Ethiopia 2017. Sales fell a sharp 32%

479
Ethiopia Auto sales
Toyota-Hiace

Ethiopia Auto sales fell down a sharp 32% in the 2017 albeit the fast growing economic speed unchanged with Ethiopia still leading the African economies. Despite opening of several local plants, new vehicles prices are still too high for local income.

Economic Environment

Ethiopia remains mired in a political crisis following the resignation of Prime Minister Hailemariam Desalegn in February. A new leader has yet to be named by the ruling coalition, and anti-government demonstrations and outbreaks of violence continued in recent weeks, despite a state of emergency being declared. The new prime minister will need to focus on calming political and ethnic tensions, as well as ensuring cohesion within the ruling coalition for smooth policymaking. Economic momentum, however, is unlikely to be derailed by the current political uncertainty, and the incoming leader will inherit one of Sub-Saharan Africa’s fastest growing economies, supported by a robust infrastructure investment program.

Ethiopia is the second most populous country in Africa after Nigeria with 90 million people ans still strong population growing index.

Market Trend

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

Despite still positive economic environment, the Ethiopian market in recent years has deteriorated, dropping from near 4.000 units in 2015 to 3.282 in 2017.

Sales 2012Sales 2013Sales 2014Sales 2015Sales 2016Sales 2017Sales 2018 e
Car+LCV4.0734.0184.4875.2065.7853.8663.698
HCV6481.0111.3101.3671.193842814
Total4.7215.0295.7976.5736.9784.7084.512

2012 Var2013 Var2014 Var2015 Var2016 Var2017 Var2018 var e
Car+LCV-32,7%-1,4%11,7%16,0%11,1%-33,2%-4,3%
HCV15,3%56,0%29,6%4,4%-12,7%-29,4%-3,3%
Total-28,6%6,5%15,3%13,4%6,2%-32,5%-4,2%

At brand-wise, the market leader was Isuzu with 888 sales (-44.4%) followed by Toyota with 787 (-47.9%) and Lifan with 516 (-29.5%).