Hello everyone, I'm Lantai. Today, I'd like to take a closer look at the motorcycle market in Africa. Not long ago, I analyzed in detail the competition process of Chinese motorcycles in the Vietnamese market, but some friends believe that the failure of Chinese motorcycle companies in Vietnam is not entirely their own problem, but is due to Vietnam's secret restrictions on Chinese companies. This made me wonder if Chinese motorcycle companies could really be the king in the African market
Some believe that Chinese motorcycle companies are the real absolute kings in the African market. However, my findings are surprisingly contrary to these views. The real hegemon of the African motorcycle market is the Indian Bajaj Group. Let's take a closer look at the African motorcycle market.
The African motorcycle market: a deep competitive landscape.
First, let's take a look at the overall picture of the African motorcycle market. If you look at the number of motorcycles in a single country, the number of motorcycles in each country in Africa is not high. It can even be said that the number of motorcycles in Indonesia alone is equivalent to the number of motorcycles in the entire African continent. According to the Indonesian Motorcycle Industry Association, the annual sales of motorcycles in Indonesia reached 6.53 million in 2019, and in 2011, the annual sales of motorcycles in Indonesia reached 8.03 million, making it the third largest motorcycle market in the world.
In comparison, the continent owned at least 30 million motorcycles in 2020. In 2016 alone, 2.6 million motorcycles were registered across the continent. Among them, four countries, South Africa, Egypt, Nigeria and Morocco, account for 80% of the entire African market in motorcycle sales.
The hegemons of the African motorcycle market.
In the African motorcycle market, the top seven companies in terms of market share are:
Bajaj Group has the highest sales of motorcycles, especially in countries such as South Africa, Egypt and Nigeria, with a market share of more than 35%. In the Nigerian market, in 2015 alone, Bajaj Group exported 500,000 motorcycles to Nigeria, holding a long-term market share of 40%. In contrast, Chinese motorcycle companies ranked tenth, mainly represented by Chongqing Guangyu Motorcycle Company, focusing on the low-end rural market and mainly three-wheeled motorcycles.
Challenges for Chinese motorcycle companies in the African market.
Why haven't Chinese motorcycle companies achieved great success in the African market?There are several reasons for this:
First of all, the African market is flooded with second-hand motorcycles from developed countries, which are relatively inexpensive and of high quality. This has had an impact on the new motorcycle market.
Secondly, intellectual property issues have become a "roadblock" for Chinese motorcycle companies to enter the African market. Large Chinese motorcycle companies have encountered intellectual property lawsuits in markets such as South Africa, which has become an obstacle to their development.
Third, the best disease that Chinese motorcycle companies have committed in the Vietnamese market - involution and war. The extreme war makes it impossible for Chinese motorcycle companies to obtain sufficient profits and establish good after-sales channels, which ultimately leads to the loss of market share.
The success story of an Indian motorcycle business.
In contrast, the success of Indian motorcycle companies in the African market is due to several factors:
First of all, Indian motorcycle companies did not have intellectual property lawsuits with Japanese motorcycle companies, and they successfully entered the African market.
Secondly, Indian motorcycle companies rely on Indian immigrants from African countries to establish a relatively complete after-sales and sales network, especially in South Africa, where there are many Indian immigrants. Since India was a British colony, Indian immigrants spread to colonies around the world, including Africa, along with British colonists.
Finally, Indian motorcycle companies have made great progress in product quality after the joint venture stage with Japan, which is comparable to the actual level of Chinese motorcycle companies.
Epilogue. To sum up, although Chinese motorcycle companies exist in the African market, they do not have as large a market share as imagined. With local advantages and reasonable market strategies, Indian motorcycle companies have become the absolute king of the African market. For Chinese motorcycle companies, they need to make improvements in terms of intellectual property protection and after-sales service in order to be invincible in the fierce market competition.
The analysis of the African motorcycle market in this article is more detailed, but the views and conclusions are worthy of further consideration. First of all, the article combs through the overall situation of the African market, starting with the sales data of Indonesia and other countries, revealing the huge size of the African motorcycle market. This sets the stage for the ensuing discussion and gives the reader a clearer understanding of the context of the African market.
The author mentions the failures of Chinese motorcycle companies in the Vietnamese market and triggers a series of reflections on the performance of Chinese companies in the African market. However, through in-depth research, it is found that Chinese motorcycle companies have not achieved the "absolute king" status in the African market, as the title of the article says, but have been monopolized by the Indian Bajaj Group.
In this regard, I think the article objectively analyzes the reasons for this situation, which involves the competition of second-hand motorcycles, intellectual property issues, and the old problem of Chinese companies in the Vietnamese market - involution. These problems are the deep-seated reasons for the difficulties encountered by Chinese motorcycle companies in the African market, and the solution of these problems will be the key to the future development of enterprises.
At the same time, the article also examines the success factors of Indian motorcycle companies in the African market. Indian motorcycle companies have not faced intellectual property lawsuits, have established a well-established sales network using Indian immigrants, and have experienced improvements in product quality. These are all key factors for Indian businesses to succeed in the African market.
However, I think the article could go further in this section on how Indian companies are navigating these issues and what lessons Chinese companies can learn from them. In addition, it is also worth pondering whether the "local advantage" of Indian companies in the African market means that Chinese companies face "non-local disadvantages" in the global market.
Overall, this article provides an in-depth analysis of the African motorcycle market, but there are still some points of view that deserve further discussion and refinement. Competition in this sector is fierce, and Chinese companies need to innovate more and adjust their strategies in order to gain a larger share of the global market.
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