Auto Parts

Abdul Hadi Trading Est.

Established in 1991, Abdul Hadi Trading Est. has emerged as one of the leading suppliers of automotive tyres of Indian and Chinese origin, Korean tubes and batteries and spare parts. The company has a wide range of products to meet the varying demands of its vast clientele all across Africa.

Apart from automotive tyres, tubes and batteries, Abdul Hadi Trading Est., also deals in spare parts for Japanese, Korean and German cars on indenting basis. The brands that it can supply include NPW Water Pumps, Daewha & Kyosan Fuel Pumps, Tokico hydraulic brake and clutch parts, 555 suspension parts, Napco carburetor kits, Culture king pin kits, etc. The company can also supply Genuine Toyota, Nissan, Mazda, Mitsubishi, Honda, Kia, Hyundai and Mercedes Benz spare parts.

abdul hadi tyres Customers looking for a reliable source for tyres, inner tubes, batteries and spare parts, will be impressed by the company's inventory. Abdul Hadi Trading Est. imports a wide range of commercial light and heavy truck tyres, agriculture tyres, industrial tyres and OTR tyres of Chinese origin to cater to the growing demand from the local as well as the overseas markets.

Some of the major Chinese brands available at Abdul Hadi Trading Est. include Double Happiness, Taishan, Triangle, Yellow Sea, Henan, Advance, Lubao, Hai Tuo, Ling Long, Armour, Rongda, Luhe, Heshan and Whale.

tyre logos abdul hadi trading Abdul Hadi Trading Est. also has a wide range of solid and pneumatic forklift tires of Indian and Chinese origin. Automotive inner tubes available include Heung Ah and Dong Ah of Korean origin. The company also has Solite batteries of Korean origin for various automotive applications.

As a specialist supplier of these products, Abdul Hadi Trading Est. exports most of its imports to various African destinations like, Rwanda, Kenya, Tanzania, Uganda, Ghana, Cameroon and Nigeria.

The company's expansive product range makes it possible for customers to source all their requirements from one source. This has helped the company to provide both convenience and competitive prices to its customers.

Competitive prices offered by Abdul Hadi Trading Est. has greatly helped the company to establish its products in emerging markets of Africa. The company is now looking to broaden its customer base in Africa and other emerging markets across the globe. Abdul Hadi is a regular supplier of tyres and spare parts to many African countries.

tyre dubai Abdul Hadi Trading Est. has been able to build a loyal and satisfied clientele by providing high quality products at an affordable price, thereby offering value for money products. Ready availability of products backed by a reliable and efficient distribution network has further helped the company in expanding its client base.

With such a comprehensive product range and an efficient and well-knit distribution network, Abdul Hadi Trading has been able to establish itself as one of the leading suppliers of automotive tyres, tubes and battteries. The company is now looking to broaden its client base not only in Africa but also in the Middle East, GCC and CIS countries.

Going by the company's past performance and history, it seems an inevitability that Abdul Hadi Establishment will be able to penetrate new markets and expand its client base in Africa by offering its clients unbeatable quality and price.

For further information contact

Abdul Hadi Trading Establishment
P.O. Box 25763, Dubai,
United Arab Emirates

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Market Reports

The Market for Auto Parts in Ghana

The market for auto parts in Ghana presents numerous opportunities. First and foremost, Ghana’s manufacturing industry has always been receiving good support from the local government. The encouragement and support of the Ghana government has enabled the country to emerge as one of the 40 fastest growing industrial production regions in the world. Ghana's impressive manufacturing industry currently accounts for a quarter of the country's GDP and is expected to account for more than 30% of the GDP by 2021. And the main driver for Ghana's booming manufacturing industry is the automobile industry. The automotive market in Ghana is diverse. It ranges from Original Equipment Manufacturers (OEMs) and component manufacturers, to dealerships and commercial vehicle manufacturers. Financial pressures, industry restructuring, changing consumer preferences, regulating issues, fluctuating fuel prices and the growing demand for more environmentally friendly vehicles are constantly transforming West Africa's automotive industry. The Ghanian automotive industry continues to adjust to market forces. The manufacturing level is being impacted by the increasing number of imported vehicles and the after affects of the global economic crisis, especially the uncertainty with regards to the European markets and the impact on local manufacturing. To survive and grow, automotive companies in Ghana must continuously develop and maintain customer relationships, achieve technical excellence and retain skilled labour pools, and manage significant risks. The automobile sector of Ghana has been a driver of growth of the country as it is one of the most visible sectors to receive foreign investment. Ghana is a multicultural and ethnically diverse West African nation and is the 9th largest African economy. On the Ibrahim Index of African Governance, Ghana ranks as the 7th best economy in Africa, which implies a relative safety of foreign investment in the region. Also, Ghana ranks relatively high in the ease of doing business index and also has an extremely high freedom of press rating, which makes it a good emerging market to invest in. Some of the popular car brands in the West Africa region are Toyota, Mercedes Benz, Mitsubishi, KIA, Nissan, Hyundai Volkswagen, Renault among others. AFRICAN AUTO PARTS INDUSTRY The African auto parts market for passenger vehicles is emerging as one of the most important re-export markets, growing more than 11 per cent year-on-year, and estimated to be worth US$14.68 billion in 2017 and based on the double-digit growth of demand in key Sub-Saharan countries, the value of the Africa’s auto parts market is likely to double by 2022. Countries such as Nigeria, Kenya, Uganda, Ghana, have witnessed double digit growth in demand of parts in the past five years. Focusing on the tremendous opportunities of doing business in the fast-emerging African market, there are currently more than 21.6 million cars on the continent’s roads which make up for nearly 70 per cent of spare parts consumption. There are five modes of automobile service business in Ghana, these are : New car dealers Independent garages/shops Specialty garages /shops Service stations or garages Fleet garages /shop However, the region still has its challenges. The African market is unstructured and the share of non-genuine parts is the biggest challenge to the automotive aftermarket in this region. Political issues, credit policies, and business sustainability related issues also impact the market, but these are mostly limited to Central Africa. Despite this the future outlook remained bright for those exporting to Africa, with the best opportunities existing in Kenya, Angola, Uganda, Nigeria and Ghana. Used engines are in great demand in many African countries which have a big market for re-conditioned automobiles. Most of the African buyers have substantial requirements for quantities of automotive batteries, tyres, spare parts, ball bearings, water pumps and a host of electronic goods. People prefer buying used spare parts because they are genuine and are often in good condition. Every spare parts outlet may not provide the full range of used parts of all car models but together the market is capable of providing nearly 90 per cent of such parts. The diversified range of used mechanical and body parts of cars and engines has brought this business parallel to genuine and non-genuine new spare parts businesses as it offers big variety at affordable prices. There has been an increasing demand for automobile spares, ball bearings and lubricants in the fast developing markets of Africa. The rapid growth of the middle class in many African countries has pushed demand for automobiles to an all-time high – in turn creating a growing market for all kinds of tyres: passenger car tyres, off-the-road tyres, industrial tyres, agricultural tyres, truck, bus and trailer tyres as well as motorcycle and bicycle tyres. The rising demand for tyres in Africa has led to stiff competition between tyre manufacturers from all across the world seeking to garner a major share of the market for tyres in the new and emerging African markets. Traditionally, European tyre manufactures had had a monopoly over the African markets and many European brands were top selling tyres in many African countries. However, in recent times, European tyre firms are beginning to lose ground to Chinese and other Asian brands in several African markets. The African countries are price-sensitive markets and prefer to import low-priced Chinese tyres rather than the expensive European and American brands. There is an equally strong market for sale and importation of used tyres in this region. Apart from Dunlop International the other three significant players in the African market for tyres are Continental, Bridgestone and Goodyear. Some of the major exporters of auto spare parts to Africa from Dubai include: Al Muqarram Auto Spare Parts Bagader Trading Est. BBG Trading VRB Trades FZE Zafco Trading Zeetex SPARE PARTS MARKET IN GHANA Currently most of the consumers in the automobile segment belong to the affluent class hence the automobile industry in Ghana presents massive opportunities for the future as the burgeoning middle class is largely untapped in the country. One of the major problems with Ghana that has been impeding the growth of the automobile sector is the lack of financial inclusion in the country. 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The rapid industrialisation currently sweeping across many African countries has resulted in an increased demand for capital goods such as machinery, lubricants, spare parts, ball bearings and other mechanical accessories. The automobile sector of Ghana has been a driver of growth of the country as it is one of the most visible sectors to receive foreign investment. Indian automobiles major Mahindra and Mahindra, has invested heavily in the country and has made it as a regional hub for the manufacture of its Sports Utility Vehicles. Ghana’s first Ghanaian carmaker Kantanka Automobile Company says after years of vigorous research and tests it was now determined to release into the global market strong, robust, durable and reliable cars. The manufacturing base in Accra can currently produce around 100 cars a month. On the Ibrahim Index of African Governance, Ghana ranks as the 7th best economy in Africa, which implies a relative safety of foreign investment in the region. Also, Ghana ranks relatively high in the ease of doing business index and also has an extremely high freedom of press rating, which makes it a good emerging market to invest in. Moving forward, automotive companies must look for new ways to address existing challenges, mitigate risks, and seize future opportunities, amidst increasingly aggressive competition and pricing pressures. While some may be tempted to focus on short-term success to the detriment of long-term profitability, a holistic approach can help automotive companies take a big-picture view to explore the appropriate paths forward. Africa Automotive Directory The African Automotive Directory compiled by Africa Business Pages has emerged as a helpful resource for those looking for buyers of automotive spare parts in Africa. The Africa Automotive Directory lists all major auto parts importers in 49 African countries and is available for immediate download in Excel format. This special directory is updated every six months is available for sale at the Africa Business Pages B2B portal at a nominal cost of US$350. The Africa Automotive Directory has helped many exporters, manufacturers and dealers of automotive spare parts connect with their business counterparts in the African markets and develop direct business relations and expand their sales and distribution network in key African markets.

Market Reports

CFAO Yamaha Assembly Plant in Nigeria

The CFAO YAMAHA assembly plant was officially opened in Lagos, Nigeria to assemble two motorcycle models: the Yamaha Crux and the Force X Royale, both destined for the Nigerian market. Located in the Amuwo Odofin industrial zone, the plant is expected to produce 70,000 units by 2018. A showroom will present other Yahama products such as outboard engines, personal watercrafts (WaveRunner), all terrain vehicles (ATV), generateurs and Yamalube lubricant products. In Nigeria, all of these products will be exclusively distributed by CFAO Yamaha Motor Nigeria Limited. The assembly plant and showroom inaugurated last Friday are the result of a partnership signed between CFAO and Yamaha at the end of 2014. This partnership aims at meeting demand from the Nigerian market and supporting the government’s drive to strengthen the country’s industrial base. According to Richard Bielle, Chairman of the Management Board of CFAO: “The strength of this partnership builds on Yamaha’s manufacturing expertise and CFAO’s sales expertise and vast distribution network. The inauguration of this plant celebrates CFAO’s strategic redeployment in Nigeria in our three business sectors: equipment & services, healthcare and consumer goods.” The assembly plant also houses the Yamaha Technical Academy, a training centre for technical professionals, and the Yamaha Riding Academy, a road safety awareness centre. About CFAO CFAO is a front-ranking specialized distributor and preferred partner of major international brands, serving the high-potential equipment & services, healthcare and consumer goods markets in Africa and the French overseas territories. The Group is active in 39 countries, including 34 African countries and 7 French Overseas Territories. It employed 12,370 people at end-2015. In 2015, CFAO generated consolidated revenue of €3,435.7 million and recorded recurring operating income of €269.2 million. CFAO is a 97.74%-owned subsidiary of TTC (Japan). CFAO is listed on NYSE Euronext Paris.

Market Reports

Ethiopia's Automotive Industry

Ethiopia is among Africa’s most impressive growth performers over the past decade averaging 10.9% annual growth between 2005 and 2022. With a GDP of US$112 billion in 2022 it is the ninth largest economy in Africa and the third largest in Eastern Africa. After Nigeria, the country is also home to the continent’s second largest population of 120 million people in 2022 and a forecasted 150 million in 2025. Undoubtedly, Ethiopia is a relatively untapped investment opportunity in Eastern Africa especially in the manufacturing sector. Ethiopia’s automotive market is dominated by second-hand imported vehicles – particularly commercial vehicles. Commercial vehicles were Ethiopia’s second most valuable import overall in 2022, worth US$875 million. On the other hand, commercial vehicles were also Ethiopia’s highest earning automotive export in 2022. This can largely be attributed to Bishoftu Automotive Industry (BAI), an automotive manufacturing and assembly company run by the Ethiopian military. BAI specialises in assembling, upgrading, overhauling and localising buses, pick-ups, SUVs, trucks and military equipment such as tanks and armoured personnel carriers (APCs). Military vehicles are largely for the use of the Ethiopian military and African Union peacekeeping missions while civilian vehicles are supplied to local customers such as state-owned transport providers. Small quantities of commercial vehicles have been exported to neighbouring Somaliland. Increasing Numbers Ethiopia has the lowest motorisation rate globally, with only two cars per 1,000 inhabitants in 2015. Recent reports estimate that in 2022 there were 210,000 vehicles in use in Ethiopia, of which 125,000 were passenger vehicles and 85,000 were commercial vehicles. Between 2005 and 2022, total vehicles in use grew at a CAGR of almost 2.4%. According to Ethiopia’s Ministry of Transport approximately 84% of the market is passenger vehicles while commercial vehicles make up 16%. Second-hand vehicles in Ethiopia tend to appreciate in value due to high import duties and limited supply of vehicles. As a result, second-hand vehicles dominate the market. Approximately 85% of vehicles are second-hand imports, of which almost 90% are Toyotas.These vehicles are imported primarily from the Gulf States, through the Port of Djibouti. Automotive Sales Although there is almost no publicly available reliable data on vehicle sales in Ethiopia. It is however estimated that 18,000 vehicles are brought into Ethiopia each year. The majority of these are second-hand vehicles. Each year, 2,000 new Toyotas and between 5,000 and 7,000 used Toyotas are imported. Clearly, Toyota controls approximately 65% of the total market (new and second-hand) due to its reputation as being reliable and inexpensive to maintain. The main drivers of new commercial vehicle sales are construction, agri-business and retail while passenger vehicle sales are driven by government (including diplomatic corps) purchases. Vehicle affordability is further locked up by prohibitively high vehicle taxes of sometimes more than 220% depending on engine size. As taxes in Ethiopia are cumulative, excise tax is calculated on the customs duty, surtax is charged on top of the excise tax, and customs duty and final VAT is calculated once the surtax, excise tax and customs duty have been added. Imported vehicles may cost as much as three times the retail price of the vehicle outside of the country. Commercial vehicles, such as pick-ups, vans and trucks, have a lower tax rate than vehicles for personal use. Relative disincentives exist vis-à-vis personal vehicles compared to commercial vehicles. Diplomats and foreign investors are allowed to import vehicles duty-free. The supply-depressing character of foreign exchange shortages contributes to imbalances in the market and drives up the market price of vehicles, thus also having a negative impact on the affordability of vehicles in the Ethiopian market. Production and Assembly The Ethiopian Investment Commission (EIC) reports that 31 foreign vehicle investment projects (largely Chinese projects but also someinvolvement of European companies) and 73 domestic vehicle assembly investment projects have been licensed since 1998. This means that a total of 104 companies have been licensed for vehicle assembly in the country over the past two decades. However, only a few of these are operational, with the vast majority licensed at the pre-implementation stage. During the past decade, a number of leading international automotive companies have carried out market scoping exercises to assess the viability of Ethiopia as an assembly hub. However, due to the limited market size, large-scale investments by these automotive firms have not yet materialised. Although a number of assemblers source some components such as tyres locally, Ethiopia has no defined local content requirement. A number of assemblers indicated that they are instructed that local content should be approximately 30% in order to qualify for the 30% tax incentive associated with all local manufacturing, but that no written agreement exists between assemblers and the state. Due to Ethiopia’s tax system, which subjects vehicles to tax depending on their engine size rather than age or origin, it is often cheaper to import a second-hand vehicle with a smaller engine size than it is to assemble a vehicle locally, despite import taxes on these vehicles. Despite being home to the continent’s second largest population, the overall automotive market size remains small in the short to medium term for current and prospective assemblers and producers. However, Ethiopia’s strong government support for industrialisation and the development of auxiliary industries coupled with a large cost competitive labour pool, and sizeable investments in infrastructure (both physical and economic) could position the country favourably for automotive manufacturing in the long term to service both the regional and domestic market with price competitive vehicles. To achieve this, clear definitions of local content need to be developed. The country’s high tax rates on vehicles reduce the affordability of vehicles, especially given the low income of the population, and restrains the vehicle retail market. To address this, industry stakeholders should support the establishment of vehicle financing solutions, in order to encourage wider vehicle ownership. Taxes should be revised to also take the age of vehicles into account in order to provide incentives for locally produced vehicles.

Market Reports

The Market for Auto Parts in Ghana

Market Reports

Nigeria's Tyre Market

Globally, the leading tyre manufacturers today include Bridgestone, Michelin, Goodyear, Continental, Pirelli and Sumitomo (for Dunlop brand). World production of tyre is estimated to be 860 million units annually. Within Africa, significant tyre factories exist in Egypt, South Africa and Zimbabwe. Nigeria tyre market is now emerging as a leading importer of tyres in West Africa. The Nigerian tyre industry took off shortly after independence in 1960 with both Dunlop Nigeria Plc and Michelin Nigeria Limited establishing their respective manufacturing outfits. By the Year 2005, the combined annual local capacity was 2.25m units, representing 75% of Nigerian tyre market at that time. These two companies were the only tyre manufacturing outfits in Nigeria, and indeed the West Africa region. Africa accounts for less than 1% of the global tyre production, while Nigeria then produced only about 0.2% when its factories were fully operational before the owners of the two tyre factories (Dunlop Nigeria Plc and Michelin Nigeria Ltd) shut them at the end of 2008 and 2006 respectively, due to the harsh operating environment (infrastructural deficiency, tariff structure, etc). THE NIGERIAN TYRE MARKET In the last forty years and starting during the oil boom years, the increased number of cars in Nigeria over saturated Nigerian roads. The demand for tyres kept growing over the years and the tyre market, like many other markets in the country at that time, was a seller’s market. This growth continued until the economy started to decline in the last twenty years as a result of the world’s energy crisis, coupled with our own internal problems. Over the last 20 years or so, it had become difficult to buy new cars and most people had to resort to second hand (Tokunbo) cars. The market reacted by importing an increasing number of second hand cars into the country from different parts of the world, which became more affordable and influenced the car tyre market in several ways. In the Nigeria tyre market, there are both premium and budget (cheaper tyres), but the ever declining purchasing power of the consumers continued to make the budget tyres more attractive. Budget tyres (which account for about 80% of the Nigerian total tyre market) are imported mainly from Asian countries. These are usually low quality, low priced tyres, allowed into the country so long as they meet the standards set by Government agencies. Standards Organisation of Nigeria is expected to inspect these tyres on arrival. The global tyre market is estimated to be $190 billion while the tyre market in Nigeria is about $1.0 billion. The total Nigerian tyre market size is estimated to be 5.7 million units (car, van & light truck – 3.9m and truck – 1.8m) with a projected growth rate of 3-5% annually). There are about 150 brands of tyres in the Nigerian market with five dominant players namely: Dunlop, Michelin, Bridgestone, Pirelli and Firestone. By 2008, all the imported brands accounted for about 90% share of the market as against only 25% in 2005. Today, all the tyres in the Nigerian market are imported following the cessation of local tyre manufacturing. DOWNLFALL OF THE TYRE INDUSTRY IN NIGERIA Dunlop was incorporated on October 21, 1961, beginning with tyre imports and started production in 1963. The raw materials for tyre manufacturing are natural and synthetic rubber, carbon black, wires, zinc oxide and other chemicals. All the raw materials are imported except zinc oxide, mineral oil and natural rubber. Warri Petrochemicals produced 2 out of 6 grades of carbon black used by the tyre industry locally. Dunlop Nigeria Plc, when the import duty tariff on both car & truck was 40%, started importing Heavy Truck Radial (HTR) in 2000. The company subsequently embarked on the local production of Heavy Truck Radial, which was part funded by National Automotive Council (NAC) through its NAC- Automotive Development Fund. The HTR factory was commissioned by in 2005. Barely 4 four months after, there was a reduction in HTR tariff to 10% from 40%. In December 2006, Michelin Nigeria Limited shut its factory due to the harsh operating environment (infrastructural deficiency, tariff structure, etc), disposed its equipment and left, after 43 years of operations in Nigeria. Dunlop Nigeria Plc continued despite the fact that the problems that made Michelin to relocate out of Nigeria also affected it but remained with the hope that those problems would be addressed. Unfortunately, these problems made it difficult for Dunlop to dispose its tyres (both truck and car) at reasonable margins because it had to compete with imports at 10% duty rate and the attendant infrastructural disadvantage which increased its production cost by about 40%. Both companies (Dunlop and Michelin), before and after 2006, had on several occasions drawn the attention of the government at all levels to these problems. Regrettably, not much response was received from the relevant authorities, and because it could not continue to erode its shareholders funds, Michelin was forced to stop production at its factory by December 2006 while Dunlop followed the same path in December, 2008. They have both since joined the league of those importing tyres into Nigeria. The closure of the two tyre factories in the country have resulted in loss of over 3,000 direct and several thousands of indirect jobs, closure of many smaller feeder cottage industries that serviced the factories, non payment of taxes etc. REVIVING THE TYRE INDUSTRY IN NIGERIA The Nigeria tyre market is generally placed under “strategic industrial sector “in any nation. In Nigeria, during the Civil war 1967-1970, because of the location of Michelin factory in Port Harcourt, it could not function, and as a result virtually all the tyre requirements of the Nigerian Armed forces were supplied completely and exclusively by Dunlop Nigeria Plc. Most of the tyres used by the peace keeping forces in Africa were equally supplied by Dunlop Nigeria. The mass transportation sector in Nigeria is currently facing major challenges. The rail and water mode of transportation are not fully developed and this leaves road mode of movement as the most viable, significantly strategic and most preferred, and by extension, tyre becomes the singular most important component in the road mode of transportation. The national tyre demand annually is very large, enough to accommodate at least five different tyre factories with capacity of 20 million kg or 1m car/van tyres each. Thus, the combined capacity of over 100m kg will just be about enough to optimise the market in Nigeria. This excludes the rest of West Africa which is about another 50% of Nigeria tyre market. These tyre factories have potential of creating over 10,000 direct jobs, and several thousands of indirect job openings. Creation of smaller feeder cottage industries, payment of taxes, better security situation and positive impact on the national economy are all the positive implications of a functional Nigeria tyre market. The natural rubber, carbon black and other petro chemicals available in Nigeria will also be value addition processes. The subsidiary Company of Dunlop, Pamol Nig. Ltd., has 15,000 hectares of land across Cross River, Delta and Edo states and employs not less than 10,000 persons directly and indirectly in its rubber plantation business. Michelin, on the other hand, has bigger rubber plantations in Ogun and Edo states but while Dunlop used its raw rubber in the local production of tyres up to December 2008, Michelin exported its raw rubber out of the Country and then imports their finished tyres back in to the country, since January, 2007. Considering the strategic need for the tyre industry and its attendant benefits, it is imperative to revive the industry without further delay. The new auto policy introduced by the government recently is a positive step in this direction. To make the implementation of the policy more effective, there is need for a monitoring body consisting of SON, Customs and tyre manufacturers’ representatives to regulate tyre importation into the country. The ongoing reforms and efforts in the power sector are commendable and should continue. This will address quite a number of manufacturing challenges facing the tyre industry in the country. DEMAND IN NIGERIA TYRE MARKET The Nigeria tyre market is very strategic for the nation and should be revived. The import-friendly policies that are crafted ostensibly out of not envisaging the full implications on the Nigerian economy should be discouraged. The recent auto policy announced by the Nigerian government is a positive step in this direction. The current situation where tyres that can be manufactured locally are imported will only help to fuel job creation in other countries while unemployment in Nigeria country continues to rise, with all the security implications. The Nigeria tyre market can play a crucial role in job creation too. Recent policy articulations and implementations by our government in respect of power, cement, rice, sugar, etc gives a lot of room for optimism that the new National Automotive Policy would also be faithfully implemented. Specifically, the policy as it affects encouraging local tyre manufacture includes pioneer status which gives 7-year tax holiday, zero duty on imported tyre manufacturing equipment, 5% import duty on raw materials and on tyre imports to augment local production in the first two years, while ramping up capacity. Nigerian government’s more critical understanding of the implications of the ECOWAS/EU Partnership Agreement also signifies a new level of enlightened self interest towards job creation opportunities for its teeming youth population, while ensuring value addition to its abundant major tyre manufacturing raw materials, such as natural rubber and carbon black, both of which make up about 70% volume. Both Nigeria's petrochemical and steel resources also hold strong promise to provide the bulk of the remaining major raw materials for tyre manufacturing, into the future.

Market Reports

Kenya's Automotive Market

Kenya’s GDP per capita is expected to reach US$1,432 by the end of 2015 and to grow at a CAGR of 7.5% between till 2020. This is expected to result in an increase in private consumption and amongst other things, drive the sales of motor vehicles. Expenditure on the purchase of cars, motorcycles and other vehicles accounted for 1.5% of total consumer expenditure in 2015 and is expected to remain relatively stable to 2025 as incomes rise. The volume of imported cars and motorcycles has been on the increase due to the availability of attractive credit from financial institutions and the rise of the middle class. According to the Kenya National Bureau of Statistics (KNBS) the volume of imported vehicles between 2003 and 2012 have grown at over 300% from 33,000 units to 110,474 units. Passenger vehicles were Kenya’s fourth largest import overall in 2015, valued at approximately US$440 million and making up 2.4% of total imports (by value) while commercial vehicles ranked seventh, valued at US$380 million. If the current trend of 10% to 12% growth per annum on vehicle imports is to be maintained, Kenya will have five million vehicles on the road by the year 2030. In the early 1980s, Kenya banned the importation of FBUs. At the time, Kenya was assembling approximately 18,000 units locally. Following a World Bank-imposed structural adjustment programme (SAP) in mid-1993, the country removed a large number of trade restrictions and the economy underwent liberalisation, allowing the importation of FBUs. As no age limit was imposed on vehicles imported, second-hand imports, some up to 20 years old, flooded the market. To date, Kenya is still highly dependent on imports to meet domestic demand, with imports making up 94% of bilateral automotive trade and second-hand vehicles accounting for over 80% of those imports. Both passenger and commercial vehicles feature in Kenya’s top ten imports by value. As the regional gateway on account of the Port of Mombasa, 99.9% of Kenya’s automotive exports are to other African countries, with Uganda and Tanzania being the biggest markets. Africa Automotive Directory The African Automotive Directory compiled by Africa Business Pages has emerged as a helpful resource for those looking for buyers of automotive spare parts in Africa. The Africa Automotive Directory lists all major auto parts importers in 49 African countries and is available for immediate download in Excel format. This special directory is updated every six months is available for sale at the Africa Business Pages B2B portal at a nominal cost of US$350. The Africa Automotive Directory has helped many exporters, manufacturers and dealers of automotive spare parts connect with their business counterparts in the African markets and develop direct business relations and expand their sales and distribution network in key African markets. Kenya: Booming Market for Automotive Spare Parts Although Kenya used to have large volumes of grey and illegal imports, this has been reduced through a number of government interventions, and as a result the used imported market is now more regulated. The Kenya Revenue Authority and the Kenya Bureau of Standards are situated at entry ports such as the Port of Mombasa and Jomo Kenyatta International Airport to monitor and record the arrival of vehicles. Vehicles entering through these ports that are destined for countries other than Kenya, such as Uganda, have to receive their clearance and payment confirmation of registration fees from the destination country before they are able to leave the port of entry. Vehicles Numbers It is estimated that approximately 80% of Kenya’s total vehicle fleet are second-hand vehicles, with a total vehicle fleet of around 1.4 million units in 2015. In 2014, the average age of vehicles on Kenya’s roads was 15 years, which has resulted in high levels of pollution, frequent break-downs of vehicles, and a large non-genuine spare parts industry developing. The total number of vehicles in use grew at a CAGR of 7.7% between 2005 and 2015. Figures for Kenya’s motorisation rate differ depending on the source, and range between 26 and 28 vehicles per 1,000 persons. This is forecast to increase to 31.5 in 2019, reflecting vehicle ownership growing faster than Kenya’s population. Vehicle Sales According to the KNBS, a total of 112,536 vehicles were registered in 2015 – this included newly registered and re-registered vehicles. KNBS does not differentiate between the registration of new vehicles and the re-registration of used vehicles, whereas the Kenya Motor Industry (KMI) only records new vehicles sold. KMI states that 19,523 new vehicles were sold in Kenya in 2015, reflecting the dominance of used vehicles in the retail market. In 2015 light and heavy commercial vehicles combined accounted for 86% of total vehicle sales, highlighting the importance of larger vehicles, such as light commercial vehicles, minibuses, heavy trucks, and buses. Sedans and SUVs made up 14%. Heavy commercial vehicles too saw the highest growth, with a CAGR of 17.5% between 2005 and 2015 and thus were key drivers underpinning new vehicle sales growth over that period. Sales of new vehicles in Kenya are driven by the demand for transportation in the construction, mining, agri-business, tourism, energy and retail sectors. The government and in particular its law enforcement and security authorities are significant buyers of new vehicles. The most popular second-hand vehicles cost between Ksh350,000 and Ksh500,000. In light of current growth drivers, business fleet purchases make up a significant proportion of total vehicle sales. It is expected that firms investing in Kenya’s economy will drive stronger demand for business fleet purchases, particularly given the number of major infrastructure investments in the country in recent years, notably the Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor Project. The Kenya Local Government Sector Reform Strategy has given greater budgetary autonomy to local governments (Counties), resulting in County governments expanding their vehicle fleets and further driving local demand. Production and Assembly Kenya’s automotive market is largely focused on retail and distribution of vehicles, and after-sales support in servicing and spare parts sales. Small scale assembly of motor vehicles is done at three assembly plants, the General Motors East Africa (GMEA) plant in Nairobi, the Associated Vehicle Assemblers (AVA) plant in Mombasa and the Kenya Vehicle Manufacturers (KVM) plant in Thika. All three of the plants are operating below their capacity. However, the country’s good infrastructure, relative to other countries in the region, as well as its physical and strong economic position within the East Africa Community (EAC), make it a potential hub for automotive assembly and production in the region. Recently, counties have been lobbying with investors to set up manufacturing hubs in their regions to provide employment and promote trade within their jurisdictions. In February 2016, Machakos County signed a deal with Ashok Leyland to set up an assembly plant in the county recently. Locally produced vehicles are assembled from CKD kits with minimal locally produced inputs. KMI defines CKDs as a package of most or all of the individual parts of a vehicle, as separate pieces. All of the pieces are brand new from their country of origin. As Kenya does not locally assemble sedans (except occasionally on an ad hoc basis), commercial vehicles dominate Kenya’s domestic production – a similar focus employed in the early stages of Thailand’s automotive sector. In 2015, Kenya assembled 9,295 vehicles, of which 921 (close to 10% of assembly) were light commercial vehicles (LCVs) such as pick-up trucks, and the rest of the 9,295 were heavy commercial vehicles (HCVs) such as trucks and buses. The assembly of motor vehicles in Kenya grew by almost 32% from 2013 to 2015. High growth of 54.4%, 43.7% and 20.8% was registered in the production of pick-ups, trucks and buses respectively. Kenya’s vehicle assembly figures are forecasted to almost double between 2013 and 2019. Policy Environment The Kenyan government has identified the automotive and auto parts industry as a major economic driver in the Kenya National Industrialisation Policy Framework released in 2010. In order to build up its automotive industry, the framework identified five policy statements: 1. The development of a 40 hectare automotive industrial park in Machakos by 2012; 2. Providing incentives to encourage locally assembled vehicles and the production of autos parts in order to gradually replace imported second-hand vehicles with locally assembled vehicles; 3. The establishment of a National Automotive Industry committee which would be tasked with developing the automotive value chain and co-ordinating the industry; 4. Impose high tariffs on automotive parts that could rather be produced locally to encourage the growth of a local industry; and 5. Set up a joint venture with an established automotive manufacturer by 2016 with the goal of domesticating the company within ten years. While to date, most of the goals are yet to be realised, the government has devised a number of policies such as a 30% local input requirement for locally assembled vehicles (although this had not been implemented at the time of writing). The Kenyan government has also committed to supporting entrepreneurs in the automotive components industry, developing the auto components supply chain, placing high tariffs on imported automotive components that could be manufactured locally and the formation of a national automotive industry board. All vehicles imported for use in Kenya attract an IDF (Import Declaration Fee of 2.25% of CIF) and RDL (Railway Development Levy of 1.5% of CIF) tax and are depreciated based on the year of manufacture and registration. Vehicles imported as CKDs attract 0% import duty but can only be imported by a licensed manufacturer. CKD kits are assembled in a KRA Bonded Warehouse facility and are only then required to pay IDF fees. However, as soon as these are removed from the bonded facility and are used in Kenya, they are subject to value added tax (VAT), excise duty and the RDL. Vehicles assembled in Kenya for export are not subject to domestic taxes. In July 2015 the Ministry of Industrialisation proposed policy measures in the Policy Framework for Motor Vehicle Assembly in Kenya to complement the National Industrialisation Policy Framework. The policy aims to promote new investments in the country’s automotive industry and for Kenya to become a globally competitive vehicle manufacturer. The 2015 framework aims to impose a tax of 2% on all imported FBU units, the creation of an Automotive Innovation Fund (AIF) to support research and development in the sector and the inclusion of the sector in special economic zones (SEZs), with the SEZ Bill passed at the end of 2015. Local assemblers and eventually producers located in SEZs will be afforded benefits including ten year tax holidays, low utility rates, and export credits. The new framework, similar to the National Industrialisation Policy Framework, aims to create a National Automotive Council (NAC) which will be equipped to address aspects relating to the assembly and manufacture of vehicles, including capacity building and the proposal and implementation of incentives. The 2015 Policy Framework for Motor Vehicle Assembly in Kenya differs from the 2010 National Industrialisation Policy Framework in that engagement with the private sector has been more consistent. Rather than focusing on industrialisation as a whole and manufacturing more broadly, the new framework is centred on the automotive industry with a structure to drive local production. Stakeholders in Kenya’s automotive industry were engaged with to a greater degree than before and as a result the 2015 framework is seen as an improvement on the previous framework and a step in the right direction. In contrast to other EAC markets, vehicles older than eight years are not permitted for import into Kenya. Although, there is anecdotal evidence of cases of importers forging import documentation of older vehicles, this law is largely abided by and the industry believes that government implements it effectively. All imported vehicles undergo a roadworthiness inspection and the Ministry of Industrialisation is in the process of lowering the legal age limit of second-hand vehicles imported into the country to five years. This should reduce the number of imported used vehicles, as newer second-hand cars will be more expensive. Within the EAC, products substantially transformed (i.e. from CKD to full assembly) in any of the member states (Burundi, Kenya, Rwanda, Tanzania and Uganda) should be sold on a duty-free basis in the other member states. In 2009 EAC member states ratified a Common External Tariff (CET) of 25% on vehicles imported into the region, hoping to drive local assembly. However, the other EAC countries have requested that the implementation of the CET be put on hold and continue to impose duties on vehicles assembled in Kenya, which currently is the only country in the EAC with the capacity to assemble vehicles. Tanzania and Uganda’s arguement is that vehicles assembled in Kenya do not abide by Tanzania and Uganda’s local content requirement of 35% and therefore do not qualify for duty-free access to these markets. Vehicles assembled in Kenya are therefore imported into these markets with a CET of 25%. This has resulted in imported vehicles having an advantage over vehicles assembled regionally, as cars arriving from Japan in Uganda and Tanzania are cheaper than vehicles assembled in Kenya. However, the Kenyan government is engaged in talks with other EAC states and it is likely that the issue will be resolved in the short term. Beyond the domestic policy focus on the automotive sector, Kenya was also identified by the EAC as a potential vehicle production hub for the region in its draft East African Industrialisation Strategy 2010-2030 released in 2010. The draft argued for encouraging major carmakers that already imported vehicles into the region to rather produce locally. However, this was left out of the final EAC Industrialisation Strategy 2012-2032, where the assembly of cars, buses and tractors and vehicle spares was identified as having the least growth potential in the region of 20 industries considered. Industry stakeholders interviewed however recognised the opportunity of both the regional parts value chain as well as the EAC as an export market for Kenyan produced vehicles and parts. One of the greatest inhibitors to the advancement of Kenya’s automotive sector is the proliferation of second-hand vehicles available in the market. Decreasing the age of cars allowed for import while simultaneously decreasing the affordability of these cars by increasing the taxes levied on them should drive sales of more affordable, newer, roadworthy, and locally-assembled cars. Incentives to assemble locally, such as tax breaks or waiving of import duties for parts, will make it more affordable to assemble vehicles in Kenya in the short to medium term and could encourage production in the long term. Also, definitions of local content need to be developed and aligned to the other EAC members’ automotive and manufacturing policies. These need to be accepted regionally, especially within the EAC, for Kenya to pursue an East African automotive manufacturing hub and export strategy. The development and promotion of auxiliary industries in partnership with the vehicle assemblers will enable automotive companies to source high-quality inputs locally, further strengthening the case for local assembly. The Kenyan government is particularly aware of the need to improve the country’s infrastructure, with programmes in place to increase electricity accessibility and either refurbish or build new transport infrastructure. Despite new investments in the country, Kenya’s automotive sector is relatively stagnant and runs the risk of being side-lined in the long term by other regional players such as Ethiopia, which has a more progressive approach to industrialisation.

Market Reports

Nord: The Made-in-Nigeria Automotive Marque

The Nigerian auto industry is set to witness a boost with the entry of a fully Nigerian auto company, the Nord brand of automobiles cutting across passenger and commercial vehicles. The five Nord models assembled in Lagos and unveiled are the Nord sedan A3; the Nord SUV A5; Nord Flit mini bus; Nord Max pick up; and Nord Tank pickup. Nord Automobiles is a Nigerian automotive manufacturer with headquarters in Lagos, Nigeria that aims to produce an indigenous made-in-Nigeria automobile brand. The company’s operations focus on delivering quality expertise in the value chain – which includes the design, sourcing, development, assembling, distribution, marketing, provision of sales and after-sales service of its unique Nigerian branded automobiles. Nord fleet of Nigerian branded vehicles include the Nord Max, Flit bus, Aso truck, Lasgi big bus, Q3 sedan, Q5 SUV, Nord Yarn, Ben SUV and the Urban sedan. Nord Automobiles aims to: Design and alignment of vehicles in Nigeria and Sub-Saharan Africa to fit the local climate. Offer affordable and durable vehicles. Offer easy access to best-in-class after-sales quality service. Build a reliable and credible Nigerian auto brand According to Oluwatobi Ajayi, Chief Executive Officer of Nord Automobiles, the company aims to stop the importation of substandard vehicles into Nigeria, and to drastically reduce the huge amounts spent annually on automobile imports from overseas markets. He stated that the fast-evolving Nigerian market has shown a strong demand for vehicles that are stylish, comfortable and have premium features, hence, Nord models have come to meet the demand. With the launch of these vehicles, he added, “we aim to exceed expectations by offering our customers world standard products at very competitive prices.” “The Nord vehicles are designed for the discerning customer, who craves daily satisfaction and full automobile experience. They are a perfect combination of style, performance and fuel efficiency,” he said. Made in Nigeria The Nord assembly plant is located on a 2,100 square meters of land space in Sangotedo in Lagos, while and another one recently acquired and occupying 3,400 square meters of land at Epe is currently undergoing construction for the assembly complex in readiness to meet the growing automotive market and increasing customer demand. Nord Automobiles is collaborating with some of the biggest automotive firms in Europe and Asia, which offers the company an edge in its pursuit to deliver durable, safe, reliable and affordable vehicles for Nigerians and give buyers of the brand good value for money. Stylish Designing Exterior Design – The exterior design of any Nord vehicle replicates class and luxury with a striking presence and bold looks to make sure that your car stands out anywhere you are. The popular Nord Tank has a led daylight running light and a four-wheel drive, the exteriors are powerful and elegant. Interior Design – The interior design is rich and sophisticated and includes several features including a one-button drive function, Eco-drive system, touch screen infotainment, blue tooth, audio streaming, HDMI-in-slots, USB-in-slots. The interior is made with premium upholstery. Safety Features – Nord vehicles are equipped with Antilock Braking System, Electronic Brake Distribution, dual front airbags, and with the highest safety rating by Euro NCAP and C-NCAP. Colour Variants – Nord vehicles have over 6 different colours variant to customize your car with, with options on the website to customize your vehicle giving it a personalised feel. Safety Service and Warranty – Delivery of the models would begin immediately, from dealers. The Nord vehicles would offer complete peace of mind with 1 FREE scheduled maintenance at 3 months or 5000km. Customers can opt for an extended after-sales plan for total peace of mind.

Market Reports

Nigeria's Automotive Market

With a population of close to 180 million and a GDP of US$493 billion in 2015, Nigeria is the most populous country with the largest economy in Africa. Despite the current economic challenges facing the country due to low oil prices and a weakened currency, Nigeria still reveals robust economic growth of 2-4% in the medium term. Owing to the lack of domestic vehicle production, Nigeria is highly dependent on imports to meet its domestic demand. In 2014, passenger vehicles constituted the second-largest import category after petroleum oils or bituminous minerals. Overall automotive related imports stood at US$6.9 billion (passenger vehicle imports: US$2.9 billion) accounting for approximately 11.5% of Nigeria’s total imports. While auto imports recorded rapid growth between 2004 and 2014, the current slowdown in the economy and the recent introduction of high import duties on vehicles linked to the new automotive policy has led to approximately a two-third contraction in vehicle imports according to industry players. Second-hand vehicles dominate the import market. It is estimated that approximately 10% of vehicles imported to Nigeria are brand new. A large share of second-hand vehicles are imported from the US, given that vehicle specifications in this market are more in line with the demand and taste of Nigerian consumers, which is not always met by entry-level models from Europe. Before the hike of import duties on second-hand vehicles, Nigeria imported more than 100,000 cars per year from the the US. In 2015, imports from the US had plummeted to less than 40,000 units. In addition to direct shipments to Nigeria, the Port of Cotonou in neighbouring Benin is a key transit point for second-hand vehicles destined for the Nigerian market. It is estimated that 85% of Benin’s used vehicle imports end up in Nigeria. In 2013, the European Union (EU) and the US exported approximately 300,000 cars to Benin. Based on the import figures for Benin, an additional 255,000 used cars from the EU and the US entered Nigeria via Benin. There is no culture of maintenance in Nigeria – people drive their cars until they break down and then fix them. Vehicle Numbers Depending on the source of data, the current vehicle fleet in the country ranges from 1.3 million vehicles to 10 million vehicles. According to the Federal Road Safety Corps the total fleet size was 1.65 million units in 2015, of which approximately one third are concentrated in Lagos State. Even applying the least conservative estimate of vehicles in use, namely 10 million vehicles, Nigeria’s motorisation rate is approximately one-third that of the global motorisation rate with less than 60 vehicles per 1 000 people. Due to the New Automotive Industry Development Plan (NAIDP) launched in 2014 that increased the prices for imported vehicles, and the economic slowdown triggered by low oil prices, Nigeria’s growth in fleet size slowed down remarkably in 2015. However, it is expected that in the short term fleet growth will stabilise in a range between 4.5% and 5.5% per annum. Vehicle Sales Despite being the most populous country in Africa, Nigeria’s new vehicle sales lag behind less populated countries such as Algeria, Egypt, Morocco and South Africa. According to industry players, the overall new and second-hand market combined ranges between 500,000 and 1 million units per year. Smuggling, grey imports of second-hand vehicles and the lack of reliable data however, make the exact size of Nigeria’s vehicle market and fleet size difficult to quantify. Challenges concerning the licencing 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 2% 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 20% per annum and require at least a 10% down-payment. Commercial banks usually require repayment of vehicle loans within four years, due to the rapid depreciation of the value of vehicles given poor road conditions. According to one of the most established vehicle finance providers, the monthly repayment amount should not exceed 35% of the monthly income of the borrower. The short repayment-period as well as the high interest rates present a key challenge for low- and middle-income households when it comes to accessing vehicle finance. 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, arguably the market segment with the largest growth potential. Through recently introduced promotional offers by banks in partnership with selected vehicle dealers, customers are able to access finance at a discounted rate for a limited number of vehicles and models. Indeed, the provision of alternative financing products, especially in-house financing by the automotive companies, is seen by industry players as a key requirement for the growth of the local market. However, 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 80% of sales in 2014. The share of tokunbos in the commercial vehicle market is even larger, reaching up to 90% of the market according to a leading commercial vehicle manufacturer. New vehicle sales are dominated by Toyota which accounts for almost one third of new sales. Hyundai and Kia have established themselves as increasingly serious competitors to Toyota due to their competitive pricing and improved image in terms of quality. In 2015, the three Asian brands accounted for half of new vehicle sales in the country. The economic slowdown, the depreciation of the naira and the increase in vehicle prices due to the import duty hike had a substantial impact on new vehicles sales in 2015. Although vehicle sales saw positive growth post the global financial crisis, total new vehicle sales dropped by more than half in 2015, compared to 2014. The sharp decline of sales highlights the absence of sizeable and competitive domestic assembly that could provide an affordable alternative to imports and the dependency on vehicle imports to meet domestic demand. Production and Assembly Nigeria is no stranger to automotive assembly and manufacturing. Already in the 1970s Nigeria started assembling motor vehicles. In the 1970s and 1980s, the federal government of Nigeria partnered with six international automotive and commercial vehicle manufacturers to produce passenger and commercial vehicles locally from CKD kits. According to the National Automotive Council (NAC) these six companies had an initial installed capacity of 149,000 units per annum during the 1970s and 1980s. “Sometimes, cars are imported to be stripped for parts as availability of genuine parts is limited.” In addition to these plants, the Federal Government entered into five more agreements with international automotive companies to establish assembly plants in 1982, according to the National Automotive Design and Development Council Nigeria. These agreements included the establishment of plants by Isuzu in Maiduguri, Mazda in Umuahia, Mitsubishi in Ilorin, Nissan in Minna and Peugeot in Gusau. However, these plans did not materialise. Furthermore, due to inconsistent policy implementation, corruption, declining patronage by local and federal government departments and lack of reliable power supply, the output and capacity utilisation of the six existing plants declined rapidly. Symptomatic of the demise of Nigeria’s automotive industry was the stop of production activities by Peugeot Automobile Nigeria (PAN), Nigeria’s largest manufacturer, in 2010. Since then assembly plants have been lying dormant. By 2012, all of the country’s automotive manufacturers had been privatised as the government exited the existing partnerships, eroding any incentives for government departments to purchase locally assembled vehicles The launch of Nigeria’s NAIDP in 2014 and the subsequent hike in import tariffs for vehicles has attracted the interest of leading international carmakers and has led to the resumption of small scale vehicle assembly in the country. While the high import tariffs are aimed at encouraging local assembly, the sharp drop in vehicle sales in Nigeria in 2015 is a strong indication that this measure had an adverse impact on overall vehicle prices in the absence of a sufficient assembly base that could provide substitutes for imported vehicles. In 2015, local assembly was only able to cover 10-15% of the new vehicle market. According to a senior representative of one of the automotive companies present in Nigeria, approximately 1,000 passenger vehicles were assembled in Nigeria in 2015 – an even more conservative estimate. Currently, 35 companies are licensed to produce by the Nigerian Automotive Council under the NAIDP. Despite the increased focus on the automotive industry, the sector’s contribution to Nigeria’s GDP remains low at 0.07%. 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 capitalise on the long-term growth prospects of the Nigerian market. However, due to the current economic slowdown, expansion plans are likely to be delayed as reflected in the decline of employment levels in some of the assembly facilities. Africa Automotive Directory The African Automotive Directory compiled by Africa Business Pages has emerged as a helpful resource for those looking for buyers of automotive spare parts in Africa. The Africa Automotive Directory lists all major auto parts importers in 49 African countries and is available for immediate download in Excel format. This special directory is updated every six months is available for sale at the Africa Business Pages B2B portal at a nominal cost of US$350. The Africa Automotive Directory has helped many exporters, manufacturers and dealers of automotive spare parts connect with their business counterparts in the African markets and develop direct business relations and expand their sales and distribution network in key African markets.

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