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Motorcycles Penetrate the African Market

The continent’s two-wheeler market is projected to cross US$10 billion by 2022 owing to population, rising urbanisation and absence of reliable public transportation system in most of the African countries. The requirement for last-mile connectivity solutions presents opportunities primarily due to the relatively low penetration of two-wheelers vis-à-vis the total population of the continent. The African auto market’s steady growth is supported by growing employment, improving urban infrastructure and the ability of Asian manufacturers to supply cost-efficient vehicles that are relatively low in maintenance while offering higher mileage. African countries such as Kenya, Nigeria and Tanzania have seen significant migration towards Indian two-wheeler brands. The spurt in growth is particularly prevalent in Kenya, where the government has extended tax waivers to both the imports of motorcycles and to local assembly plants. Indian manufacturers are poised to meet this demand with a wide range of offerings. They are also expanding their network in the African market to offer sustainable mobility solutions to all commuters. The growth of this sector is good news for Africa as it would lead to job creation and increase employment opportunities.

SOURCE: FORBES AFRICA

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