GM expects increased sales in Africa in the next two years

Article by Christian Andrei, on April 16, 2013

General Motors’ regional head in Africa said that in the next couple of years, its annual vehicle sales are expected to increase by almost 20% to reach the 2 million mark as the growing middle class has been upgrading from motorbikes and jalopies to new cars. Last year, GM sold 180,000 vehicles in Africa, accounting for a market share of 10% and placing it narrowly behind Toyota, which posted sales of 237,000 in this continent.

But of GM's total sales, 100,000 were delivered to North Africa and 70,000 were sent to South Africa, which means that just 10,000 went to the poor but quick-growing countries in between. At the Reuters Africa Investment Summit in Johannesburg, GM Africa managing director Mario Spangenberg said that this is where they see a big opportunity for growth.

In Africa, GM’s sales volumes in Africa are regarded to be very small. Last year, GM posted sales of 6 million vehicles outside its traditional U.S. market. Spangenberg wants to take advantage of the growing overall market in Africa, considered to be one of the regions in the world with the fastest growth.

He also hopes to widen GM’s market share with models like the Isuzu pick-up, which has proven to be durable for Africa's tough conditions.

He said that he hopes to at the very least, maintain its 10% share and maybe grow it further. Africa has about 40 sub-Saharan frontier markets. Nigeria is considered to be the most appealing market as it’s the most populous country and is its largest oil producer.

Spangenberg said that it will take some time to have a presence in Nigeria though. He denied that GM’s expansion plans in Africa are being placed at risk by the arrival of Indian manufacturers like Tata Motors with its experience of producing and selling cars in comparatively low-income markets.

Topics: gm, africa, sales

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