Home Business Africa: Volkswagen, BMW and Mercedes Benz – German Carmakers See Huge Potential in African Market

Africa: Volkswagen, BMW and Mercedes Benz – German Carmakers See Huge Potential in African Market

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In 2019 nearly 870,000 new passenger cars were sold in Africa, 62,000 of which were exported directly from Germany to Africa. However, South Africa remained the single most important market taking up nearly half of all German exports.

On the production side, the continent as a whole produced around 787,000 passenger car with 349,000 or 44% of these units manufactured in South Africa. German carmakers based in South Africa produced 317,000 passenger cars in 2019 indicating that just over 90% of all passenger cars manufactured in South Africa is done by German carmakers.

As a result, German automotive original equipment manufacturers (OEMs) see the African continent as a combined market with enormous potential future growth. Building on this assessment, the German Association of the Automotive Industry (VDA) has just joined hands with the African Association of Automotive Manufacturers as part of the PartnerAfrica project promoted by the German Government.

President of the German automotive association, Hildegard Müller, said “We highly appreciate our partnership with AAAM as the VDA intends to increase its involvement in Africa. With the joint project, VDA and AAAM are pursuing the goal of creating improved conditions for a flourishing automotive industry on the African continent, in order to increase economic growth and welfare in Africa and enable German as well as African member companies to participate in market growth and foster win-win trade and investments between Europe and Africa.”

“This commitment of the VDA and AAAM is a significant contribution to growth and prosperity in Africa, supported by the investments of car manufacturers and suppliers on this emerging continent,” she continued.