While Africa still sources the bulk of its new vehicles from traditional Western markets, it has been India that has made the most pronounced strides in recent years in growing its vehicle exports to the continent.

A Standard Bank report on vehicle demand in Africa, South Africa included, published in August, notes that “while still nascent, the market for new vehicles in Africa is expanding”.

The report, compiled by research analyst Simon Freemantle and economist Jeremy Stevens, shows that Africa is providing a small crutch for auto exports post the 2008 economic upheaval.

Since 2008, with the exception of China, all of the world’s large vehicle exporting economies have seen exports to Africa lift at a more profound rate than exports to the rest of the world.

In fact, for France, a contraction in global vehicle exports of –22% contrasts strongly with an 11% lift in exports to Africa. Similarly, the UK shows weak global export growth of 9% since 2008, but a 58% increase in exports to Africa.

It is, however, India’s ascent that has been most pronounced.

Since 2003, total Indian vehicle exports to Africa have grown by more than 1 000%, and by 160% since 2008.

In 2003, India was Africa’s twelfth-largest source of vehicle imports, lifting to sixth by 2012 — ahead of both France (third in 2003), and the UK (sixth in 2003).

Germany was the top vehicle exporter to Africa in dollar-terms in 2012, strongly challenged by China in second spot, followed by Japan in third spot, the US in fourth and South Korea in fifth position. South Africa came in at number ten, but was the fifth-fastest climber.

Last year, roughly 1.8-million vehicles were sold in Africa. Toyota accounted for 13%, or 237 00 units of these sales, and General Motors for 10%, at 180 000 units. Both these companies have plants in South Africa.

India’s growth into Africa appears to be driven by passenger car exports. Of total Indian vehicle exports to Africa in 2012, valued at $3-billion, 46% consisted of passenger cars, 14% of motorcycles, 7% of tractors, 10% of trucks and transport vehicles, 11% of car parts and 4% of motorcycle parts.

Since 2003, Indian passenger car exports to Africa have grown by a staggering 2 400%, from $55-million to $1.37-billion.

Last year, faced with a softening local market, India exported almost three times more cars to Africa than China, but half as many as Korea.

Indian car exports have grown at a significantly faster pace since 2008, at 155%, than that of China, at 65%, and that of Korea, at 55%.

While India has clearly focused on the passenger car market in Africa, China’s advantage has rested on transport equipment. In 2012, China exported $1.4-billion worth of trucks to Africa – compared with $310-million from India.

As for motorcycles, which the Standard Bank report regards as “indispensable components of urban and rural transport across some of Africa’s fast-growing and still poorly connected economies”, China, too, has been dominant. Exports in 2012 of $1.4-billion were almost three times larger than Indian exports at $430-million.

“Unsurprisingly, deeper and more established economies provide the bulk of passenger vehicle demand,” adds the report.

In 2012, South Africa absorbed the largest share, at 41% ($564-million), of Indian car exports to Africa, followed by Algeria ($410-million), and Egypt ($132-million).

The picture is different for motorcycles. In 2012, almost half – 48% (valued at $204-million) – of India’s motorcycle exports to Africa were absorbed by Nigeria, followed by Angola and Uganda.

Indian car and pickup conglomerates, such as Tata Motors and Mahindra & Mahindra, are active in Africa, as well as a number of Indian motorcycle manufacturers.

Last year, 30% of Maruti Suzuki’s exports were directed to Africa.

For Bajaj Auto, African demand for motorcycles is compelling: already, 40% of the firm’s global exports are absorbed by Africa. In South Africa, Bajaj Auto vehicles are imported by Jonway Motorcycles.

Attracted to these gains, Hero MotoCorp, the world’s biggest two-wheeler manufacturer, and TVS Motors are placing greater emphasis on the continent, and have both opened motorcycle assembly plants in Kenya.

Increasingly, firms with a local assembly and manufacturing presence will enjoy a critical competitive advantage, states the report.