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How big is the used car market in Africa?
Aug 28,2025
The African Used Car Market: Large Scale and Rapid Growth
Overall Market Size
The annual transaction value of Africa’s used car market exceeds USD 18 billion, growing at a rate of 8%–10%. Nigeria, the largest used car market in Africa, imports over 200,000 used vehicles annually, accounting for 95% of its car market. Ghana imports about 100,000 vehicles per year, of which 90% are used cars.
Regional Distribution
- West Africa: Imports over 900,000 used vehicles annually, representing 70% of Africa’s total imports.
- East Africa: In Kenya, more than 96% of imported vehicles are used cars.
- South Africa: Primarily a high-end used car market, with about 100,000 transactions annually.
Main Source Countries
About 98% of Africa’s used cars come from China, Japan, and Europe. Japanese cars dominate due to durability, while China’s share of used car exports to Africa has grown from 1.2% in 2020 to 3.8% in 2024.
Growth Potential
Africa has only 44 vehicles per 1,000 people, far below the global average of 180. With the rise of the middle class and accelerating urbanization, demand continues to grow. By 2030, Africa’s vehicle ownership is expected to double, highlighting enormous potential in the used car sector.
Conclusion
Africa’s used car market is one of the world’s most dynamic emerging markets, combining both scale and growth potential, with standout performance in key markets such as Nigeria and Kenya.
What are the policies on the used car market in Africa?
Policies on vehicle age restrictions vary across African countries. Below are examples from some major markets:
- Nigeria: Since June 2023, imports of used cars older than 12 years are prohibited. Only vehicles within 12 years of manufacture are allowed.
- Ghana: Since 2020, imports of used cars over 10 years old are banned; only vehicles within 10 years are permitted.
- Egypt: For passenger cars, only hybrid or electric vehicles produced within the last three years may be imported. For commercial vehicles (excluding large transport vehicles), the age limit is under 10 years.
- Angola: Allows imports of used light vehicles within 6 years from the date of first registration, and heavy transport vehicles within 10 years.
- Ethiopia: Currently has fewer restrictions on vehicle age, but the Ministry of Transport has proposed banning imports of used cars older than 5 years.
Are Chinese cars popular in Africa’s used car market?
Chinese vehicles are gaining a strong foothold in Africa’s used car market thanks to their affordability, diverse models, and adaptability to local needs:
1. Market Performance of Chinese Cars
- Wide Model Range: Chinese used car exports to Africa include sedans, SUVs, pickups, buses, and even new energy vehicles. Popular examples include economy sedans like Chery QQ and Geely Emgrand, SUVs such as Haval H6 and Chery Tiggo 7, pickups like Great Wall Wingle 5 and JAC T6, as well as buses from Yutong and King Long, all well-suited to African road conditions and consumer demand.
- Price Advantage: Chinese used cars are relatively inexpensive with manageable transport costs, offering strong value for money.
- Growing Brand Recognition: While Japanese and Korean brands have long dominated, Chinese brands such as Geely and Dongfeng Sokon are steadily raising their profile through localized operations and after-sales services.
2. Future Trends in Africa’s Used Car Market
- Strong Potential for New Energy Vehicles: With growing environmental awareness in Africa, Chinese NEVs such as BYD Yuan EV and Wuling Hongguang MINI EV are emerging in ride-hailing markets in countries like Ghana. Government policies also create favorable conditions for NEV development.
- Deeper Localized Partnerships: Chinese companies are enhancing market penetration and reducing risks through collaboration with local dealers, establishing after-sales service networks, and engaging in SKD (semi-knockdown) assembly.
- Policy Support and Opportunities: Ongoing deepening of China-Africa trade and economic cooperation continues to provide favorable conditions and opportunities for market growth.
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