The following is an analysis of the used car export market to Angola:
Angola has a large population of around 36.684 million people and is in a phase of economic recovery, with urbanization accelerating and car ownership of around 40 cars per 1,000 people, giving the automotive market plenty of room for growth.1 Its used car market has grown significantly in recent years, and demand for used cars is expected to grow steadily in the future, as the economy continues to develop and the population’s income level rises.
Price factor: Angola’s limited level of economic development means that consumers are more price-sensitive when purchasing a car, and used cars fit into the budgets of many consumers due to their relatively low prices.
Brands and models: Angolan consumers prefer European, American and Japanese brands of used cars, such as Volkswagen, Renault, Chevrolet, Jeep, Ford, Honda, Mazda, etc.
2. European cars are more popular locally, while U.S. used cars sell poorly due to the availability of spare parts.
International competition: Used cars are exported to Angola from many countries around the world, and the competition is relatively fierce.Portugal is one of the main suppliers of used cars to Angola. Angola was once a Portuguese colony, and the two countries have close ties in terms of language and culture, so Portuguese used cars have certain advantages in the Angolan market.
Competition from Chinese companies: China’s used car export business has been growing in recent years, and in March 2024 the export of used cars will be fully liberalized.Chinese used cars are competitively priced, and market recognition of some Chinese branded cars is gradually increasing in Angola.
Import Policy: Angola allows the importation of second-hand light vehicles within 5 years, second-hand heavy vehicles within 8 years and second-hand motorcycles within 3 years from the date of first registration.A Pre-Shipment Inspection (PSI) issued by the competent authority of the vehicle’s country of origin and valid for a period of not less than 6 months is required before importation.
Tax policy: Temporarily imported vehicles are allowed to stay at the port for 2 years, renewable for 1 year, with an agreed deposit of 40%-45% of the CIF price, which is returned when the vehicle is re-exported.The customs duty on permanently imported vehicles is 10% (5% for pick-up trucks), plus the corresponding VAT.If the vehicle arrives at the port of Luanda and takes more than 30 days to be cleared, a fee of 5% of the c.i.f. price will be charged.
Logistics and Transportation: Angola imports used cars mainly through ports such as Luanda and Durban, and the logistics and transportation chain may face some challenges, such as port congestion, long transportation times, and high transportation costs, which can increase the overall cost of used cars.
Market regulation: the Angolan used car market lacks uniform quality standards and evaluation systems, and the market is insufficiently regulated, with the potential for fraudulent behavior, which affects consumer confidence and is not conducive to the healthy development of the market
Text source: Digitized Car Exports
