Carmudi examines the current and future state of the automotive industry in Ghana and other Emerging Markets
Carmudi’s report on ‘The Booming Automotive Industry in Emerging Markets’ provides a detailed look into the global state of automotive sales and how car purchasing behaviors have changed due to the drastic increase in internet and mobile penetration, rising GDP, and the emergence of a middle class. The findings in this report are the result of Carmudi’s quantitative surveys conducted online with both car buyers and car dealers, and in-depth interviews with industry influencers throughout Ghana.
The State of Global Car Sales
Global automotive sales for 2015 are expected to reach close to $89M, a 2.4% growth from 2014. Emerging markets’ share of global sales will rise from 50% in 2012 to 60% by 2020, while their share of global profits is also set to rise by 10%. When it comes to new cars, purchase intent is strongest in Asia, where 65% of respondents say they will buy new cars in the next two years, compared with 7% who plan to buy used cars.
Growth of Auto E-Commerce
Globally, auto E-Commerce has grown at such a staggering rate that now as many as 80% of new car customers and almost 100% of used car customers begin their car shopping experience online. With internet and mobile penetration significantly growing in emerging markets, the rate of moving the car shopping experience online is beginning to mirror that of Western Markets. Evidence of this phenomenon can be seen when looking at automotive Google Search Queries. The Year over Year search growth is astonishing, particularly in Ghana where the growth of searches in the Motor Vehicle category grew 26%.
Changes in Ghana Car Sales
The Carmudi study found that 41.8% of car dealers in Ghana reported an increase in car sales over the past twelve months due to the changing economic climate, while 28% of car dealers surveyed reported a decrease.
The Shift to Online
44% of car buyers in Ghana reported turning to the Internet and Carmudi when researching cars. The majority of car dealers responded that up to 88.4% of their customers turn to the Internet. The responses also proved that offline media, including newspaper classifieds (14%) and auto expos (under 5%), are declining as a source for buyers. Car dealers in Ghana are also getting more and more digital when advertising their listings. 42% of car dealers are now primarily focused on advertising their car listings online. George Dwomor, CEO of De-Georgia Motors Ghana said, “60% of Ghanaians are using smartphones which means they go online to do their activities. The rise of cheap smartphones has allowed the masses from the middle class to have access to mobile broadband. Today, Ghanaians find it more convenient to determine car prices and specifications online before making a purchase.”
The Future of Car Sales in Ghana
Based on data collected from the Ghana National Road Safety Commission, BMI has predicted vehicle sales in Ghana to grow at 3.9% average per annum between 2014-2019 to hit 83,412 units by 2019. The country’s economy will enjoy strong economic growth in the medium to long term, fuelled by the nascent oil and gas field. Alhaji Majid Hussan, CEO of Ghafox Automobile Ghana said, “Unstable economic situations such as the dollar fluctuations have increased the cost of importing cars. Should the economic climate in the country become stable, the number of car sales should experience higher revenue by the end of the year.”
About Carmudi
Carmudi was founded in 2013 and is currently available in Bangladesh, Cameroon, Congo, Ghana, Indonesia, Ivory Coast, Mexico, Myanmar, Nigeria, Pakistan, Philippines, Qatar, Rwanda, Saudi Arabia, Senegal, Sri Lanka, Tanzania, United Arab Emirates, Vietnam, and Zambia. The vehicle marketplace offers buyers, sellers and car dealers the ideal platform to find cars, motorcycles and commercial vehicles online.