Ethiopia 2020. Toyota holds market crown in market down 29.7%

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Ethiopia Car market
The 2021 Ford Mustang Mach 1

Ethiopian vehicles market falls due to the global pandemic affecting sales. Indeed, Full Year 2020 sales are 1.351, down 29.7% compared to 2019. Toyota consolidates leadership while Lifan (-33.7%) loses 0.7% market share.

Economic Environment

Midway through the second quarter of FY 2020 (8 July 2020–7 July 2021), the economic panorama remains grim. Restrictive measures to curb the spread of the coronavirus remain largely in place, with only some schools reopening in late October.

As such, domestic demand is set to be dented in the quarter. Moreover, the armed conflict in the country’s Tigray region has intensified recently, further weighing on the domestic economy and sparking fears of civil war. Tensions on the external front also remain as a new round of talks with Egypt and Sudan conducted in early November failed to overcome differences over the Nile river dam dispute.

Additionally, rising new Covid-19 cases globally will likely hamper the external sector and further weaken foreign demand, thereby dragging on the economy in the quarter.

Market Trend

The Ethiopian vehicle market has been affected in 2020 by the global COVID-19 pandemic, which impacted sales significantly.

The market in recent years has been revitalized by the presence of several small local assembly plants, built by Chines BYD, FAW, Lifan, Sinotruck, and Geely, plus Toyota and, since 2017, Kia.

Despite the recent years’ positive economic environment, the Ethiopian market has deteriorated, dropping from near 4.000 units in 2015 to 2.034 in 2018.

In 2019, the market (including HCVs) declined again, marking the sixth annual loss in a row. Indeed, Full-year sales have been 1.935, down 4.9% from the previous year.

Full-Year sales for 2020 have been 1.351, reporting a 29.7% decrease compared to 2019.

Brand-wise, this year the leader Toyota (+8.3%) gained 12.5% market share, followed by Ford (+29%), which gained 7.3% share. Lifan (-33.7%) was in the third position and lost 0.7% market share.

The most sold model in the country this year is the Ford Ranger with 190 sales, holding 14.1% market share.