacturing landscape, with the African Continental Free Trade Area (AfCFTA) playing a pivotal role in facilitating cross-border trade and investment. Countries are strategically positioning themselves as regional manufacturing and assembly hubs, with South Africa, Morocco, and Ghana leading this transformation. Major international manufacturers are establishing production facilities across multiple countries to capitalize on regional market opportunities and optimize their supply chains. This trend is supported by increasing investments in infrastructure development and the establishment of specialized automotive industrial parks and export processing zones.

Segment Analysis: By Body Style Type

SUV and MPV Segment in Sub-Saharan Africa Automotive Market

The Sports Utility Vehicles (SUV) and Multi-Purpose Vehicles (MPV) segment dominates the Sub-Saharan Africa automotive market, commanding approximately 34% market share in 2024. This segment's leadership position is driven by increasing consumer preferences for versatile vehicles that can handle diverse road conditions across the region. The segment is also experiencing the fastest growth trajectory, with manufacturers introducing new models with advanced features and technology. Major automotive companies are focusing on launching both premium and affordable SUV models to cater to different consumer segments. The rising popularity of SUVs among urban consumers, due to their high comfort levels and superior driving experience in challenging road conditions, continues to drive demand. Additionally, the growing middle-class population and increasing urbanization across Sub-Saharan African countries are contributing to the segment's robust performance.

Market Analysis of Sub Saharan Africa Automotive Market: Chart for By Body Style Type

Light Commercial Vehicles Segment in Sub-Saharan Africa Automotive Market

The light commercial vehicles (LCV) segment represents a significant portion of the market, driven by the expanding logistics and e-commerce sectors across Sub-Saharan Africa. The growth in this segment is supported by rapid urbanization, which has created new retail and e-commerce platforms requiring efficient logistics solutions. Several commercial vehicle manufacturers are expanding their manufacturing facilities across the African region, introducing new models with improved fuel efficiency and enhanced features. The segment is witnessing increased demand from small and medium enterprises, particularly in countries like South Africa, Nigeria, and Kenya. The development of infrastructure projects and growth in the construction sector are also contributing factors to the segment's expansion.

Remaining Segments in Body Style Type

The other segments in the market include Medium and Heavy Commercial Vehicles, Hatchbacks, and Sedans, each serving distinct market needs. The Medium and Heavy Commercial vehicle segment plays a crucial role in industrial and logistics operations, particularly in the mining and construction sectors. The Hatchback segment maintains its position as an affordable and practical option for urban consumers, with manufacturers focusing on fuel-efficient models with modern features. The Sedan segment, while smaller, continues to serve the premium vehicle market, with luxury car manufacturers introducing new models with advanced technology and comfort features. These segments collectively contribute to the market's diversity and cater to specific consumer preferences across different price points and usage requirements.

Segment Analysis: By Vehicle Type

Passenger Cars Segment in Sub-Saharan Africa Automotive Market

The passenger vehicle segment dominates the Sub-Saharan Africa automotive market, commanding approximately 56% market share in 2024, while also exhibiting the strongest growth trajectory with a projected growth rate of nearly 6% during 2024-2029. This segment's leadership position is primarily driven by increasing disposable income levels and growing consumer purchasing power across the region. Several major automotive manufacturers are actively expanding their presence in key markets like South Africa, Nigeria, and Kenya through new manufacturing facilities and assembly plants. The rising adoption of electric and hybrid vehicles, particularly in South Africa, is creating new opportunities within this segment. Government initiatives promoting vehicle manufacturing and the gradual transition towards electrification are further strengthening the passenger vehicle market. Additionally, the introduction of new vehicle models by leading manufacturers, coupled with improving automotive infrastructure and financing options, is making passenger vehicles more accessible to a broader consumer base across Sub-Saharan Africa.

Commercial Vehicles Segment in Sub-Saharan Africa Automotive Market

The commercial vehicle segment maintains a significant presence in the Sub-Saharan Africa automotive market, driven by expanding logistics operations, e-commerce growth, and infrastructure development projects across the region. This segment encompasses both light commercial vehicles and heavy-duty trucks, serving diverse transportation needs from urban delivery services to long-haul freight transport. The segment benefits from increasing investments in manufacturing facilities, with several global automotive manufacturers establishing production units in countries like South Africa and Ghana. The growing focus on fleet modernization, particularly in the transportation and construction sectors, is driving demand for new commercial vehicles. Additionally, government initiatives supporting local manufacturing and the development of transportation infrastructure are creating favorable conditions for segment growth. The rise in cross-border trade within the African Continental Free Trade Area (AfCFTA) is also boosting demand for commercial vehicles, particularly in major economic corridors.

Segment Analysis: By Fuel Type

Gasoline Segment in Sub-Saharan Africa Automotive Market

The gasoline segment continues to dominate the Sub-Saharan Africa automotive market, commanding approximately 67% market share in 2024. This dominance is primarily attributed to the widespread availability of gasoline infrastructure across the region and consumer preference for gasoline-powered vehicles due to their lower initial cost compared to alternative fuel vehicles. The rising demand for lightweight vehicles across the region has enhanced the demand for gasoline-powered vehicles. Several automotive manufacturers are focusing on introducing new gasoline-powered models with improved fuel efficiency and reduced emissions to meet the growing consumer demand and comply with environmental regulations. The segment's strong performance is also supported by the established supply chain network and the familiarity of consumers with gasoline vehicles, making them a preferred choice for both personal and commercial use.

Hybrid and Electric Vehicles Segment in Sub-Saharan Africa Automotive Market

The hybrid and electric vehicles segment is experiencing remarkable growth in the Sub-Saharan Africa automotive market, projected to grow at approximately 49% during 2024-2029. This exceptional growth is driven by increasing government initiatives promoting electric mobility and rising environmental consciousness among consumers. Several automotive manufacturers are introducing new hybrid and electric models, supported by investments in charging infrastructure development across major cities. For instance, Audi South Africa has significantly expanded its electric vehicle charging network across the country, demonstrating the industry's commitment to sustainable transportation. The segment's growth is further accelerated by technological advancements reducing battery costs, improving vehicle range, and enhancing the overall performance of electric vehicles, making them increasingly attractive to consumers in the region.

Remaining Segments in Fuel Type

The diesel segment continues to play a significant role in the Sub-Saharan Africa automotive market, particularly in the commercial vehicle sector. Despite facing challenges from stricter emission regulations and the gradual shift towards alternative fuels, diesel vehicles maintain their importance in specific applications where high torque and fuel efficiency are crucial. The segment's performance is influenced by factors such as fuel price differentials, infrastructure availability, and the specific needs of commercial fleet operators. While the market share of diesel vehicles may be gradually declining, they remain essential for heavy-duty applications and in regions where alternative fuel infrastructure is still developing.

Sub Saharan Africa Automotive Market Geography Segment Analysis

Automotive Market in South Africa

South Africa continues to dominate the Sub-Saharan African automotive market, commanding approximately 87% of the regional market share in 2024. The country's automotive industry benefits from a well-established manufacturing infrastructure, with the presence of all major European, American, and Japanese vehicle manufacturers. The industry contributes significantly to the country's GDP, with a robust network of manufacturing, distribution, servicing, and maintenance facilities. South Africa's position as the leading automotive hub is strengthened by its advanced production capabilities and export potential, serving as a gateway to other African markets. The country's automotive sector is experiencing a significant transformation with an increasing focus on electric vehicle production and sustainable manufacturing practices. Major automotive manufacturers are continuously expanding their operations and introducing new vehicle models, particularly in the electric and hybrid segments, demonstrating their long-term commitment to the South African market.

Automotive Market in Nigeria

Nigeria's automotive market is projected to experience robust growth at approximately 7% CAGR from 2024 to 2029, positioning it as one of the most dynamic markets in the region. The country's automotive sector is undergoing a significant transformation, driven by increasing investments in local assembly operations and the government's automotive development initiatives. Nigeria's market potential is further enhanced by its large population and growing middle class, creating substantial opportunities for both domestic and international automotive players. The country has witnessed the establishment of several assembly plants by international manufacturers, indicating growing confidence in its market potential. The government's focus on developing the local automotive industry through policies and incentives has created a more favorable environment for investments. The market is also seeing increased interest in electric vehicle manufacturing, with several international partnerships being formed to promote EV production and adoption in the country.

Automotive Market in Kenya

Kenya's automotive market stands out as one of the most established in the East African Community region, with three major vehicle assembly plants focusing on pick-ups and heavy commercial vehicles. The country's strategic location and improving infrastructure make it an attractive hub for automotive manufacturing and distribution in East Africa. Kenya's automotive sector is characterized by a strong presence of established motor vehicle dealers and a growing focus on electric mobility solutions. The government's support through various initiatives and policies has created a conducive environment for automotive sector growth. The country is witnessing increased investments in electric vehicle infrastructure and assembly operations, with several international manufacturers establishing partnerships with local entities. Kenya's automotive market is also benefiting from growing urbanization and increasing consumer purchasing power, driving demand for both personal and commercial vehicles.

Automotive Market in Other Countries

The automotive markets in other Sub-Saharan African countries, including Tanzania, Angola, Zambia, Ethiopia, and Ghana, are showing promising development trajectories. These markets are characterized by varying levels of maturity and different growth drivers, with some focusing on assembly operations while others primarily serve as import markets. Countries like Ghana and Ethiopia are making significant strides in developing their automobile manufacturing capabilities through strategic partnerships with international manufacturers. The region is witnessing increased interest from global automotive players looking to establish or expand their presence. Several countries are implementing supportive policies to attract investments and develop their automotive sectors. The growing middle class, urbanization, and infrastructure development across these markets are creating new opportunities for automotive industry growth. These emerging markets are also showing increasing interest in sustainable mobility solutions, with several countries developing frameworks to support electric vehicle adoption.

Sub Saharan Africa Automotive Industry Overview

Top Companies in Sub-Saharan Africa Automotive Market

The Sub-Saharan African automotive market is characterized by significant product innovation initiatives from major manufacturers, particularly in electric and hybrid vehicle technologies. Companies are demonstrating operational agility through flexible automotive manufacturing approaches and localized assembly operations across multiple countries. Strategic partnerships between global OEMs and local manufacturers have become increasingly common, enabling better market penetration and technology transfer. Market leaders are expanding their presence through new manufacturing facilities and assembly plants, particularly in South Africa, Nigeria, Ghana, and Kenya. The focus on after-sales automotive service networks and dealer development programs has intensified, while companies are also investing in digital transformation and autonomous driving technologies to maintain a competitive advantage.

Global Giants Dominate Regional Auto Market

The Sub-Saharan African automobile market exhibits a high level of consolidation with global automotive manufacturers holding dominant positions, particularly in key markets like South Africa. Japanese manufacturers, led by Toyota Motor Corporation, have established strong manufacturing and distribution networks, while European manufacturers like Volkswagen AG maintain a significant market presence through local assembly operations and strategic partnerships. The market structure is characterized by a mix of fully-owned manufacturing facilities and joint ventures with local partners, particularly in emerging markets like Ghana and Ethiopia.


The competitive landscape shows active merger and acquisition activities, primarily focused on strengthening local assembly capabilities and distribution networks. Global players are increasingly partnering with local companies to establish assembly operations and expand their dealer networks, while also investing in electric vehicle infrastructure. The market also sees participation from Chinese manufacturers who are gradually expanding their presence through competitive pricing strategies and technology partnerships, though their market share remains relatively smaller compared to established players.

Innovation and Localization Drive Market Success

Success in the Sub-Saharan African automotive market increasingly depends on manufacturers' ability to adapt to local market conditions while maintaining global quality standards. Companies need to focus on developing market-specific vehicle models that meet local preferences and affordability levels, while also investing in local automotive manufacturing capabilities to reduce import dependencies. The establishment of strong dealer networks and after-sales service infrastructure has become crucial for market success, along with the development of financing solutions tailored to local market conditions.


Future market leadership will require companies to balance introducing advanced technologies with maintaining affordability. Manufacturers need to navigate complex regulatory environments across different countries while managing supply chain challenges and currency fluctuations. The ability to develop strong relationships with government bodies and local partners will be crucial for long-term success. Companies must also address the growing demand for sustainable mobility solutions while competing with the robust used car market that continues to influence consumer choices in the region. Additionally, the integration of automotive parts and automotive component innovations will be essential to meet the diverse needs of the market.

Sub Saharan Africa Automotive Market Leaders

  1. Nissan Motor Co., Ltd.

  2. Toyota South Africa Motors (Pty) Ltd

  3. Volkswagen South Africa

  4. Hyundai Automotive South Africa

  5. Suzuki Auto South Africa

  6. *Disclaimer: Major Players sorted in no particular order
Market Concentration
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Sub Saharan Africa Automotive Market News

  • In May 2022, The 2022 Toyota Starlet arrived in South Africa, with a starting price of SAR 226,200. The premium hatchback, known as the Toyota Glanza in the U.S., is manufactured in India and exported under the Starlet brand. It was recently relaunched in India with significant changes.

Africa Automotive 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
  • 4.2 Market Restraints
  • 4.3 Industry Attractiveness - Porter's Five Force 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

  • 5.1 Body Style Type
    • 5.1.1 Hatchback
    • 5.1.2 Sedan
    • 5.1.3 Sports Utility Vehicles
    • 5.1.4 Others (Mini-vans, MPV, etc.)
  • 5.2 By Vehicle Type
    • 5.2.1 Passenger Cars
    • 5.2.2 Commercial Vehicles
  • 5.3 By Fuel Type
    • 5.3.1 Gasoline
    • 5.3.2 Diesel
    • 5.3.3 Other Alternative Fuels
  • 5.4 Country
    • 5.4.1 South Africa
    • 5.4.2 Nigeria
    • 5.4.3 Kenya
    • 5.4.4 Ethiopia
    • 5.4.5 Ghana
    • 5.4.6 Other Countries (Tanzania, Angola, Zambia, etc. )

6. COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Company Profiles*
    • 6.2.1 Toyota Motor Corporation
    • 6.2.2 Volkswagen AG
    • 6.2.3 Hyundai Motor Company
    • 6.2.4 Groupe Renault
    • 6.2.5 Nissan Motor Co., Ltd.
    • 6.2.6 Isuzu Motors Ltd
    • 6.2.7 Ford Motor Company
    • 6.2.8 Honda Motor Company, Ltd.
    • 6.2.9 Subaru Corporation
    • 6.2.10 Suzuki Motor Corporation

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Sub Saharan Africa Automotive Industry Segmentation

The Sub-Saharan automotive market outlook examines the region's growing demand for passenger cars, commercial vehicles, and two-wheelers, OEM investments to establish a presence in countries, developments in the electric vehicle market, and market shares of both OEMs and OES. Regulations on importing new and used vehicles, taxes levied by the government for new & used vehicles, government initiatives to boost the automotive industry, and the future of the Sub-Saharan Africa Automotive industry.

The Sub-Saharan Africa Automotive market is segmented by Body Style Type, Fuel Type, Vehicle Type, and Geography.

By Body Style Type, the market is segmented into Hatchback, Sedan, Sport Utility Vehicles, and Others. BY Fuel Type, the market is segmented into Gasoline, Diesel, and Other Alternative Fuels. By Vehicle Type, the market is segmented into Passenger Cars, Commercial Vehicles, and Two-wheelers. By Geography, the market is segmented into South Africa, Kenya, Nigeria, Ethiopia, Ghana, and Other Countries. For each segment, the market size, and forecast have been done on basis of value (USD million).

Body Style Type Hatchback
Sedan
Sports Utility Vehicles
Others (Mini-vans, MPV, etc.)
By Vehicle Type Passenger Cars
Commercial Vehicles
By Fuel Type Gasoline
Diesel
Other Alternative Fuels
Country South Africa
Nigeria
Kenya
Ethiopia
Ghana
Other Countries (Tanzania, Angola, Zambia, etc. )
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Sub Saharan Africa Automotive Market Research FAQs

How big is the Sub Saharan Africa Automotive Market?

The Sub Saharan Africa Automotive Market size is expected to reach USD 21.59 billion in 2025 and grow at a CAGR of 5.15% to reach USD 27.75 billion by 2030.

What is the current Sub Saharan Africa Automotive Market size?

In 2025, the Sub Saharan Africa Automotive Market size is expected to reach USD 21.59 billion.

Who are the key players in Sub Saharan Africa Automotive Market?

Nissan Motor Co., Ltd., Toyota South Africa Motors (Pty) Ltd, Volkswagen South Africa, Hyundai Automotive South Africa and Suzuki Auto South Africa are the major companies operating in the Sub Saharan Africa Automotive Market.

What years does this Sub Saharan Africa Automotive Market cover, and what was the market size in 2024?

In 2024, the Sub Saharan Africa Automotive Market size was estimated at USD 20.48 billion. The report covers the Sub Saharan Africa Automotive Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Sub Saharan Africa Automotive Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Sub Saharan Africa Automotive Industry Report

Mordor Intelligence offers comprehensive insights into the automotive industry, focusing on detailed analysis of motor vehicle trends across Sub Saharan Africa. Our extensive research spans the entire spectrum, from automotive manufacturing to automotive retail. It includes crucial segments such as electric vehicle adoption, hybrid vehicle development, and autonomous vehicle technologies. The report provides a thorough analysis of automotive parts, automotive electronics, and automotive semiconductor innovations. It also examines automotive insurance trends and automotive financing solutions. Our expert analysts evaluate both commercial vehicle and passenger vehicle sectors, including light vehicle and heavy vehicle segments.

Stakeholders can access our detailed report PDF for download, featuring in-depth analysis of automotive testing methodologies, automotive diagnostic tools, and emerging automotive sensor technologies. The report examines automotive interior and automotive exterior design trends, automotive component developments, and the growing importance of connected car solutions. Our comprehensive coverage extends to automotive software applications, automotive battery innovations, and automotive leasing services. This provides valuable insights for industry participants, from luxury car manufacturers to used car dealers. The analysis includes a detailed examination of automotive service providers and automotive electronics suppliers, ensuring stakeholders have access to the most current market intelligence.