Finally, Tanzania's economy has grown by 1.2% from pre-pandemic rates. The vehicle market had a slight recovery in the month of June 2021. In that month sales were 170 units which represents an increase of +93.2%, being the month with the highest sales, with a total of 1,060 units in the first Semester (+47%). Toyota was the leader in sales with 48.7%, and the one with the lowest profit was Land Rover, with only 17.1%.
Market Trends After June
The Tanzanian market has recovered in sales taking as a reference the month of June 2021 and has continued to increase with 233.3% in the following months, the month of June has been taken as a reference of the trend that the automotive market is taking. That is, last year in June 2020 less than 500 units were sold, and in June 2021 1,060 units were sold.
When comparing the two months we obtain an increase of 47 in sales comparing June 2020 and June 2021. With these indicators as a reference, it can be said that the sales declines caused by the pandemic are being overcome, and the economy is in a recovery stage. Moreover, June 2021 sales outperformed June 2019 sales, even without the pandemic, with a difference in favor of 1.2%.
The brand that had a strong resurgence was Toyota who topped the automotive market table with a 48.7% increase in sales so far in 2021 which represents a market share of 25.3%, its opponent Nissan follows closely with 37.4% and behind it follows Land Rover which did not have a good year with only 17.1% in sales.
These trends may continue in the medium term
The news are encouraging for the Tanzanian car market is expected to sell between 2,000 and 3,000 units per year, however, they are still competing with unfair competition, i.e. used cars entering across the borders illegally.
Tanzania's vehicle market has been stable over the last decade. In 2016 it sold 2,035 units. In 2016 it had the highest number of units sold at 3,314. However, not the whole decade was a boom, as in 2019 the market reported losses of 20.2%, with 1,914 units, the lowest since 2010. Briefly, the automotive market has been growing surprisingly fast, and is forecast to recover in the medium term.