Africa (Kenya, Nigeria, Egypt, Morocco etc) Motorcycle Market Analysis

Africa Two-Wheelers Market Outlook

Africa Two-Wheelers Market Outlook 2024: Opportunity & Growth Analysis, 2016-2024

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Report Code : AM 1335

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Africa Two-Wheelers Market Outlook Global Two-Wheelers Market Share(%), By Region-2016-2024

Africa Two-Wheelers Market Size USD (Billion). 2016-2024 XX XX

XX% CAGR: (2016-2024)

XX XX

XX

Request Sample Repor t Request Sample Repor t 9.35 8.41 8.74 % 34.58 7.77 34.9 % % % % 21.3 2016 5% 23.36 2024 6% % 27.1 24.30 8% %

XX

XX XX

Asia Pacific

XX 2016e 2017e 2018f

2019f

Source: Goldstein Research

m a S 2020f

2021f

2022f

2023f

2024f

Latin America

Middle East and Africa

Motorcycles accounted for the highest market share XX% in Africa Two-Wheelers

XX%

Africa Two-Wheelers Share(%), By Regions-2016

Asia Pacific

With share in 2016, dominated the Global Two-Wheelers market

market

15.79%

Europe

Source: Goldstein Research

In 2016,

12.63%

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Market Africa Two-Wheelers Market Share (%), By Vehicles Type-2016

Africa Two-Wheelers Market Share (%), By Fuel Type- 2016

5.77%

29.47%

33.65% 60.58%

18.95% 23.16% Northern Africa

Southern Africa

Central Africa

Eastern Africa

Source: Goldstein Research

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Western Africa

Motorcycles

Scooters

Source: Goldstein Research

Mopeds

Source: Goldstein Research

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Gasoline

Electric

Africa Two-Wheelers Market Outlook

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 In 2016, Sub- Saharan Africa recorded XX% of vehicle ownership Request per capita t compared with XX% in the United States, XX% in Europe, and X% in China  XX million vehicle in use in Africa. Annual vehicle fleet growth rate in Kenya and Ethiopia is XX% and XX% respectively

Favorable Demographics

 More than XX% of vehicles imported into Kenya are used (2016). In Nigeria internet bases car sales account for XX% of all car sales (2015).

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• Africa imports X times more automotive products than it exports. In 2016, automotive imports valued USD XX billion and exports totaled USD XX billion.

• “Due to the rise of income levels in many African countries and the emergence of a middle class, Goldstein Research regards the continent as the final frontier for the global automotive industry. Given Africa’s population size and its positive economic outlook, automotive companies will be able to gain a competitive advantage by adopting a medium- to long-term view towards the continent.

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• In 2016, approximately XX million new vehicles were sold or registered across Africa. South Africa, Egypt, Algeria and Morocco – all countries with established and rapidly developing automotive industries – together accounted for more than XX% of total new vehicle sales in 2016. • South Africa, Egypt, Morocco, and Algeria have sizeable automotive assembly and manufacturing sectors. Despite these relatively well established automotive hubs in South Africa and countries in North Africa, fewer than XXX 000 vehicles were produced on the continent accounting for just over XX% of global production in 2016. The rest of the continent is mainly a retail dominated automotive market.

Government Spending on Infrastructure Development

Inefficient Public Transport

Growing Personal Disposable Income

• As a result the sector has been an attractive option for policymakers seeking to boost manufacturing employment, diversify export revenue sources and ultimately industrialise their economies.

Africa Two-Wheelers Market Size (Million Units) South Africa

2016

XX Million

2024

XX Million

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Algeria

Egypt

XX Million

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Africa Two-Wheelers Market Outlook Vehicles in use (%) in Africa, 2016

Two Wheelers in use (%) in Africa, 2016

Request Sample Repor Repor t Request Sample South Africa t Algeria

South Africa Algeria

XX%

Egypt

XX%

Egypt

Nigeria

XX% XX%

Nigeria

XX%

Libya

2016

XX%

Tunisia Kenya

XX%

Ivory Coast

XX%

Congo

XX%

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XX%

Morocco

XX%

RoAfrica

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Source: Goldstein Research

XX%

Morocco Libya Congo Tunisia Kenya Ivory Coast RoAfrica

Source: Goldstein Research

Annual vehicle registrations (Thousand Units) in Africa, 2016-2016 XX XX XX

XX XX

XX

Commercial Vehicles

XX

XX XX

XX

XX XX XX

XX

XX Two Wheelers

XX Passenger Cars XX

XX

2010

2011

2012

2013

2014

2015

2016

XX

Source: Goldstein Research

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Africa Two-Wheelers Market Outlook Major Asian Two Wheelers Exporting Countries to Africa (%), 2016 XX%

Major African Two Wheelers Request Sample Repor Request Importing Countries (%),Sample 2016 Repor

t

South Africa

XX% China

XX%

India

Thailand

XX%

Japan

XX%

2016 Indonesia

Vietnam

Source: Goldstein Research

m a S XX%

Taiwan

XX%

XX% XX%

XX%

e l p

XX%

t

XX%

Algeria Egypt Nigeria Morocco Libya Congo Tunisia Kenya Ivory Coast RoAfrica

Source: Goldstein Research

Total Production (Thousand Units) of Two Wheelers By Asian Countries and Export (Thousand Units) to African Countries- 20162024 XX XX XX

XX

Production

XX XX

Exports (2106e)

XX XX

XX XX XX

XX

2017e

2018f

XX

XX 2015e

2016e

2020f

2024f

Source: Goldstein Research

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Inventory Stock

Growth Drivers

Request Sample Repor t Request Sample Repor That rising consumer demand, allied to African governments’ willingness to offer t generous terms to would-be manufacturers, means that companies are being doubly incentivised to enter new markets on the African continent.

Young Population and Rising Middle-Class Income 

But while the prize on offer appears great, the risks of moving too soon with expensive capital investments remain. 

Ethiopia was Africa’s fastest growing economy in 2015 and has the continent’s second largest population. Ethiopia’s automotive potential is underpinned by the state-driven economy and a government that is geared toward industrialisation, which makes it the African economy that is most similar and arguably likely to replicate the development successes of China of the mid-1980s onwards



Kenya is the largest and wealthiest economy in East Africa and plays an important regional role. Kenya’s sizeable middle class, progressive business environment, regional market access and history of automotive assembly positions Kenya motorcycle market as a potential East African automotive hub.



Nigeria, as Africa’s largest economy, presents a sizeable untapped automotive market with the continent’s largest population and relatively high GDP per capita. For this reason, Nigeria has generated the most interest among automotive players as a future market in Africa. Nigeria also has a legacy of having sizeable assembly plants.

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Comparison of Asian and sub-Saharan African (SSA) markets, production and trade, China

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sub-Saharan Africa

Passenger Car Exports

XXX

XX

Commercial Vehicle and Bus Imports

XXX

Commercial Vehicle and Bus Exports

XXX

Motorcycle Imports

XXX

Motorcycle Exports

XXX

XX

Motorcycle and Bike Parts Imports

XXX

XX

Motorcycle and Bike Parts Exports

XXX

XX

XX XX XX

Source: Goldstein Research

Impact Analysis:-

 As indicated above, the market for vehicles in SSA is growing very rapidly. While it is currently small, the region will become a significant global market over the next decade. This growing demand is for the most part being met by imports  Imports have risen sharply and XX percent of vehicles sold in 2016 were locally assembled, down from XX percent in 2004. Copyright

High

Medium

Impact on Africa TwoWheelers Market

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Low

Market Restraints



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Request Sample Repor Request Sample Repor According to industry players, the overall new and second-hand market combined t ranges between XX 000 and XX million units per year. Smuggling, grey imports of second-hand vehicles and the lack of reliablet data however, make the exact size

Grey Imports of Second-Hand Vehicles

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of Nigeria motorcycle market and fleet size difficult to quantify. Challenges concerning the licensing and identification of vehicles further contribute to this difficulty  Imported second-hand vehicles, so-called tokunbos, dominate the Nigerian vehicle market as only a small segment of society is able to afford new vehicles. A representative of a leading automotive firm estimates that a mere XX% of the population is able to afford new vehicles given the current economic and financing environment. While commercial banks offer vehicle finance, accessing these credit facilities has become increasingly unattractive to individual consumers as credit facilities are provided at interest rates above XX% per annum and require at least a XX% down-payment  In the absence of affordable finance solutions, secondhand vehicles remain the more attractive option for private vehicle buyers. According to a representative of a leading automotive company, second-hand passenger vehicles accounted for XX % of sales in 2016. The share of tokunbos in the commercial vehicle market is even larger, reaching up to XX% of the market according to a leading commercial vehicle manufacturer.

China and India’s Two Wheeler Exports (Million Units) by Region- 2017 XX XX XX

XX

XX XX

XX

Sales of Motorcycles and Scooters in SubSahara African Countries 2015-2016 COUNTRY

2016

2015

Variance (%)

Nigeria

XX Thousand

X%

Ethiopia

XX Thousand

X%

Kenya

XX Thousand

XX%

Zambia

XX Thousand

XX%

Rwanda

XX Thousand

X%

TOTAL

XX Thousand

X%

XX XX

XX

XX XX

XX Asia Pacific Latin America

Africa

India

Middle East

XX XX

North America; XX XX

Europe North America

China

Source: Goldstein Research

Impact Analysis: Due to the limited accessibility to and expensive financing of vehicles, new vehicles remain out of reach for most Nigerians and the largest share of current vehicle demand comes from the business community

Source: Goldstein Research

Impact on Africa Two-Wheelers Market High

Medium

 Corporate buyers account for approximately 70% of overall new vehicle purchases, indicating the suppressed demand from private buyers,66 arguably the market segment with the largest growth potential.

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Low

Africa Two-Wheelers Market Outlook : 20162024 Africa Two-Wheelers Market Share (%), By Vehicle Type, 2016-2024

5.05% XX%

Motorcycles

2016

XX%

44.44%

Scooters

50.51%

2024

Request Sample Repor Request Sample Repor tDespite the positive forecasts, t players are less bullish in industry their short-term outlook. Much of 2015 has seen producers subject to a range of broader macroeconomic challenges, including an energy crisis, a currency devaluation and a dollar shortage that is hampering output and inflating the cost of production.

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 Given that the industry imports as much as XX% of the required components, this has had a substantial impact on the cost of Source: Goldstein Research production and subsequently the Africa Two-Wheelers Market Y-O-Y Growth, By Vehicle Type 2016- selling price of vehicles. “Profit margins are low, and with the 2024 added pressures, losses are inevitable,” Mopeds

XX%

2016e

2017e

2018f

m a S XX%

2019f

XX%

2020f

2021f

2022f

2023f

XX%

2024f

Source: Goldstein Research

To date, new vehicle sales on the continent as well as the local production and assembly of vehicles have been limited by various factors such as a small market size, lower purchasing power, a less competitive operating environment and an insufficient policy environment.

Africa Two-Wheelers Market Size (USD Billion), By Product Type-2016-2024 XX

XX XX

XX

2016

2024 Motorcycles

Scooters

Mopeds

Source: Goldstein Research

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Africa Two-Wheelers Market Outlook By Motorcycles: 2016-2024 Africa Two-Wheelers Market Size (USD Billion), By Motorcycles, 2016-2024 XX XX XX

XX

Request Sample Repor t Request Sample Repor Many t potential new drivers in the region still own two-wheelers, with motorcycle penetration rates at over XX% in Egypt, Morocco, Nigeria and South Africa.

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At present the vehicles are assembled from imported SKD kits XX XX with a limited degree of local XX inputs-sourcing due to the lack of a reliable and adequate domestic XX supplier base. While current assembly figures are low, with XX Peugeot Automobile Nigeria 2016e 2017e 2018f 2019f 2020f 2021f 2022f 2023f 2024f recording the largest number of Source: Goldstein Research vehicles assembled in 2015 with units, the automotive Africa Two-Wheelers Market Y-O-Y Growth, By Motorcycles 2016- 400 companies aim at increasing their 2024 annual output in order to capitalize on the long-term growth prospects XX% of the Nigerian market. XX% XX

XX

XX%

2016e

2017e

2018f

XX

m a S XX%

2019f

XX%

2020f

XX%

2021f

XX%

2022f

2023f

Source: Goldstein Research

2024f

Goldstein views Africa’s automotive sector as the final frontier for automotive growth. The viability of automotive assembly or production in Africa is regarded as limited in the short term, but has largely untapped potential in the long term.

Motorcycle Market Growth in Different Regions, 2012-2016 XX% Central Africa Southern Africa Eastern Africa Western Africa

XX% XX% XX% XX% XX% XX% XX% 2012

2013

2014

2015

2016

Source: Goldstein Research

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North African Two-Wheelers Market Size (USD Billion) & Y-O-Y growth (%), 2016-2024

North African Two-Wheelers Market Size (USD Billion), Compound Annual Growth Rate (%), Repor Request Sample Request Sample Repor Y-O-Y Growth Rate (%), 2016-2024

t

XX

XX XX

XX

XX XX XX

XX%

XX XX XX 2016e

XX%

m a S XX%

2017e

XX%

XX

CAGR: (2016-2024)

XX XX

XX

XX%

XX

XX%

2018f

2019f

2020f

Source: Goldstein Research

While there has been political and civil conflict in North Africa in recent years, the region’s geographical position and business opportunities makes it an attractive area for foreign investors and local business expansion. North Africa in general is a great place to invest for the long term, especially large-sized industries that are always looking to expand in Africa, starting from the north… Its positioning also offers a link between the African market and Europe, as well as West Asia.

However, the biggest challenge facing many multinational businesses is the limitations to expansion and allocating investments, mostly for medium-size businesses that struggle with several poor public and government conditions which cut off their ability to launch new businesses in these regions.

e l p XX%

XX%

2021f

2022f

XX%

XX% XX% XX% XX% XX% XX% XX% XX% XX%

2023f

Motorcycles Import (Thousand Units) in Northern Africa

XX XX XX XX XX XX XX XX

2016 2017 2018

219

2020 2021 2022 2023 2024

Source: Goldstein Research

One of the reasons for the success of Indian manufacturers in Africa is due to the fact that conditions in the two regions are relatively similar. “Typical African markets demand durable, cost effective transport solutions, and here new manufacturers groomed in similarly trying emerging economy environments are likely to excel. “India’s strength in Africa has consistently been the ability of its home-grown multinational corporations to leverage domestic success and adaptability to similarly challenging emerging African economies.” Copyright

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Africa Two-Wheelers Market Attractiveness-By Country, 2016-2024 Africa Two-Wheelers Market Attractiveness-By Country, 2016-2024

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7 6 5

CAGR (%)

4 3 2 1 0 0

2

4

6

8

10

12

14

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Market Size (USD Million) North Africa

South Africa

Western Africa

Source: Goldstein Research

Central Africa

Eastern Africa

According to the above graph, Southern and Western Two-Wheelers market is anticipated to be the most attractive market across the region, for new entrants looking to enter in the market, existing players looking for business expansion and investors seeking investment opportunities over the forecast period i.e. 2016-2024

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To penetrate fertile geographies, two wheeler manufacturers must work with top-level distributors. These distributors will eventually have to devise sound marketing strategies and persuasive selling points for two wheelers. A winning policy will include innovative and low-cost products for South Aferican markets, along with high configuration design and robust aftersales service. Automobile businesses must also make the investment necessary to produce a motorcycle model suitable for each geography.

Africa Two-Wheelers Market BPS Analysis- By Regions, 2016-2024 XX%

XX%

XX% XX%

XX%

XX% XX%

XX% XX% XX%

Central Africa Western Africa

30%

XX%

Eastern Africa

28%

Southern Africa

XX% XX%

31%

XX%

Northern Africa 25%

XX% 2016

2024

Source: Goldstein Research

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Africa Two-Wheelers Market Outlook Honda Motors (Company Overview & Business Strategy)

Founded 1946

Employees 208,399

Request Sample Repor t Request Sample Repor t Website www. global.honda.com

Headquarters Japan

Company Overview 

Honda Motor Company, Ltd. is a Japanese public multinational conglomerate corporation primarily known as a manufacturer of automobiles, aircraft, motorcycles, and power equipment.

Major Products



Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year.

Automobiles



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Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, and other products. Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland.

Motorcycles

Power Products

Honda Jet

Business Strategy



Enterprise Strategy: The Mission Statement of Honda is try to maintain a global point of view, with the dedication to supply the highest quality products at a reasonable price for worldwide customer satisfaction.



Corporate Strategy: Honda's portfolio includes four businesses: Automobiles business, Motorcycles business, Power business and honda jets. Even though stepping into Automobile industry rather late at 1963, Honda quickly leads the industry with characteristics like superior fuel economy, optimum safety, and driving pleasure. Honda's sales and production in this industry prove successful steadily not just in U.S. but also in many regions worldwide.



Business Strategy: One of the proudest things about Honda is its R&D system. With the systematic way of resembling, focus on durability, reliability and basic performance to establish a creative and innovative technical foundation. Also, Honda has established independent local operation around the world and pushed local autonomy and proactive efforts to localize the needs regional with mutual understanding.

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