Over the past few years, Tanzania has emerged as a major trade center for used vehicle exporters. The country offers very pleasant and business like atmosphere to foreign traders. Plus the regulations for importing used vehicles in Tanzania are quite simple due to low duties. This African nation is one of the major importers of used vehicles. Japan has acquired the top most spot as the most consistent and reasonable vehicle manufacturing market.
The automobile industry of the country is still weak, but the market is growing, supported by growing incomes, improving urban infrastructure and the supply of cost-effective vehicles by Asian manufacturers. The automobile sector of Tanzania is not very strong, thus the country gives ample opportunities to other countries to enter the Tanzania market. Like other African countries, Tanzania is a popular spot for Japan used cars. Typical Tanzania market demand resistant, economical transport solutions, and Japan manufactured cars are groomed to offer that.
While offering used vehicles, Japanese market gives the best combination in price, economy, quality standard and flexibility. There are many exporters who are in this business line from almost 30 years and are known for meeting demands of customer’s needs and requirements. These exporters sell high quality, performance driven vehicles in varied range.
Tanzania market has long been dominated by Toyota Motors, but is giving other vehicle brands to dig in. Tanzania is one of the growing markets in the world and definitely holds huge business opportunities. Even the country does not possess very strict import regulations for used vehicles.
There has been strong prediction that there will be growth close to 3% per annum in new vehicle sales in Tanzania over the period of 2018. As per the statistics of the Tanzania Automobile Association (TMA), on an average Tanzanians buy around 4,500 light vehicles. When compared to the population of Tanzania which is around 49.3mn, it seems that new cars are still unaffordable to maximum population of Tanzania, giving used cars only route to the ownership of the vehicle.
Tanzania being an under-developed nation doesn’t have much to do with new cars as many people cannot afford to purchase a new car. Plus there may be a huge amount of taxation from the Government for registering a new vehicle, making used cars a feasible option. The limited size of new car market and limited growth potential has given fair chance to used car exporters to enter into the market. In the past few years, demand for used vehicles in Tanzania has risen immensely especially for personal cars.
Africa comes in the largest importer of Japanese used vehicles. It is just because of their flawless quality that Japanese vehicles are popular across the nation. Not only used cars, used trucks, buses, motorcycles, machinery, parts and accessories are exported from Japan to Tanzania.
The roads of Tanzania are loaded with used vehicles, whereas new vehicles are seen occasionally. A large portion of the population in the country purchase used vehicles. Mainly Japanese vehicles are dominating the market by offering reliable vehicles at practical prices. Hence, it can be concluded that the Tanzania marketplace is vast and dynamic, and is also very demanding in terms of quality. In order to hold the market, Japanese automobile exporters should make some efforts as profit can be earned by trying in different ways.