Africa’s automotive market is recording its strongest rebound in years as rising local production, easing credit conditions and the influx of affordable Chinese vehicles push new cars back onto roads across the continent.
Morocco has emerged as Africa’s largest vehicle producer after manufacturing over one million units in 2025, overtaking South Africa which produced nearly 600,000 vehicles within the same period, marking a significant shift in the continent’s industrial landscape.
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The renewed growth follows years of supply shortages, rising vehicle prices and delayed consumer purchases, with manufacturers increasingly assembling vehicles closer to African markets.
Data indicates that production hubs in South Africa, Morocco and Kenya are expanding operations, while Chinese automakers continue to gain market share through competitively priced, feature-rich models.
Research projects Africa’s automotive market to grow from $21.55 billion in 2025 to $22.63 billion in 2026, with long-term estimates placing the market value at $28.93 billion by 2031.
The report attributes the growth to rising urban middle-class spending, expanded Chinese Completely Knocked Down and Semi-Knocked Down investments, AfCFTA tariff liberalisation and the rapid expansion of ride-hailing and delivery fleets across major African cities.
