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Uganda Autos Market Research -2014

The vehicle landscape in Uganda is dominated by used vehicles, imported primarily from Japan, as new vehicles remain unaffordable for most Ugandans. The most recent data released by the Ugandan Motor Industry Association show that newly registered vehicles are up 30.1% year-on-year (y-o-y) in the first 11 months of 2013. In light of this, an improving inflation and private consumption outlook, government commitment to developing 'productive infrastructure' and the development of Uganda's substantial oil reserves we have upgraded our forecasts over the 2014-2018 period.

Commercial vehicles, in particular pickups and station wagons, are dominating the small new vehicle market, accounting for 1,029 and 545 vehicles respectively in 11M13. Chinese commercial vehicle (CV)manufacturer Foton has recently announced plans to build a plant in Uganda. Currently the firm is awaiting approval from the Ugandan government to commence building the plant which would produce 100 vehicles a day. The plant will produce trucks and mini buses in response to the country's growing demand for CVs.

This trend is similar to that seen in other markets of the East African Community, where investment in vehicle production has been directed towards the CV segment as industries such as oil and gas develop.

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