Mozambico auto sales in 2017 fell down 24.5%, an impressive lost after the minus 48.7% reported in the previous year. The market was hit by huge inflation which reduced dramatically the purchase power. Toyota is leader but with a low market share.
Mozambican economy is showing some signs of recovery after a difficult 2016, which saw a sharp slowdown in growth and shocks to both the country’s currency and to inflation. The metical, which had been steadily depreciating in the first ten months of 2016, is now more stable, having strengthened by 28% against the US dollar in the last 9 months.
A strong monetary policy was key to this shift, which also helped inflation to slowly begin easing by mid-2017. Strengthening prices for coal, aluminum, and gas, a post-el Niño recovery in agriculture, and progress in the peace talks, could steer growth to 4.6% in 2017, and toward 7% by the end of the decade.
Inflation remains very high at 18%, with direct implications for Mozambican households, and for monetary policy seeking to ensure a stable price environment. Monetary policy has remained tight and has supported a significant adjustment in the external sector.
Mozambican vehicles market is still extremely weak and in the 2017 fell down for the third year in a row, losing almost two-third of 2015 volume. Indeed, when the market had posted the all-time record in 2015 with 7.286 sales, nobody would expect it down at the current 2.478 units.
The competitive landscape is dominated by Toyota with 425 sales (-41.4%). However, its market share is 17.2% at one of lowest level in CEntral and South Africa. Indeed, several players are active in the country, but the recent unexpected sharp crisis have reduced the single brands sales at minimum terms.
Tables with sales figures
In the tables below we report sales for Top Brands