CHINA’S KEEN INTEREST IN THE AFRICAN AUTOMOTIVE MARKET
Posted on :Monday , 28th November 2016
The global automotive business is in its most disruptive era since the advent of the industry over a century ago, creating an abundance of opportunities for new and established companies in the global automotive market. Analysts anticipate the market to grow by 2%, reaching 91 million new units sold in 2016.
The African economy has seen steady growth for the past decade and even with sustained low oil and commodity prices, the automotive industry is expected to grow considerably in most countries. Africa is forecast to grow between 3% and 3.7% in 2016 with East Africa retaining its position as the fastest growing region on the continent.
Africa’s automotive market remains relatively underdeveloped in comparison to Europe, Asia and North America. Although untapped for the most part, the buying power of its consumers is growing. This presents huge potential for new players looking to enter the market, especially with increasing industrial prospects on the continent driven by growing local manufacturing, better infrastructure and strong economic growth. The opportunities for the automotive industry in Africa are looking increasingly attractive.
China, on the other hand remains the world’s largest automotive market and automotive manufacturing country since 2009. However as domestic growth slows, Chinese automotive companies are stepping up exports, raising the stakes in global auto markets by heightening competition with local and foreign brands. Due to stiff consumer scrutiny in developed markets such as Europe and the U.S., exporters are targeting fast-growing emerging markets like Africa with low-cost cars, components and spare parts.
Chinese exporters and manufacturers have been working extra-hard under the radar to secure less developed markets as Africa as these will form the bulk of global car sales growth over the next couple of decades. They are now relying more and more on export markets to boost their bottom-line, especially as conditions have worsened for local passenger cars at home over the last couple of years.
With ample encouragement and support from the government, Chinese auto exporters have more than doubled their exports to the continent since 2010, with revenue from Africa topping more than $1 billion. One of the reasons why Chinese companies have flourished thus far is the free-trade zone in East Africa. The five country members in East Africa, or the East African Community, waive taxes in inter-bloc trades and that in turn has facilitated the expansion of Chinese auto companies in the region.
Leading this expansion of Chinese auto companies in East Africa is Genertec International Advertising & Exhibition Co. – organisers of the China International Auto Products Expo (CIAPE), who will be bringing a huge delegation of Chinese automotive manufacturers and exporters to AUTOEXPO AFRICA 2017 – East Africa’s largest automotive trade show. AUTOEXPO AFRICA 2017 is among the most prestigious auto and spare part shows in the world, providing unparalleled access to the latest products, technologies, innovations, people and ideas that matter most in the industry.
AUTOEXPO AFRICA 2017 is scheduled as below:
AUTOEXPO KENYA: 11th – 13th April – KICC, Nairobi, Kenya
AUTOEXPO ETHIOPIA: 12th – 14th May – Millennium Hall, Addis Ababa, Ethiopia
AUTOEXPO TANZANIA: 16th – 18th August – MCC, Dar es Salaam, Tanzania
From L to R: Mr. Neville Trinidade - Exhibition Manager, Expogroup ; Mrs. Zhang Yazhu – Vice President, Genertec ; Mr. Li Rengui – Chairman of the Board & President, Genertec ; Mr. Max Lewis – Director of Sales, Expogroup ; Mrs. Poonam Jain – Finance Manager, Expogroup ; Mrs. Pooja Vinod Trinidade – PR Manager, Expogroup
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Expogroup
Expogroup is a full service exhibition organiser with over 28 years experience in International trade exhibitions. Our current portfolio includes 28 annual exhibitions from a diverse range of industries being held across the Middle East & Africa.
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