Senegal 2018. Strong economic momentum boost demand for vehicles

Senegal vehicles sector suddenly dropped down 32% in 2018 with 5.655 units sold. Toyota held the throne – holding 27.5% of the market share – and the followers, Mitsubishi, Citroen and Renault, all declined in double-digits.

Senegal has been one of the most stable countries in Africa. Its current President, Macky Sall has been elected in March 2012. In 2016, its political system was strengthened by a constitutional referendum that slashed presidential mandates from 7 to 5 years. After decades of very modest growth, particularly from 2007 to 2013, in 2014 the Government of Senegal adopted the new Plan Senegal Emergent (PSE) designed to help the country get out of a cycle of low-growth and weak poverty reduction. Greater competitiveness, punctual progress in structural reforms, and a favorable external environment all mean economic growth has recently accelerated, reaching about 6.5% in the past 2 years and making Senegal one of the best performing economies in Sub-Saharan Africa.

Within the national development plan it was foreseen to progressively switch the mobility offer, actually concentrated on pre-owned imported vehicles, in favor of new, low emission and low consumption vehicles. This plan is supporting the development of a new vehicles market, with strong perspective for the next decade.

Indeed, after years of stable demand around the 5.000 annual units, in the recent years the new vehicles market started growing, hitting the All-time record in 2017 with 8.339 sales, including 7.005.

However, in 2018 the market has interrupted the previous years’ positive trend. Indeed, the year ended with sales falling suddenly down 32% with registrations at 5.655.

In the competitive landscape, Toyota held 27.5% of the market despite losing 42.8% from the previous year, closing the 2018 with 1.556 sales. In second place, Mitsubishi followed by Citroen and Renault.

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