Total new-vehicle sales in sub-Saharan Africa, excluding South Africa, are expected to decline by 20% to 25% this year, says Nissan Africa regional office GM Jimmy Dando.

Nissan expects to see sales of its vehicles in the same region drop by around 20% in the financial year ending March 2010, to reach 23 000 units.

Dando says things were still looking up in December last year, with an upbeat Nissan expecting sales of 28 000 units for 2009, following healthy sales of 23 500 units in the 2008 fiscal year.

However, it took only one month for the global economic crisis to hit the continent, with sales dropping 25% from December to January.

Dando says governments, nongovern- mental organisations, and fleet owners – which make up around 80% of Nissan’s sub-Saharan customers – appear to be hard-hit by the credit crunch, and are unable to raise the capital required to buy new vehicles.

Among the markets still doing reasonably well are Kenya, Mauritius, Mozambique, Uganda, Ghana and Angola.

Struggling markets include Zambia, which is heavily dependent on its now failing copper-mining industry, the poli- tically unstable Zimbabwe, and Malawi, with its currency overvalued against most others, which renders imported goods relatively expensive.

Dando adds that there is still no evidence of an improvement in the African vehicle market, with any uptick expected to lag the expected global recovery by three to six months. However, he is hopeful that the market will show some improve- ment at the beginning of 2010.

“The recovery will be slow,” he notes.

However, despite all the bad news, a fresh opportunity has now presented itself in the midst of the crisis.

This comes as the yen’s strengthening against most African currencies has ensured that Japanese-sourced products have become too expensive for many countries, allowing for an increase in the sale of Nissan South Africa products.

“We see an opportunity to do 6 000 units into Mediterranean African countries this fiscal year,” says Dando.

Nissan primarily sells the Hardbody pick-up into Africa, with sales expected at around 14 000 units for the 2009 fiscal year, with a large portion of this sourced from the Rosslyn plant, near Pretoria.

Other products include the Navara, the Pathfinder, the Qashqai and the X-Trail.

A new addition will be the NP 200 half-tonner, also produced in South Africa, which is about to be launched into Africa’s right-hand-drive markets.

“The first shipment is going to Kenya later this month,” notes Dando.

The Livina is also scheduled to be launched into sub-Saharan Africa within the next two months.

To subscribe to Engineering News's print magazine email subscriptions@creamermedia.co.za or buy now.