Auto Parts Booms in Africa
>>>
China’s auto exports have grown at a high rate in recent years, reaching a staggering 4.91 million units in 2023, surpassing Japan for the first time to become the world’stopauto exportingcountry. 2024 China’s auto exports will still maintain 20% growth.
China’s auto exports have grown at a high rate in recent years, reaching a staggering 4.91 million units in 2023, surpassing Japan for the first time to become the world’s top auto exporting country. 2024 China’s auto exports will still maintain 20% growth.
In addition to new cars, China has exported a large number of used cars to countries in Africa, Asia and Europe, with Africa accounting for the largest share.
China’s auto parts have gained more and more consumers’ favor by virtue of their rich variety and high cost-effectiveness, etc. At the same time, China’s auto parts have also gained more and more consumers’ favor.
It is reported that the annual growth rate of the market demand for auto parts products in Africa is as high as 11%, and Africa has become a must-contend place for auto parts export.
01. African auto parts demand soars
「Demand Surges」
Used car auto parts wear and tear
Why is there such a strong demand for auto parts in Africa?On the one hand, the purchasing power of new cars in many parts of Africa is low, and the price of used cars is relatively low and more easily accepted by African consumers, which makes used cars the first choice of many consumers.Together with the imperfect infrastructure construction in many parts of Africa, used cars are also more suitable for local conditions.
Nigeria, for example, as the largest used car market in Africa, used car transactions account for more than 95% of the Nigerian automobile market.According to statistics, by the end of 2023, Nigeria’s car ownership has exceeded 15 million units and is showing a steady growth trend.
These used automotive vehicles, after exceeding their useful life, rely on replacement auto parts to keep the vehicle functioning properly in order to keep it in good condition, increasing the demand in the auto parts market.
Increase in car ownership
According to the United Nations Commission on Population and Development, the middle class in Africa has reached 360 million and is expected to grow to 1.1 billion by 2060.This growth means that more consumers will own automobiles, increasing the demand for vehicle repairs and parts replacement.
02.Market trends in Africa
「Market Trends」
The African auto parts market is emerging as one of the most important re-export markets, with year-on-year growth of more than 11%, and the value of the African auto parts market could double by 2025, with a market size of $18.5 billion, according to relevant data.
Countries such as Nigeria, Kenya, Uganda and Ghana have all seen double-digit growth in demand for automotive parts over the past five years.The African market is growing rapidly and the opportunities are endless. There are currently more than 21.6 million vehicles on the continent’s roads, accounting for nearly 70% of the total auto parts consumption.
Nigeria, for example, spends over $1 billion annually on imported parts and components.These auto parts include bumpers, tires, batteries, oil filters and lights, among others, and the potential of the auto parts industry is huge.
According to China Association of Automobile Manufacturers (CAAM), China’s auto parts exports amounted to 90.54 billion U.S. dollars from January to November 2023, a year-on-year increase of 7.6%, accounting for 47.3% of the total exports of automotive goods.At present, China’s auto parts have become a high-profile emerging force in overseas markets.
03. Popular Auto Parts Products in Africa
「Hot Products」
External Accessories
Exterior accessories such as lights, bumpers, tires, door handles, and windshield wipers are in high demand because they are replaced more frequently and many consumers prefer to replace them themselves.Especially for lights, tires and door handles, consumers are more inclined to choose products with unique and trendy appearance.
Internal fittings
Filters , generators, fuel pumps, brake pads, shock springs, etc. Interior accessories such as filters, engine parts and shock springs are also popular as many African consumers prefer to repair and maintain their cars themselves.These parts need to be replaced regularly, so there is a steady demand for them in the African auto parts market.
Automotive interior
With the development of technology and the improvement of consumers’ requirements for car interiors, interior products such as car navigation, car refrigerators, car speakers, cushion pillows and other interior products, which provide a more comfortable driving experience, are also showing a growing trend in the African market.
The demand for African auto parts market is growing rapidly. China, as a major supplier of auto parts in Africa, has won wide recognition in the African market for its price advantage and product quality.
Article source: Auto Export Pass
