Zambia’s Auto market in 2022 totaled 1,334 sales, a 6.7% increase from the previous year. The downtrend set in Q2 and Q3 was offset by a strong growth in Q1 and Q4.
Market Trend and Outlook
The Zambian vehicle market in 2022 totaled 1,334 sales, a 6.7% increase from the previous year. The downtrend set in Q2 and Q3 was offset by a strong growth in Q1 and Q4.
Looking at cumulative data from 2022 brand-wise, this year the leader Toyota gained 8.9% while maintaining 47.5% market share, followed by Tata down 0.8% with just 9.8% share. Isuzu maintained 3rd spot with a 7.0% increase compared to 2021 and 9.2% market share.
Medium-Term Market Trend
The new vehicle market in recent years have shown a trend not correlated with the official economic index, growing when the economy was suffering and falling when the economy was recovering. This unusual correlation with the domestic economy is probably depending on the strong import of used vehicles (near 90% of total new vehicles registered each year). When the economy pushes up the demand for vehicles, people buy more vehicles in the low price range (used) while when purchase power is limited, only the upper class and government agencies keep purchasing vehicles.
After three consecutive years of growth, in 2019 the market fell. Indeed, Full-year registrations have been 4,466, down 9.9%.
Due to the COVID-19 Pandemic full-Year sales for 2020 have been 1,908, reporting a decline of 57.3% compared to 2019.
In 2021 the year started positively for the Zambian market, in fact, in Q1 495 units have been sold, reporting a 8.6% increase in sales compared to Q1 2020, and in Q2 growth slowed down, reporting a 2.7% increase in sales with 464 units sold.
In Q3 sales started dropping 20.5% with 368 units sold, and in Q4 kept dropping 30.2% with 375 units sold.
Indeed, full-Year sales for 2021 have been 1,702, reporting a 10.8% decrease compared to 2020.