Tanzania is an East African country with the most promising and fastest-growing automobile markets. The geographic advantage, availability of labor, government support, and research and development efforts influence the industry. Thus, the new vehicles market and imported used vehicles are highly demanded.
Worldwide, automobiles have a strong demand for automobiles. The case is the same in Tanzania too. Thus, many domestic and foreign automobile manufacturers plan to expand their production facilities in Tanzania.
Additionally, the country’s government has also prioritized improving and ensuring the development of the automotive segment. It can turn into a revenue generator while boosting the flow of FDIs.
In 2021, the first quarter of the automobile market indicated a positive performance with sales of 550 units. As compared to the previous quarter, the sales increased by 2.6%. Read on if you want to further know about the secondhand car dealers in Tanzania and its automotive industry.
The Tanzanian Automotive Industry – An Introduction
Like other international markets, the Tanzanian market also has a high demand for Japanese used cars. Thus, the automobile industry is growing. Thus, it provides different automotive companies wish to enter the market and avail of new opportunities.
Every year, second-hand car dealers in Tanzania import many used cars. The process is simple, and the regulations support the overall import.
Economic Perspective
The overall economic outlook of the country is positive. As a result, the household purchasing power is higher. Thus, the current market analysis indicates that automobile sales will increase in the coming years. Also, the economists predict a surge in demand and sales of vehicles.
With time, new players have entered the Tanzanian automotive market. On an industrial level, the low price vehicle segment and used vehicle segment are overgrowing rapidly. These are experiencing a constant increase in demand and sales. Also, light commercial vehicles and passenger cars are witnessing steady growth among these.
Buyer’s Segments
These days, middle-class people are majorly involved in buying used and affordable vehicles. The cost-effective model implemented by the major players has supported the middle-class segment in many ways.
Along with this, the automakers and auto dealers are offering strong customer support and licensed vehicles. They are also ensuring the availability of cheap spare parts.
Other than this, the overall competition in the Tanzania automotive market is intensifying from year to year. With the entry and launch of new models and brands, people have more choices.
Moreover, since the COVID-19 outbreak, some drastic changes have hit the world. With these changes, people are looking for more cheap and reliable options.
Therefore, like in other countries, the demand for Japanese vehicles grows in Tanzania. As a result, the second-hand car dealers in Tanzania are constantly working to make used vehicles available for customers. They are importing second-hand cars to meet the demands and ensure the availability of reliable and durable vehicles at cheap rates.
Tanzania’s Auto Market Strategy Analysis
Tanzania has commendably maintained a steady growth and economic performance in the past decades. Its inflation rate and poverty rate are also in control.
With this, the middle-class people enjoy higher purchasing power. Additionally, the old manufacturers and the worldwide development in the auto industry have reshaped the auto industry in Tanzania.
Changes in the Market
Some noticeable changes were observed in the automotive industry in the last decade. The advancement in technology and new consumer behaviors strongly influence automobile demand and success.
Similarly, in Tanzania, the demand for sustainability and eco-friendly vehicles increased. Vehicle electrification and the increasing restrictions on carbon emission have influenced sales and growth.
Among all these, COVID-19 has become a catalyst for transformational developments. It not only accelerated some dominant trends but also influenced the need for vehicles.
Moreover, massive disruption was identified in the supply chains as production halted and the demand started declining in countries. Therefore, it brought transformation in the market.
Market Competition
Today, Tanzania has become one of the key markets in the East African region. Thus, you can divide the market into three categories, new, refurbished, and used vehicles.
Among all, the demand for pick-up vehicles is the highest. It has captured more than 60% of the market share. In this segment, Japanese vehicles are leading.
Therefore, second-hand car dealers in Tanzania constantly import used Japanese pick-up vehicles. Currently, Nissan, Ford, and Toyota vehicles are dominating the industry. However, Toyota Hilux is leading the segment.
Additionally, the analysis of the Tanzanian market shows that the hatchback and station wagons are also high in demand. It’s a price-sensitive market, which indicates a higher demand for used vehicles.
Moreover, Nissan, Land Rover, and Toyota are leading the markets in the SUV segment. All the C and D body types are dominating. Among these, Maruti vehicles are leading.
In the market, you can find a refurbished SUV model for around $12,000. Comparatively, a new one will cost double this price. It’s an average for all the key models available in the market.
Second-Hand Car Dealers in Tanzania
You’ll find many reliable and authentic second-hand cars dealers in Tanzania in the automotive market. For instance, SBT Japan is one of the leading dealers that ensure highly durable and reliable second-hand Japanese cars. These vehicles are thoroughly inspected and tested before the trade.
If you’re looking for second-hand cars dealers in Tanzania, it’s best to deal with the authentic ones. Purchasing a car involves a lot of money. So, it’s better to avoid risks and buy a reliable and durable vehicle that offers comfort, safety, and great features.
Buying a car is a long-term purchase. People buy vehicles that can stay with them for at least 5 to 10 years. Hence, even if you opt for a second-hand car, it’s better to look for the best options. You need to compare and evaluate the options available at the second-hand cars dealers in Tanzania before you choose. Through this, you can get a car that suits your needs.
Final Thoughts
Automobiles have become a necessity for people these days. It’s not only a source to commute to work or place of study but also helps in running errands, seeing friends, and enjoying with family and friends.
Further, it’s one of the country’s major economic sectors generating FDIs and revenue flow.
The overall growth and development of the automotive industry in Tanzania are increasing. The COVID-19 outbreak affected the market, but now it is regaining its position.
Recently, a surge was observed in demand for second-hand vehicles. Thus, second-hand cars dealers in Tanzania import Japanese used vehicles that are high in demand to meet consumer needs. It has helped in improving sales and achieving a higher market share.
