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German automotive industry intensifies links to Africa

January 12, 2021 10:45 am by: Category: Africa & World, BUSINESS, Car tests & New models, Featured, Investing, Mining & Engineering, MOTORING, Motoring News, NEWS Leave a comment A+ / A-

by MTHULISI SIBANDA 
JOHANNESBURG – THE German automotive industry is strengthening its partnership with Africa, where it sees significant potential.

German Association of the Automotive Industry (VDA) President, Hildegard Müller

As part of the expansion of ties, the German Association of the Automotive Industry (VDA) has partnered with the African Association of Automotive Manufacturers (AAAM) as part of the Partner Africa project of the German Federal Ministry for Economic Cooperation and Development (BMZ).

The partnership-based ties between VDA and AAAM comprises cooperation with local and regional structures.

This is to help the automotive industry improve access to sometimes difficult markets.

For VDA, cooperation with Africa focuses on expanding the sustainability strategy beyond products and production to include energy sources, such as e-fuels, and digital mobility solutions.

This is in addition to increasing trade volume and investment and further opening market access for manufacturers and suppliers and development of local supply and value chains.

“We highly appreciate our partnership with AAAM as the VDA intends to increase its involvement in Africa,” said Hildegard Müller, President of the VDA.

VDA and AAAM aim to create conditions for a flourishing automotive industry on the African continent.

This is to increase economic growth and welfare in Africa and enable German as well as African member companies to participate in market growth and foster trade and investments between Europe and Africa.

By 2035, Africa is expected to have the largest labour force potential in the world, according to the World Bank.

The motorization rate in Africa is just 45 vehicles per 1 000 inhabitants, which is below the global average of 203 per 1 000.

In 2019, the total volume of new vehicles sold in the African market was 869 000.

In that year, 62 000 passenger cars were exported from Germany to Africa, with 49 percent going to South Africa.

In 2019, some 355 000 passenger cars were sold in South Africa, with German OEMs accounting for 34 percent or 119 000 cars.

Africa is becoming an important market for the German automotive industry.

The estimated sales forecast of new light vehicles in Africa will be 1,8 million in 2027, double compared to the market volume of 2019.

Established in 2015 by global Original Equipment Manufacturers (OEMs), AAAM is the first automotive association with a pan-African approach.

“We are excited about our partnership with the VDA. It will provide expertise, resources and a strong network that will facilitate the development of the automotive industry in Africa,” said Dave Coffey, CEO
of AAAM.

– CAJ News

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