Showing posts with label Ghana. Show all posts
Showing posts with label Ghana. Show all posts

Friday, 15 March 2024

Africa Automotive: Egypt and Nigeria are rocking

Africa Automotive: Egypt and Nigeria are rocking

If anyone was looking to question the growth of the African auto market and industry; take a deep breath and absorb some of the numbers, recognising this could pose a serious challenge to the industry in South Africa.

Recent data from the Central Agency for Public Mobilization and Statistics (CAPMAS) reveals a notable surge in Egypt's passenger car imports, indicating a burgeoning automotive market. In December 2023, the value of imported passenger cars soared to $214,8-million, showing a significant rise from the previous year's figure of $160,7-million.



Similarly, November 2023 witnessed a substantial growth in car imports, with figures reaching $223,4-million compared to $107,3-million in the corresponding month of 2022. The surge, totalling $116,9-million, underscores a robust demand for passenger vehicles in the Egyptian market.

However, despite these positive developments, the period from January to September 2023 witnessed a decline in total car imports, with the value dropping to around $1,3-billion from $1,5-billion in the same period of 2022. This decline suggests fluctuations in Egypt's automotive trade dynamics.

Shifting focus to Nigeria, the country experienced a remarkable increase in used vehicle imports, signifying a dynamic automotive landscape. The National Bureau of Statistics (NBS) reported a significant surge in the total value of used vehicle imports, soaring from N325,05-billion in 2022 to N1,063-trillion in 2023, marking a staggering 226,46% increase within a year.

Notably, between 2022 and 2023, the value of used vehicle imports in Nigeria jumped by N736-billion, according to the NBS foreign trade report for 2023.



The substantial rise recorded in 2023 can be attributed to a surge in vehicle imports, particularly in the second quarter, amounting to N733,91-billion, which represents about 69% of the total imports for the year. However, fluctuations were observed throughout the year, with varying figures in different quarters.

Despite these impressive figures, challenges persist in Nigeria's automotive sector. While the country has seen increased local production of automobiles, particularly from companies like Innoson and Nord motors, the elevated cost of production limits local demand, with patronage mostly from government and institutions.

Additionally, the importation of used vehicles from the United States, Qatar, and Europe remains a popular choice among Nigerians due to affordability. However, high import duties and currency depreciation pose barriers to accessibility for the average Nigerian.

In response to these challenges, the Nigerian government is considering a ban on the importation of used vehicles manufactured between 2000 and 2007, aiming to stimulate local production and bolster the domestic automotive industry.



Meanwhile, in Ghana, Honda Manufacturing Ghana (HMG) celebrated the commencement of automobile production at its Tema plant, marking a significant milestone in the country's automotive sector. With an initial annual capacity of 500 units, HMG's entry into the market reflects West Africa's growing potential as a hub for automotive manufacturing and trade.

Similarly, South Africa's automotive industry remains a crucial contributor to the national economy, accounting for nearly 5% of the GDP. The government's recent adoption of electric vehicle (EV) technology production signals a strategic shift towards sustainable mobility solutions.

Measures outlined in the annual Budget Speech, including investment allowances for new EV investments, underscore a commitment to fostering innovation and competitiveness in the automotive sector.

While these initiatives present promising opportunities for the automotive industry across Africa, collaboration between governments, industry stakeholders, and investors will be essential to address challenges and realize the full potential of the continent's burgeoning automotive market.


https://bit.ly/3TC9rYw

Thursday, 8 June 2023

Africa Automotive - Ghana to hold auto summit

With more than 20 models assembled in Ghana, the West African country is rapidly becoming a major automotive roleplayer on the continent and will hold its maiden Automotive Summit on  June 27, at the Accra International Conference Centre (AICC) Grand Arena.

The theme for the summit; ‘Creating A New Economic Backbone for Ghana and The Sub-Region,’ will present an opportunity for leading experts and industry professionals in the sector to discuss the latest trends, challenges, and opportunities in the automobile industry. 

“We are delighted to host this maiden summit, which will explore the future of the automobile industry and the technologies and innovations that will shape it. This will provide us with the opportunity as a country to discuss the issues and opportunities impacting businesses and the automobile industry as a whole,” the AAAG President, Jeffrey Oppong Peprah emphasised.


Jeffrey Oppong Peprah

The AAAG membership includes Volkswagen Ghana, Japan Motors, Rana Motors, Kantanka Automobile, Silverstar Ghana and Stallion Group Toyota-Tsusho Company. Associate members are Toyota Ghana and CFAO Motors Ghana.

The event is expected to attract an audience of hundreds of senior-level representatives from across the breadth of the industry, including vehicle manufacturers, component manufacturers, engineers, government, the financial sector, insurance, global organisations, and the media.

The panel discussions will address key areas of focus for the automotive ecosystem including sustainability, competitiveness, standards, the creation of a local used car market, component manufacturing, retail, auto financing, and insurance, amongst others.

Speakers will include Senior executives from vehicle manufacturers, policymakers, and a host of content experts from automotive and aligned industries.

This summit is proudly supported by the Africa Continental Free Trade Area (AfCFTA) Secretariate, Ghana Investment Promotion Centre (GIPC), and the Ministry of Trade and Industry.


https://bit.ly/45WaEhl

Thursday, 25 May 2023

Africa Automotive - Volkswagen supports Africa growth

Africa Automotive - Volkswagen supports Africa growth

Volkswagen is fully supportive of growth in the automotive industry in Africa, having taken over the assembly responsibilities of the plant in Ghana from its licenced importer, Universal Motors Limited.

The Africa Union commemorates it 60th anniversary this year on Africa Day with the slogan ‘Our Africa, Our Future’ and this slogan resonates strongly with Volkswagen as the company continues to grow its presence on the continent.

Ghana is the fourth Volkswagen assembly location in Sub-Saharan Africa after Kenya, Rwanda and South Africa, where Volkswagen has been manufacturing vehicles for more than 72 years.

Volkswagen Group South Africa (VWSA) Chairperson and Managing Director, Martina Biene, is positive about Africa’s growth potential, saying a number of African countries have introduced compelling incentive plans for locally assembled vehicles to attract OEMs such as Volkswagen to invest in the development of the automotive industry on the continent.



From left Volkswagen Ghana Chief Executive Officer, Jeffrey Peprah, Martina Biene, Chairperson and MD of Volkswagen Group South Africa, Andrew Potgieter, VWSA advisor to Ghana, Ulrich Schwabe, VWSA Production Director and Thomas Milz VWSA Sales and Marketing Director at the recent Ghana plant opening.

“We are encouraged by the automotive policy changes which some of the countries have implemented or in the process of implementing. These policies will help us to sell new high-quality vehicles which are backed by a well-established global brand to our African customers,” said Biene.

Biene added Sub-Saharan Africa has become very important for the sustainability of Volkswagen.

Future

“The future of Volkswagen is in Africa. We are therefore accelerating our growth strategy on the continent by playing a pioneering and leading role in the development of the automotive industry.”

Volkswagen already has a presence in 17 countries in Sub-Saharan Africa where it sells passenger and commercial vehicles through licensed importers.

“We will continue to grow the Volkswagen brand in these markets and strengthen our aftersales support to customers. Ongoing training is provided to technical staff at the Volkswagen locations to meet customer requirements and expectations,” Biene added.

Growing

According to the African Development Bank of the world’s 10 fastest growing economies, five are in Africa - Rwanda, Côte d’Ivoire, Benin, Ethiopia and Tanzania.

Biene affirmed Rwanda and Côte d’Ivoire are also two of Volkswagen’s fastest-growing markets. Rwanda, with an economy growing at close to 8%, shows significant potential for increased mobility solutions and electric vehicles due to its relatively young, tech-savvy population and growing middle class.

“Rwanda has been the success story of our growth plans in Sub-Saharan Africa. It is also the innovation hub of our sustainable mobility lighthouse projects on the continent. Our mobility solutions services business, which includes ride-hailing and corporate car sharing, broke even last year. Rwanda was also the first country in Sub-Saharan Africa to launch a Volkswagen electric vehicle with the e-Golfs,” concluded Biene. 


https://bit.ly/3OECKYs