Africa (Kenya, Nigeria, Egypt, Morocco etc) Motorcycle Market Analysis

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Africa Two-Wheelers Market Outlook
Africa Two-Wheelers Market Outlook 2024
Opportunity Growth Analysis, 2016-2024
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Africa Two-Wheelers Market Outlook
Global Two-Wheelers Market Share(), By
Region-2016-2024
Africa Two-Wheelers Market Size USD (Billion).
2016-2024
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Sample
Source Goldstein Research
Source Goldstein Research
In 2016, Motorcycles accounted for the highest
market share XX in Africa Two-Wheelers market
With XX share in 2016, Asia Pacific dominated
the Global Two-Wheelers market
Africa Two-Wheelers Market Share (), By Fuel
Type- 2016
Africa Two-Wheelers Market Share (), By Vehicles
Type-2016
Africa Two-Wheelers Market Share(), By
Regions-2016
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Africa Two-Wheelers Market Outlook
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• In 2016, Sub- Saharan Africa recorded XX of
  vehicle ownership per capita compared with XX in
  the United States, XX in Europe, and X in China
• XX million vehicle in use in Africa. Annual
  vehicle fleet growth rate in Kenya and Ethiopia
  is XX and XX respectively
• More than XX of vehicles imported into Kenya are
  used (2016). In Nigeria internet bases car sales
  account for XX of all car sales (2015).
• Africa imports X times more automotive products
  than it exports. In 2016, automotive imports
  valued USD XX billion and exports totaled USD XX
  billion.
• Due to the rise of income levels in many African
  countries and the emergence of a middle class,
  Goldstein Research regards the continent as the
  final frontier for the global automotive
  industry. Given Africas population size and its
  positive economic outlook, automotive companies
  will be able to gain a competitive advantage by
  adopting a medium- to long-term view towards the
  continent.
• In 2016, approximately XX million new vehicles
  were sold or registered across Africa. South
  Africa, Egypt, Algeria and Morocco all
  countries with established and rapidly developing
  automotive industries together accounted for
  more than XX of total new vehicle sales in 2016.
• South Africa, Egypt, Morocco, and Algeria have
  sizeable automotive assembly and manufacturing
  sectors. Despite these relatively well
  established automotive hubs in South Africa and
  countries in North Africa, fewer than XXX 000
  vehicles were produced on the continent
  accounting for just over XX of global production
  in 2016. The rest of the continent is mainly a
  retail dominated automotive market.
• As a result the sector has been an attractive
  option for policymakers seeking to boost
  manufacturing employment, diversify export
  revenue sources and ultimately industrialise
  their economies.

Favorable Demographics
Government Spending on Infrastructure
Development
Sample
Inefficient Public Transport
Growing Personal Disposable Income
Africa Two-Wheelers Market Size (Million Units)
South Africa
Algeria
Egypt
XX Million
2016
XX Million
XX Million
2024
XX Million
XX Million
XX Million
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Africa Two-Wheelers Market Outlook
Vehicles in use () in Africa, 2016
Two Wheelers in use () in Africa, 2016
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2016
Sample
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Source Goldstein Research
Annual vehicle registrations (Thousand Units) in
Africa, 2016-2016
Source Goldstein Research
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Africa Two-Wheelers Market Outlook
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Major Asian Two Wheelers Exporting Countries to
Africa (), 2016
Major African Two Wheelers Importing Countries
(), 2016
Sample
2016
Source Goldstein Research
Source Goldstein Research
Total Production (Thousand Units) of Two Wheelers
By Asian Countries and Export (Thousand Units) to
African Countries- 2016-2024
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• Young Population and Rising Middle-Class Income
• That rising consumer demand, allied to African
  governments willingness to offer generous terms
  to would-be manufacturers, means that companies
  are being doubly incentivised to enter new
  markets on the African continent. But while the
  prize on offer appears great, the risks of moving
  too soon with expensive capital investments
  remain.
• Ethiopia was Africas fastest growing economy in
  2015 and has the continents second largest
  population. Ethiopias automotive potential is
  underpinned by the state-driven economy and a
  government that is geared toward
  industrialisation, which makes it the African
  economy that is most similar and arguably likely
  to replicate the development successes of China
  of the mid-1980s onwards
• Kenya is the largest and wealthiest economy in
  East Africa and plays an important regional role.
  Kenyas sizeable middle class, progressive
  business environment, regional market access and
  history of automotive assembly positions Kenya
  motorcycle market as a potential East African
  automotive hub.
• Nigeria, as Africas largest economy, presents a
  sizeable untapped automotive market with the
  continents largest population and relatively
  high GDP per capita. For this reason, Nigeria has
  generated the most interest among automotive
  players as a future market in Africa. Nigeria
  also has a legacy of having sizeable assembly
  plants.

Comparison of Asian and sub-Saharan African (SSA)
markets, production and trade,
Sample
China sub-Saharan Africa
Passenger Car Exports XXX XX
Commercial Vehicle and Bus Imports XXX XX
Commercial Vehicle and Bus Exports XXX XX
Motorcycle Imports XXX XX
Motorcycle Exports XXX XX
Motorcycle and Bike Parts Imports XXX XX
Motorcycle and Bike Parts Exports XXX XX
Source Goldstein Research

• Impact Analysis-
• As indicated above, the market for vehicles in
  SSA is growing very rapidly. While it is
  currently small, the region will become a
  significant global market over the next decade.
  This growing demand is for the most part being
  met by imports
• Imports have risen sharply and XX percent of
  vehicles sold in 2016 were locally assembled,
  down from XX percent in 2004.

7
Sample
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• Grey Imports of Second-Hand Vehicles
• According to industry players, the overall new
  and second-hand market combined ranges between XX
  000 and XX million units per year. Smuggling,
  grey imports of second-hand vehicles and the lack
  of reliable data however, make the exact size of
  Nigeria motorcycle market and fleet size
  difficult to quantify. Challenges concerning the
  licensing and identification of vehicles further
  contribute to this difficulty
• Imported second-hand vehicles, so-called
  tokunbos, dominate the Nigerian vehicle market as
  only a small segment of society is able to afford
  new vehicles. A representative of a leading
  automotive firm estimates that a mere XX of the
  population is able to afford new vehicles given
  the current economic and financing environment.
  While commercial banks offer vehicle finance,
  accessing these credit facilities has become
  increasingly unattractive to individual consumers
  as credit facilities are provided at interest
  rates above XX per annum and require at least a
  XX down-payment
• In the absence of affordable finance solutions,
  secondhand vehicles remain the more attractive
  option for private vehicle buyers. According to a
  representative of a leading automotive company,
  second-hand passenger vehicles accounted for XX
  of sales in 2016. The share of tokunbos in the
  commercial vehicle market is even larger,
  reaching up to XX of the market according to a
  leading commercial vehicle manufacturer.

China and Indias Two Wheeler Exports (Million
Units) by Region- 2017
Sales of Motorcycles and Scooters in Sub-Sahara
African Countries 2015-2016
COUNTRY 2016 2015 Variance ()
Nigeria XX Thousand XX Thousand X
Ethiopia XX Thousand XX Thousand X
Kenya XX Thousand XX Thousand XX
Zambia XX Thousand XX Thousand XX
Rwanda XX Thousand XX Thousand X
TOTAL XX Thousand XX Thousand X
Source Goldstein Research
Source Goldstein Research
Impact on Africa Two-Wheelers Market

• Impact Analysis-
• Due to the limited accessibility to and expensive
  financing of vehicles, new vehicles remain out of
  reach for most Nigerians and the largest share of
  current vehicle demand comes from the business
  community
• Corporate buyers account for approximately 70 of
  overall new vehicle purchases, indicating the
  suppressed demand from private buyers,66 arguably
  the market segment with the largest growth
  potential.

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Africa Two-Wheelers Market Share (), By Vehicle
Type, 2016-2024

• Despite the positive forecasts, industry players
  are less bullish in their short-term outlook.
  Much of 2015 has seen producers subject to a
  range of broader macroeconomic challenges,
  including an energy crisis, a currency
  devaluation and a dollar shortage that is
  hampering output and inflating the cost of
  production.
• Given that the industry imports as much as XX
  of the required components, this has had a
  substantial impact on the cost of production and
  subsequently the selling price of vehicles.
  Profit margins are low, and with the added
  pressures, losses are inevitable,
• To date, new vehicle sales on the continent as
  well as the local production and assembly of
  vehicles have been limited by various factors
  such as a small market size, lower purchasing
  power, a less competitive operating environment
  and an insufficient policy environment.

Sample
Source Goldstein Research
Africa Two-Wheelers Market Y-O-Y Growth, By
Vehicle Type 2016-2024
Source Goldstein Research
Africa Two-Wheelers Market Size (USD Billion), By
Product Type-2016-2024
Source Goldstein Research
9
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Africa Two-Wheelers Market Size (USD Billion), By
Motorcycles, 2016-2024

• Many potential new drivers in the
• region still own two-wheelers, with motorcycle
  penetration rates at over XX in Egypt, Morocco,
  Nigeria and South Africa.
• At present the vehicles are assembled from
  imported SKD kits with a limited degree of local
  inputs-sourcing due to the lack of a reliable and
  adequate domestic supplier base. While current
  assembly figures are low, with Peugeot Automobile
  Nigeria recording the largest number of vehicles
  assembled in 2015 with 400 units, the automotive
  companies aim at increasing their annual output
  in order to capitalize on the long-term growth
  prospects of the Nigerian market.
• Goldstein views Africas automotive sector as the
  final frontier for automotive growth. The
  viability of automotive assembly or production in
  Africa is regarded as limited in the short term,
  but has largely untapped potential in the long
  term.

Sample
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Africa Two-Wheelers Market Y-O-Y Growth, By
Motorcycles 2016-2024
Source Goldstein Research
Motorcycle Market Growth in Different Regions,
2012-2016
Source Goldstein Research
10
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North African Two-Wheelers Market Size (USD
Billion), Compound Annual Growth Rate (), Y-O-Y
Growth Rate (), 2016-2024
Sample
Source Goldstein Research
While there has been political and civil conflict
in North Africa in recent years, the regions
geographical position and business opportunities
makes it an attractive area for foreign investors
and local business expansion. North Africa in
general is a great place to invest for the long
term, especially large-sized industries that are
always looking to expand in Africa, starting from
the north Its positioning also offers a link
between the African market and Europe, as well as
West Asia. However, the biggest challenge facing
many multinational businesses is the limitations
to expansion and allocating investments, mostly
for medium-size businesses that struggle with
several poor public and government conditions
which cut off their ability to launch new
businesses in these regions.
Motorcycles Import (Thousand Units) in Northern
Africa
Source Goldstein Research
One of the reasons for the success of Indian
manufacturers in Africa is due to the fact that
conditions in the two regions are relatively
similar. Typical African markets demand durable,
cost effective transport solutions, and here new
manufacturers groomed in similarly trying
emerging economy environments are likely to
excel. Indias strength in Africa has
consistently been the ability of its home-grown
multinational corporations to leverage domestic
success and adaptability to similarly challenging
emerging African economies.
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Africa Two-Wheelers Market Attractiveness-By
Country, 2016-2024
CAGR ()
Market Size (USD Million)
Sample
Source Goldstein Research
According to the above graph, Southern and
Western Two-Wheelers market is anticipated to be
the most attractive market across the region, for
new entrants looking to enter in the market,
existing players looking for business expansion
and investors seeking investment opportunities
over the forecast period i.e. 2016-2024 To
penetrate fertile geographies, two wheeler
manufacturers must work with top-level
distributors. These distributors will eventually
have to devise sound marketing strategies and
persuasive selling points for two wheelers. A
winning policy will include innovative and
low-cost products for South Aferican markets,
along with high configuration design and robust
aftersales service. Automobile businesses must
also make the investment necessary to produce a
motorcycle model suitable for each geography.
Africa Two-Wheelers Market BPS Analysis- By
Regions, 2016-2024
Source Goldstein Research
12
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Honda Motors (Company Overview Business
Strategy)
Founded 1946
Website www. global.honda.com
Employees 208,399
Headquarters Japan
Company Overview
Major Products
Automobiles
Motorcycles
Power Products
Honda Jet

• Honda Motor Company, Ltd. is a Japanese public
  multinational conglomerate corporation primarily
  known as a manufacturer of automobiles, aircraft,
  motorcycles, and power equipment.
• Honda has been the world's largest motorcycle
  manufacturer since 1959, as well as the world's
  largest manufacturer of internal combustion
  engines measured by volume, producing more than
  14 million internal combustion engines each year.
• Aside from their core automobile and motorcycle
  businesses, Honda also manufactures garden
  equipment, marine engines, personal watercraft
  and power generators, and other products.
• Honda is headquartered in Minato, Tokyo, Japan.
  Their shares trade on the Tokyo Stock Exchange
  and the New York Stock Exchange, as well as
  exchanges in Osaka, Nagoya, Sapporo, Kyoto,
  Fukuoka, London, Paris and Switzerland.

Sample
Business Strategy

• Enterprise Strategy The Mission Statement of
  Honda is try to maintain a global point of view,
  with the dedication to supply the highest quality
  products at a reasonable price for worldwide
  customer satisfaction.
• Corporate Strategy Honda's portfolio includes
  four businesses Automobiles business,
  Motorcycles business, Power business and honda
  jets. Even though stepping into Automobile
  industry rather late at 1963, Honda quickly leads
  the industry with characteristics like superior
  fuel economy, optimum safety, and driving
  pleasure. Honda's sales and production in this
  industry prove successful steadily not just in
  U.S. but also in many regions worldwide.
• Business Strategy One of the proudest things
  about Honda is its RD system. With the
  systematic way of resembling, focus on
  durability, reliability and basic performance to
  establish a creative and innovative technical
  foundation. Also, Honda has established
  independent local operation around the world and
  pushed local autonomy and proactive efforts to
  localize the needs regional with mutual
  understanding.