Madagascar 2020. Auto sales down 7.8%, while Renault falls 14.1%

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Madagascar car market
The 2021 Audi e-tron Sportback

Madagascar vehicles market falls slightly due to the global pandemic affecting sales. Indeed, Full Year 2020 sales are 1.751, down 7.8% compared to 2019. Renault falls 14.1% and loses 1.4% share.

Economic Environment

Madagascar is a mostly unregulated economy with many untapped natural resources, but no capital markets, a weak judicial system, poorly enforced contracts, and rampant government corruption.

The country faces challenges to improve education, healthcare, and the environment to boost long-term economic growth. Agriculture, including fishing and forestry, is a mainstay of the economy, accounting for more than one-fourth of GDP and employing roughly 80% of the population.

Market Trend

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

Madagascar’s vehicle market has been characterized by an unstable trend in recent years. Indeed, after being hit by a large drop in 2016 the market immediately recovered, bouncing back in 2017 at 2.126 units. However, in the following years registrations started declining, and in 2018 fell 6.2% at 1.995 units.

In 2019, signed the second consecutive year of decline. Indeed, Full-year sales have been 1.894, down 5.1% from the previous year.

Full-Year sales for 2020 have been 1.751, reporting a 7.8% decrease compared to 2019.

Brand-wise, this year the leader Toyota (+6.2%) gained 3.2% market share, followed by Renault (-14.1%), which lost 1.4% share. Nissan (-0.6%) was in the third position and gained 0.7% market share.

The most sold model in the country remains the Toyota Hilux with 270 sales (+12.5%), holding 15.4% market share.