Nigeria Makes The Cut as Top 4 Biggest Car Manufacturing Countries in Africa are Revealed
- Africa is home to some car-making companies which keep the continent on the global stage but needing a lot of work
- South Africa leads in the list of countries with the best-developed automobile industry in Africa
- Nigeria follows with many auto companies jostling to enter the marker populated by over 200 million people
Despite Sub-Saharan Africa being the least performing region in the world regarding car manufacturing, it still has some good fundamentals.
A report by Business Insider which cited a recent report by Fitch Solutions says that Africa is the least attractive in the world in its Autos Production Risk/Reward Index (BRI), with a score of 38.4 out of a potential 100. Africa continues to greatly perform below par with an average of 50.0. Highlighting the limited rewards and risks present on the continent.
Source: Getty Images
According to Insider, the report recognised profitable fundamentals that present an opportunity for the continent to grow its automobile industry and go on to become a strong player in the long run. The reasons for the underperformance include low labour costs and supportive automobile policies by governments on the continent.
Here are the countries in Africa leading in car manufacturing:
South Africa has the best automobile industry in Africa
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South Africa: The rainbow country currently has one of the most developed automobile industry on the continent and is the most attractive automobile market. South Africa has a more diversified set of vehicle makers, as well as a larger number of auto component makers in Africa. Other factors such as the country's good autos policies and a favourable competitive landscape have contributed to its growing auto industry.
Innoson Motors keeps Nigeria on the map
Nigeria: Coming in second place is Nigeria, Africa's largest economy by GDP. According to Fitch Solutions, "Nigeria's large driving-age population remains a key appeal for further investment into the country".
A lot of car manufacturing companies are making inroads into the country which uses 80 per cent of used vehicles, spending about N601.5 billion importing vehicles into the country.
Presently, the local car manufacturer, Innoson Motors based in the southeastern part of the country, is a leading car maker.
However, reports have emerged recently of another car manufacturer, Ingrace entering the space.
Another company begins vehicle manufacturing plant in Enugu
Legit.ng reported that another vehicle manufacturing company has started vehicle making in Enugu, like the famous Innoson Motors.
The company, Ingrace Motors was praised by the Enugu State government for promoting indigenously made vehicles in Nigeria.
The Chief Executive Officer of Ingrace, Chinedu Onu, displayed the company’s brands and donated one of the vehicles to the Enugu State government recently to assess their quality, flexibility and strength.
Source: Legit.ng
