Malawi vehicles market falls due to the global pandemic affecting sales. Indeed, Full Year 2020 sales are 1.153, down 29.1% compared to 2019. Toyota holds over 60% market share despite falling 25.9%.
Malawi’s three-year pathway of fast economic growth has been interrupted by the COVID-19 (coronavirus) pandemic. The full extent of the pandemic’s negative impact is still uncertain as the crisis unfolds but the widespread impact of the COVID-19 crisis is expected to be felt in the fourth quarter and beyond, with reductions in tax revenue paired with increased expenditure on health and economic policy responses.
Malawi’s economy grew by 4.4% in 2019, a marked increase from 3.5% in 2018 supported by a rebound in agriculture production, as maize and key crops apart from tobacco increased.
Real gross domestic product (GDP) growth for 2020 was projected in September 2019 at 4.8% due to an expectation of the second consecutive year of strong harvests, offset by continuing political uncertainty weighing on business activity and investment.
The Malawi vehicle market has been affected in 2020 by the global COVID-19 pandemic, which impacted sales.
Malawi’s new light vehicles market was in recent years is stable at still low-level as consumers prefer to buy used imported vehicles, more affordable for the low local income. After the peak of 1.777 sales achieved in 2013, the market is stagnating. In 2017 vehicle sales have been 1.636, down in double-digits, while in 2018 fell at 1.514.
In 2019, according to data released by the Association of Car Importers, the market registered a shy recovery. Indeed, Full-year sales have been 1.627, up 7.5% from the previous year.
Full-Year sales for 2020 have been 1.153, reporting a 29.1% decrease compared to 2019.
Brand-wise, this year the leader Toyota (-25.9%) gained 2.7% market share, followed by Ford (+7.2%), which gained 4.8% share. Nissan (-39.2%) was in the third position and lost 2% market share.
The most sold model in the country remains the Toyota Hilux with 210 sales (-42%), holding 18.2% market share.