Tanzania is one of the eight markets to which luxury car manufacturer Jaguar Land Rover exports the bulk of its vehicles in sub-Saharan Africa (SSA), The Guardian has reliably learnt.
According to the company’s report presented at the 2015 Retail Congress Africa last month in South Africa, business growth and prospects in the markets are mostly inhibited by the grey market.
“The grey market makes up the majority of car sales in sub-Saharan Africa, with imports from Europe, Asia and the US accounting for upwards of 60 per cent of all sales,” its SSA director of operations, Nigel Clarke, said.
The 3rd annual Retail Congress Africa brought together senior retail leaders and industry experts from throughout the region and across the globe. The congress not only addressed the opportunities for retailers, but also flagged key risks and uncovered innovative solutions and best practices.Clarke said despite of the ongoing commodities crisis, which has seen oil prices drop below US$40 a barrel, Nigeria and Angola continue to be Land Rover’s largest markets in in SSA.
The Angolan economy generates about two-thirds of its revenue and most of the foreign exchange earnings from oil.
Apart from Tanzania, Nigeria and Angola, the luxury car manufacturer, whose SSA head offices are in Pretoria, exports the bulk of its vehicles to Zambia, Kenya, Ghana, Mauritius and Zimbabwe.
The company said it plans to expand operations with focus on growing the business in six new but smaller markets over the next two years. The targeted economies through local country partners are Senegal, Côte d’Ivoire, Gabon, Congo-Brazzaville, Malawi and Mozambique.
“Due to the expansion of our office in Pretoria and the fact many of our processes and systems are now in place, which has taken a long time, we are much more ‘fitter’ to take on these markets.”
With the widening of the middle class, luxury car manufacturers have been increasingly expanding their operations in the African market. The expansion drives have also been prompted by the growth of high-net worth individuals (HNWIs).
The Wealth Report 2015 has it that there will be a considerable rise in the number of HNWIs across the continent over the next decade with Nigeria and Côte d’Ivoire experiencing growth rates of 90 per cent and 119 per cent respectively by 2024.
Competitor BMW said recently that it was to US$417 million y Côte d’Ivoire to build its X3 sports utility vehicle in South Africa for export and local sales. Another major Jaguar Land Rover rival, Porsche, has set up dealerships in South Africa, Ghana, Nigeria, Angola and Kenya.
SOURCE: THE GUARDIAN
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