‘Immense potential’ for aftermarket suppliers of two African countries as car and spare parts imports ‘soar’; A report by the German consulting company Africon indicates high demand from the USA, Europe and the UAE – the host of Automechanika Dubai (www.AutomechanikaDubai.com) 2022

Download the document: https://bit.ly/3AmaO3M

A new technical book produced by Africon, a German consulting firm that supports companies around the world in expanding their business in Africa, has outlined the main points related to the automotive markets in Ghana and Côte d’Ivoire.

The data includes details of an increase in the number of imported cars, as well as the growth of the aftermarket in the two countries, making the pair increasingly important in the African automotive aftermarket.

The paper notes that while Ghana and Côte d’Ivoire are smaller markets than African heavyweights such as Egypt, Nigeria and South Africa, they have huge potential.

Total car imports to both countries have risen sharply over the past six years, with the value of light cars in Côte d’Ivoire more than doubling and heavy cars nearly doubling since 2016.

Growth was slightly slower in Ghana, but the numbers remain impressive, averaging 11 percent and 10 percent per year for light and heavy vehicles, respectively. For both countries, the majority of total shipments came from the US, UAE and Europe.

Similarly, in Côte d’Ivoire, despite the economic impact of the COVID-19 pandemic, the growth of the country’s new passenger car market has been relatively strong in recent years, with volume increasing from 7,500 in 2012 to a relatively constant over 10,000 units in the last few years. In total, there are about 800,000 vehicles on the country’s roads (excluding trailers, two- and three-wheelers), while Ghana has a population of about 1.2 million.

“Spare parts markets are growing equally for both countries,” the official document says. “While Ghana’s spare parts market is roughly double that of its French-speaking neighbour, Côte d’Ivoire is fast catching up with an annual increase in imported parts of almost 20 per cent between 2015 and 2021. In Ghana, growth is at “only” 10 percent per annum over the same period.”

Africon believes that as the size of the market grows, these two countries are likely to be the focus of parts manufacturers, while the localization of distribution infrastructure is likely to increase. As it stands, both Ghana and Côte d’Ivoire have a very similar distribution structure, with global parts manufacturers supplying through international trading firms, often based in the UAE or the EU.

E-commerce still plays a fairly limited role in both countries, the paper said. Foreign online platforms are sometimes used to import spare parts, especially due to greater trust in foreign sources. For domestic resale, the vast majority of buyers prefer to “look and feel” the products before ordering. In addition, the logistical challenges of building robust e-commerce systems have yet to be resolved. However, many stakeholders believe in future solutions to these challenges and are increasingly keen to explore opportunities in the digital space in Africa.

“While only a very few global parts manufacturers have their own personnel and structures in the region, they should and will be getting closer to their customers in this regard,” the paper continues. “The importance of e-commerce parts sales and other digital automotive services (repair and maintenance, insurance, ride-hailing services, etc.) may well increase to significantly increase convenience for local drivers and vehicle owners. To gain a foothold in these promising future markets, local and global companies should take advantage of the early movers.”

With offices in Côte d’Ivoire, Ethiopia, Ghana, Kenya, Nigeria, South Africa and Tanzania, Africon will be participating in the annual Automechanika Dubai exhibition from November 22 to 24 at the Dubai World Trade Center in the UAE.

Despite the challenges of COVID-19, last year’s event brought together 20,574 visitors from 129 countries, 578 exhibitors from 47 countries and 12 official country pavilions to reconnect and engage in serious business conversations, sign new deals, explore new partnerships and stay up to date on the latest market trends.

The show’s organizer, Messe Frankfurt Middle East, expects more than 750 exhibitors this year, a 30 percent increase compared to the same period last year.

Distributed by APO Group on behalf of Automechanika Dubai.

Media contact:
Garrett Wright
Tel. +971 4 3894 573
[email protected]

Press information and images:

Automechanika Dubai on social media:
Facebook: https://bit.ly/3Pq1AYT
Twitter: https://bit.ly/3bUA0Ff
YouTube: https://bit.ly/2pXLpsw
Instagram: https://bit.ly/3QIgvyn
LinkedIn: https://bit.ly/3zWUNjF

More information about Messe Frankfurt:
Messe Frankfurt Group is one of the world’s leading organizers of fairs, congresses and events with its own exhibition grounds. With 2,200 employees at its headquarters in Frankfurt am Main and 28 subsidiaries, it organizes events around the world. As in the previous year, annual sales in 2021 were significantly lower due to the COVID-19 pandemic: approximately €154 million, compared to group sales of €736 million in 2019 before the pandemic. We effectively serve the business interests of our clients within the framework of our fairs and events, venues and services.

Sustainable business practices are central to our corporate strategy and strike a healthy balance between environmental and economic interests, social responsibility and diversity. Another strength of Messe Frankfurt is its powerful and cohesive global sales network, which covers around 180 countries in all regions of the world. Our wide range of services – both on-site and online – ensures that clients worldwide enjoy consistently high quality and flexibility in planning, organizing and delivering events. We use our digital expertise to develop new business models. A wide range of services includes rental of exhibition spaces, construction and marketing of fairs, staffing and catering. The company, headquartered in Frankfurt am Main, is owned by the city of Frankfurt (60 percent) and the state of Hesse (40 percent). For more information, please visit our website: www.MesseFrankfurt.com

About Messe Frankfurt Middle East:
Messe Frankfurt Middle East’s portfolio of 16 shows includes Automechanika Dubai, Automechanika Riyadh, Beautyworld Middle East, Beautyworld Saudi Arabia, Hardware + Tools Middle East, Hypermotion Dubai, Intersec, Intersec Saudi Arabia, Gifts & Lifestyle Middle East, Light Middle East, Materials Handling Middle East, Materials Handling Saudi Arabia, Cleaning Technology Week Middle East, Paperworld Middle East, Prolight + Sound Middle East and SPS Automation Middle East. In the 2021/22 event season, Messe Frankfurt Middle East exhibited 2,394 exhibitors from 53 countries and attracted 83,124 visitors from 116 countries. For more information, visit our website at www.MesseFrankfurtME.com

This press release was published by APO. The African Business editorial team does not control the content, and the content has not been reviewed or endorsed by our editorial teams, proofreaders or fact-checkers. The issuer is solely responsible for the content of this message.

Source by [author_name]

Previous articleMaharaj, haka scoop the top prizes
Next articleA nationwide initiative to address the green skills gap in SA