Angolan vehicles market is decimated by the global pandemic and an increase in taxation. Indeed, Full Year 2020 sales have 1.486, down 84.1% compared to the previous year. Renault reaches 3rd position and gains7.2% market share.
Economic Environment
The economic downturn worsened markedly in Q2 at the hands of the pandemic, which battered domestic and foreign demand. Moreover, the all-important oil sector contracted for the 17th consecutive quarter. Turning to Q3, data continued to paint a bleak picture.
The unemployment rate rose further, which, coupled with spiraling inflation, will have weighed on private consumption. Price pressures have been building up, partly due to ongoing currency depreciation, which in turn will have also weighed on business activity. Moreover, the weakened currency, coupled with lower oil output and still-subdued prices, continues to heighten the risk of debt default.
In other news, social unrest continued into mid-November, with anti-government protesters taking to the streets on the country’s Independence Day. This, together with a global rise in new Covid-19 cases, is set to hamper activity in Q4.
Market Trend
The Angola vehicle market has been severely affected in 2020 by the global COVID-19 pandemic, which decimated sales.
Despite this country is among the most stable and rich in the entire African continent, the automotive industry is involved in the hardest crisis ever, due to the persistent recession, increased taxation, and increased import of used vehicles.
For all these reasons combined, the domestic market is in free-fall after having hit in 2014 the all-time record with 40.000 units.
However, when in 2015 the price of crude oil in the international market started to deeply fall, to not really recovered, the economy – too depending by the oil industry – entered in a recession and the political restrictive actions have only further hit the economy, killing internal demand for consumers goods. Indeed, in the following years the market lost terrain, falling at just 12.558 units in 2018.
In 2019 the market experienced a double-digit drop. Indeed, the Full-year ended at 11.546 units sold (-8.1%).
Full-Year sales for 2020 have been 1.486, reporting a 84.1% decrease compared to 2019.
Brand-wise, this year the leader Toyota (-87.4%) lost 7.6% market share, followed by Hyundai (-82.8%), which gained 1.2% share. Renault (-65%) reached the third spot and gained an impressive 7.2% market share.
The most sold model in the country remains the Toyota Land Cruiser with 167 sales (-88.6%), holding 9.1% market share.
