Income And Heavy Industry Growth Offer Widespread Opportunities

BMI sees favourable conditions for growth in both passenger cars and commercial vehicles in Mozambique. Driving passenger car sales over the next five years will be a burgeoning middle class and higher levels of disposable income.

Meanwhile, the commercial vehicles (CV) segment is set to benefit from Mozambique's infrastructure sector, which we believe holds one of the strongest growth outlooks across the Sub-Saharan Africa (SSA) region. Investment in mining and more recently gas exploration is necessitating the construction of support infrastructure, with an estimated USD30bn in projects in the pipeline. Beyond industrial demand for commercial vehicles, BMI also expects to see an uptick in demand from the urban transportation sector.

Such is the demand for vehicles in Mozambique that the country's fleet size has grown by over 832% between 1990 and 2012, to 487,000 units, according to estimates from the National Land Transport Institute (INTT). In terms of segments, light vehicles (comprising of passenger cars and light commercial vehicles) accounts for nearly 63% of the total fleet, followed by a 21% share For heavy vehicles. The remainder is made up of tractors, trailers and motorcycles.

Equal Segment Growth
Mozambique Vehicle Sales By Segment

Income And Heavy Industry Growth Offer Widespread Opportunities

BMI sees favourable conditions for growth in both passenger cars and commercial vehicles in Mozambique. Driving passenger car sales over the next five years will be a burgeoning middle class and higher levels of disposable income.

Meanwhile, the commercial vehicles (CV) segment is set to benefit from Mozambique's infrastructure sector, which we believe holds one of the strongest growth outlooks across the Sub-Saharan Africa (SSA) region. Investment in mining and more recently gas exploration is necessitating the construction of support infrastructure, with an estimated USD30bn in projects in the pipeline. Beyond industrial demand for commercial vehicles, BMI also expects to see an uptick in demand from the urban transportation sector.

Equal Segment Growth
Mozambique Vehicle Sales By Segment

Such is the demand for vehicles in Mozambique that the country's fleet size has grown by over 832% between 1990 and 2012, to 487,000 units, according to estimates from the National Land Transport Institute (INTT). In terms of segments, light vehicles (comprising of passenger cars and light commercial vehicles) accounts for nearly 63% of the total fleet, followed by a 21% share For heavy vehicles. The remainder is made up of tractors, trailers and motorcycles.

In total, we forecast total new vehicle sales to reach 35,500 units in 2018, almost double the levels seen in 2012. CV sales will continue to account for the lion's share of new vehicle sales.

There is also optimism in the autos production segment, with 2013 becoming a landmark year for the industry. Chinese company China Tong Jian Investment (CTJI) officially opened and began production at a US$150mn facility in Matola in February 2013, and began tire production the following month. The significant investment meant Mozambique now joins the rank of the few coveted African markets to boast of local autos manufacturing.

×

Enter your details to read the full article

By submitting this form you are acknowledging that you have read and understood our Privacy Policy.

×

REQUEST A DEMO

By submitting this form you are acknowledging that you have read and understood our Privacy Policy.

Thank you for your interest

A member of the team will be in touch shortly to arrange a convenient time for your free demonstration and trial. If your enquiry is urgent, please email our Client Services team here.