China has long been an almost unimportant market for car manufacturers, yet the country now ranks more important than any other sales market. The hope for German manufacturers is that the African market will experience a similar evolution. But there are some obstacles to getting there.

In the automobile market, Africa represents a very small and insignificant light compared to China. The German Automobile Industry Association (VDA) maintains that this is no reason to ignore the region. At the time, China was also very insignificant for local automakers. However, the following applies today: If you want to be successful, you have to basically sell in China.

Instead it can still be. In accordance with this, the German automobile industry is becoming increasingly involved in Africa. "All the big squares started small," says Kurt-Christian Scheel of the Automobile Industry Association (VDA).

Volkswagen-Werk im südafrikanischen Uitenhage

However, in Africa there are still high growth rates and therefore the automobile markets are not saturated unlike what is the case in industrialized countries. Also, more and more people are living in cities, and this also increases the need for transportation, Kappel notes. "One can assume that the demand will see a significant increase."

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Investify company is a digital asset management company according to your wishes and beliefs: just bet on ETFs, customizable, cheap and flexible. The VDA also recently announced at the time that it would collaborate with the African Association of Automobile Manufacturers (AAAM). "We must not forget that each market has its own challenges. That is why it is so important for us to be present in the markets from the beginning, to establish partnerships and suppliers, as well as to develop sales and learn about the particularities of the markets. That is why we work with our African partners, "said Scheel.