Tanzanian Vehicles Market in 2025 posts steady growth. Full-year figures grew by 28.2%, continuing on last year’s positive trend. While Toyota was still the leader, Jetour reported most impressive gains, increasing its share in the country.
Economic Environment
In 2025, Tanzania’s economy is expected to maintain strong growth momentum, building on solid performance in 2024, when GDP expanded by about 5.6%, with similar growth projected for the full year and into 2025. Economic expansion is being supported by macroeconomic stability, with inflation remaining contained at around 3.1%, strong export performance, reaching USD 16.1 billion driven by tourism, gold, and agriculture, and rising investment activity. Under President Samia’s administration, Tanzania has seen a sharp acceleration in investment, with more than 2,000 projects registered since 2021, creating over half a million jobs, and the government is targeting USD 15 billion in new investments in 2025, particularly in manufacturing, clean energy, transport, mining, agriculture, and services. Structural reforms aimed at improving the business climate, including streamlining investment facilitation, strengthening capital markets institutions, and upgrading infrastructure, are reinforcing investor confidence. At the sectoral level, mining, agriculture, energy, and infrastructure are set to play a larger role in driving growth, supported by new financing arrangements, major rail and energy projects, and expanded electrification plans. Overall, Tanzania’s outlook for 2025 remains positive, anchored in strong domestic demand, regional market access, and an increasingly supportive policy environment for private-sector-led growth.
Automotive Industry Trend and Outlook
Tanzania’s Vehicle Market in 2025 continues to experience momentum, as full-year figures rose by 28.2%. After a positive performance in H1, when it peaked at +23.7% in February, it mantained the trend throughout Q3 and Q4.
Brand-wise, the leader Toyota grew 26.4% with a share of 27.7%, followed in 2nd by Isuzu, up 38.3%, and in 3rd by Ford, up 18.2%. Jetour was the standout brand, climbing up 16 spots in 5th.
Medium-Term Market Trend
The new light vehicle market in Tanzania has remained below 3,000 annual units in recent years, still heavily impacted by the widespread availability of imported used vehicles. However, signs suggest that this trend may begin to reverse in the future.
Over the past decade, the market began with 3,165 units sold in 2014, but then declined for two consecutive years, falling to 2,039 units in 2016—a 15.2% drop. A brief recovery followed, with sales climbing to 2,361 units by 2018.
The global COVID-19 pandemic in 2020 triggered a sharp collapse across automotive markets worldwide, and Tanzania was no exception. Vehicle sales fell by 20%, dropping below the 2,000-unit threshold for the first time since 2014, with just 1,889 units sold.
Sales remained under that mark in subsequent years, fluctuating modestly, up 4.1% in 2022 before contracting again in 2023 to 1,921 units. However, in 2024, the market showed impressive momentum, growing 45.8% and moving much closer once again to the 3,000-unit threshold.
