Africa : new eldorado for truck export ?

Since 2012, we notice that Africa is more and more popular for the export and sale of trucks. Gilbert GAILLARDON, administration manager of the Garage Gérard Poulalion, says : « 20 years ago, our trade activity was on a local and national level. Today, we sell more and more vehicles in Western Africa as well as in the Gulf countries.» Find out why Africa has become the new market to conquer.

Statistics that attract foreign investors

Africa's population is booming (1,111 milliard inhabitants in 2013), and life expectancy increases. The continent's growth was an average of 4% in 2013, and its GDP should reach 4,8% in 2014. The government encourages inter-African trade, especially with the creation of new motorways to connect the African capitals.

Zoom on the truck market in Africa

With the developement of the middle classes and their consumption, the need for transport increases. Thus, the truck and van sale market has been rapidly increasing in the last two years. With 396 000 vehicle registrations in 2012, the African market only reprensents 1,9% of the world market in terms of truck and van sales. But in the beginning of 2013, the African market boomed with more than 5,1% market shares worldwide.

European manufacturers in Africa

In Africa, European manufacturers benefit from preferential custom agreements. Renault, Mercedes and Man sell their « Premium » range to branches of European groups or to local transporters that have access to bank credits and leasing.

But for some time now, more and more European manufacturers implant their factory in Africa. They compete with China that sell trucks 10 to 20% cheaper.

Some manufacturers such as Iveco or Volvo choose to associate with Chinese manufacturers to launch their own make on the African market. This strategy gives them the opportunity to offer trucks with a better qiality-price ratio. 

Trucks designed for the African market

To meet the specific needs of the African market, European manuafacturers launche new ranges especially designed for that market.

Thus, Renault Trucks just introduced their new Euro 3 C, K and D vehicle ranges in South Africa, in Nothern Africa and in the Middle East. Specially designed to withstand the conditions of use and climate, these vehicles are made for the construction and mining industries.

 « With the launch of our new range, technically adapted to resist the challenging operating conditions found in Africa and the Middle East, we are very optimistic with regard to our future performance on these markets which can leverage significant growth for Renault Trucks.. » says Bruno Blin, president of Renault Trucks in his press release.

In 2014, Volvo launched a new range (FH, FM and FMX) for Northern Africa. In 2013, the manufacturer held 22% of the market share in Morocco and 17% in Tunisia.

Iveco, which has 40 dealerships, 50 retail outlets and 70 technical centres on the continent, also offer its range of tropical Euro 3 models for Africa and the Middle East.