Africa (Kenya, Nigeria, Egypt, Morocco etc) Motorcycle Market Analysis - PowerPoint PPT Presentation

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


According to Goldstein Research, “Africa Two Wheelers Market is anticipated to expand at a compound annual growth rate of 9.1% over the forecast period i.e. 2016-2024.Based on geography, Kenya motorcycle market represents vast opportunity for the growth in the country. As per statistics by the Kenya National Bureau of Statistics (KNBS) 126,822 motorcycles were imported in the first half of 20147, up from 70,770 units imported in the same period last year. – PowerPoint PPT presentation

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Title: 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
91-120-473-0422, 91-991-071-6331
Published By Goldstein Research
Copyright All Rights Reserved, Goldstein
Copyright All Rights Reserved, Goldstein
Africa Two-Wheelers Market Outlook
Global Two-Wheelers Market Share(), By
Africa Two-Wheelers Market Size USD (Billion).
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Source Goldstein Research
Source Goldstein Research
In 2016, Motorcycles accounted for the highest
market share XX in Africa Two-Wheelers market
With XX share in 2016, Asia Pacific dominated
the Global Two-Wheelers market
Africa Two-Wheelers Market Share (), By Fuel
Type- 2016
Africa Two-Wheelers Market Share (), By Vehicles
Africa Two-Wheelers Market Share(), By
Source Goldstein Research
Source Goldstein Research
Source Goldstein Research
Copyright All Rights Reserved, Goldstein
Africa Two-Wheelers Market Outlook
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  • In 2016, Sub- Saharan Africa recorded XX of
    vehicle ownership per capita 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
  • 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).
  • Africa imports X times more automotive products
    than it exports. In 2016, automotive imports
    valued USD XX billion and exports totaled USD XX
  • 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 Africas 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
  • 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.
  • 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.

Favorable Demographics
Government Spending on Infrastructure
Inefficient Public Transport
Growing Personal Disposable Income
Africa Two-Wheelers Market Size (Million Units)
South Africa
XX Million
XX Million
XX Million
XX Million
XX Million
XX Million
Copyright All Rights Reserved, Goldstein
Copyright All Rights Reserved, Goldstein
Africa Two-Wheelers Market Outlook
Vehicles in use () in Africa, 2016
Two Wheelers in use () in Africa, 2016
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Source Goldstein Research
Source Goldstein Research
Annual vehicle registrations (Thousand Units) in
Africa, 2016-2016
Source Goldstein Research
Copyright All Rights Reserved, Goldstein
Copyright All Rights Reserved, Goldstein
Africa Two-Wheelers Market Outlook
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Major Asian Two Wheelers Exporting Countries to
Africa (), 2016
Major African Two Wheelers Importing Countries
(), 2016
Source Goldstein Research
Source Goldstein Research
Total Production (Thousand Units) of Two Wheelers
By Asian Countries and Export (Thousand Units) to
African Countries- 2016-2024
Source Goldstein Research
Copyright All Rights Reserved, Goldstein
Copyright All Rights Reserved, Goldstein
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  • Young Population and Rising Middle-Class Income
  • That rising consumer demand, allied to African
    governments willingness to offer generous terms
    to would-be manufacturers, means that companies
    are being doubly incentivised to enter new
    markets on the African continent. But while the
    prize on offer appears great, the risks of moving
    too soon with expensive capital investments
  • Ethiopia was Africas fastest growing economy in
    2015 and has the continents second largest
    population. Ethiopias 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.
    Kenyas 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 Africas largest economy, presents a
    sizeable untapped automotive market with the
    continents 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

Comparison of Asian and sub-Saharan African (SSA)
markets, production and trade,
China sub-Saharan Africa
Passenger Car Exports XXX XX
Commercial Vehicle and Bus Imports XXX XX
Commercial Vehicle and Bus Exports XXX XX
Motorcycle Imports XXX XX
Motorcycle Exports XXX XX
Motorcycle and Bike Parts Imports XXX XX
Motorcycle and Bike Parts Exports XXX 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.

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  • Grey Imports of Second-Hand Vehicles
  • According to industry players, the overall new
    and second-hand market combined ranges between XX
    000 and XX million units per year. Smuggling,
    grey imports of second-hand vehicles and the lack
    of reliable data however, make the exact size 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 Indias Two Wheeler Exports (Million
Units) by Region- 2017
Sales of Motorcycles and Scooters in Sub-Sahara
African Countries 2015-2016
COUNTRY 2016 2015 Variance ()
Nigeria XX Thousand XX Thousand X
Ethiopia XX Thousand XX Thousand X
Kenya XX Thousand XX Thousand XX
Zambia XX Thousand XX Thousand XX
Rwanda XX Thousand XX Thousand X
TOTAL XX Thousand XX Thousand X
Source Goldstein Research
Source Goldstein Research
Impact on Africa Two-Wheelers Market
  • 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
  • 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

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Africa Two-Wheelers Market Share (), By Vehicle
Type, 2016-2024
  • Despite the positive forecasts, industry players
    are less bullish in 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
  • Given that the industry imports as much as XX
    of the required components, this has had a
    substantial impact on the cost of production and
    subsequently the selling price of vehicles.
    Profit margins are low, and with the added
    pressures, losses are inevitable,
  • 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.

Source Goldstein Research
Africa Two-Wheelers Market Y-O-Y Growth, By
Vehicle Type 2016-2024
Source Goldstein Research
Africa Two-Wheelers Market Size (USD Billion), By
Product Type-2016-2024
Source Goldstein Research
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Africa Two-Wheelers Market Size (USD Billion), By
Motorcycles, 2016-2024
  • Many potential new drivers in the
  • region still own two-wheelers, with motorcycle
    penetration rates at over XX in Egypt, Morocco,
    Nigeria and South Africa.
  • At present the vehicles are assembled from
    imported SKD kits with a limited degree of local
    inputs-sourcing due to the lack of a reliable and
    adequate domestic supplier base. While current
    assembly figures are low, with Peugeot Automobile
    Nigeria recording the largest number of vehicles
    assembled in 2015 with 400 units, the automotive
    companies aim at increasing their annual output
    in order to capitalize on the long-term growth
    prospects of the Nigerian market.
  • Goldstein views Africas 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

Source Goldstein Research
Africa Two-Wheelers Market Y-O-Y Growth, By
Motorcycles 2016-2024
Source Goldstein Research
Motorcycle Market Growth in Different Regions,
Source Goldstein Research
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North African Two-Wheelers Market Size (USD
Billion), Compound Annual Growth Rate (), Y-O-Y
Growth Rate (), 2016-2024
Source Goldstein Research
While there has been political and civil conflict
in North Africa in recent years, the regions
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.
Motorcycles Import (Thousand Units) in Northern
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. Indias 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.
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Africa Two-Wheelers Market Attractiveness-By
Country, 2016-2024
Market Size (USD Million)
Source Goldstein Research
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 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
Source Goldstein Research
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Honda Motors (Company Overview Business
Founded 1946
Website www.
Employees 208,399
Headquarters Japan
Company Overview
Major Products
Power Products
Honda Jet
  • Honda Motor Company, Ltd. is a Japanese public
    multinational conglomerate corporation primarily
    known as a manufacturer of automobiles, aircraft,
    motorcycles, and power equipment.
  • 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.
  • 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.

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 RD 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
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