Indian Auto-Giants Ashok Leyland and Tata Lead In Africa’s Commercial Vehicle Market

Posted on: Jul-2017 | By: 9 Dimen | Automotive

Commercial vehicles such as trucks and goods carrier vehicles are the most dominating segments in the global automobile market. Commercial vehicle manufacturers such as Mitsubishi, Sinotruk, Isuzu, Tata, Ashok Leyland, and Dongfeng attributed for 73.1% of overall sale in Arica’s commercial vehicle market. Owing to escalating infrastructure development there is a great opportunity for the Asia-based OEMs.

Rising industrialization and urbanization is motivating the development of infrastructure in Africa region, specifically the oil & gas and construction sector. These end-user applications are majorly responsible for the region-wise growth of commercial vehicle market. The vehicles such as flatbed trailers and heavy duty trucks are highly demanded owing to its effective performance.

Asian OEMs have rapidly made their paths into the African market. These players offer a great quality truck that can withstand at local conditions and fulfill customer’s expectation.

“There is noteworthy prospect for original equipment manufacturer in boosting its influence in existing developing markets such as India and China, to expand its supremacy across the regions such as Africa for lower costs and superior outfitted competence. For now, the regional automakers will witness a drastic augmentation due to growing inclination on urban transport,” Marshall Martin, Frost & Sullivan mobility industry analyst said.

As per the report, the commercial vehicle market is anticipated to grow from 317,533 units in 2016 to 538,774 by 2025. Based on overall contribution in the African CV market, South Africa is accounted for 53 % of the total sale, while Morocco, Nigeria, and Kenya are projected to grow rapidly in coming future.

While the market's perspective is acknowledged, it has been increasing at a diffident speed due to the unresponsive business attitude in Africa as a result of declining oil and product value. The concern associated to finance, labor, and automotive infrastructure restraint the CV market.

Rising demand for low emission releasing vehicles to the keep air clean and healthy, procurement of CNG and electric buses in the fleet of public transport, and growing partnerships and investment in African market are some of the drivers of the commercial vehicle market. Constant advancement in the technology and development of efficient and reliable equipment has fostered the growth of the global commercial vehicle market.