Market Trend and Outlook

Tanzania’s vehicle market in July 2023 grows 7.6% after dropping 22.4% in June, reporting 156 new registrations. YTD figures at 1,145 are down 7.1% from the prior year.

Looking at cumulative data up to July 2023 brand-wise, the leader Toyota reports a 33.3% growth while holding 34.2% market share, followed by Isuzu which boomed 431.0%. Nissan reports the worst performance, collapsing 62.7% in yearly sales.

Medium-Term Market Trend

The new light vehicles market in Tanzania is stable in the range between the 2,000 and the 3,000 annual units, still penalized by the easy access of imported used vehicles.

In the last decade, the market performed between the lower peak of 2,035 units in 2016 and the higher of 3,314 in 2013, with 2018 at 2,258 units.  In 2019 the light vehicles market has lost 20.2%, mainly due to a very low Q4, ending the year with only 1,914 sales, the lowest level since 2010.

The arrival of the pandemic in 2020 caused the global automotive market to collapse. This being said the effects on Tanzania’s vehicle market were limited with respect to other countries. In fact in 2020 sales fell only 8.5% to 3,021.

In the following year new light vehicle registrations remained flat compared to the previous year, totaling 3,005 (-0.5%).

Sales finally grew in 2022 reaching a total of 3,153, 4.3% more than the prior year.

Excel Dataset

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You can have access to this service:

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Market Report

The report provides a comprehensive and complete overview of the market competitive environment including information on the sales volumes of cars and light commercial vehicles, market size, market share, and industry trends.

Through our comprehensive global sales database and the expertise of seasoned consultants in this field, we can help you gain further insight into the automotive market trends and base your business decisions on actionable data.

Table of contents

• Country Overview
  • Geography
  • History
  • People & Politics
• Economic Outlook
  • Economy
  • Infrastructure
• Market Outlook
  • Market Heritage
  • Car Passenger’s segmentation
  • LCVs segmentation
  • Car Passengers Body Type mix
  • LCVs Body Type mix
  • Premium segment share
  • Chinese OEMs share
• Key Players
  • Top selling Groups 2022
  • Top selling Brands 2022
  • Premium Brands
  • Chinese Brands
• Market Data By Model
  • Top selling Models 2022
  • Top models by segment and body type
• Key Factors for market Evolution
  • Country development
  • Economic Outlook
  • Customer base evolution
  • Low-Carbon Transition Policy
  • Infrastructure & Investments
• 2023-2028 Volume Forecast
  • TIV evolution by segment
  • Cars and LCVs forecast
  • Segments forecast
  • Premium segment share forecast
  • Chinese OEMs share forecast
  • Forecast by Manufacturer

Price for market research: €2,500

Price for market research + Last 2 Years dataset in excel: €4,000

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Market Trend and Outlook

Tanzania’s vehicle market in 2022 totaled 3,153 sales, a 4.9% increase from the previous year. December grew for the 5th consecutive month, reporting 200 new light vehicle sales (+16.3%).

Looking at cumulative data from 2022 brand-wise, the leader Ashok Leyland reports a 0.2% fall while holding 18.9% market share, followed by Toyota which gained 4.9%. Land Rover reports the best performance, rising 19.5% in yearly sales.

Medium-Term Market Trend

The new light vehicles market in Tanzania is stable in the range between the 2,000 and the 3,000 annual units, still penalized by the easy access of imported used vehicles.

In the last decade, the market performed between the lower peak of 2,035 units in 2016 and the higher of 3,314 in 2013, with 2018 at 2,258 units.  In 2019 the light vehicles market has lost 20.2%, mainly due to a very low Q4, ending the year with only 1,914 sales, the lowest level since 2010.

The arrival of the pandemic in 2020 caused the global automotive market to collapse. This being said the effects on Tanzania’s vehicle market were limited with respect to other countries. In fact in 2020 sales fell only 8.5% to 3,021.

In the following year new light vehicle registrations remained flat compared to the previous year, totaling 3,005 (-0.5%).

Market Trend

Tanzania’s car market this year was unable to recover effectively, and reported double-digit losses for all the second half.

The new light vehicles market in Tanzania is stable in the range between the 2,000 and the 3,000 annual units, still penalized by the easy access of imported used vehicles.

In the last decade, the market performed between the lower peak of 2,035 units in 2016 and the higher of 3,314 in 2013, with 2018 at 2,258 units.  In 2019 the light vehicles market has lost 20.2%, mainly due to a very low Q4, ending the year with only 1,914 sales, the lowest level since 2010.

After such low sales the previous year, in 2020 the market grew slightly, in fact, sales have been 2,015, reporting a 5.3% increase.

In 2021 the year started positively for the Tanzanian market, in fact, in Q1 550 units have been sold, reporting a 2.6% increase in sales compared to Q1 2020, and in Q2 sales started growing extremely quickly, reporting a 175.7% increase in sales with 510 units due to the very low levels of sales experienced in Q2 2020.

In Q3 sales fell 44.6% with just 398 units sold, followed by a loss of 28.5% in Q4 with 361 units sold.

Indeed, Full-Year sales for 2021 have been 1,819, reporting a 6.5% decrease compared to 2020.

Brand-wise, this year the leader Toyota (-14.6%) lost 2.8% market share, followed by Nissan (+0.6%), which gained 1.1% share. Ford (+7.8%) remained in the third spot and gained 2.2% market share.

The most sold model in the country is the Ford Ranger with 301 sales (+8.7%), holding 15.7% market share.

Economic Environment

The economy likely remained downbeat in Q3, despite the lifting of all domestic restrictions in July. The external sector continued to suffer as exports decreased again in annual terms in September, mostly on drop-in service receipts.

Meanwhile, imports also fell, suggesting that domestic demand remained frail. On the other hand, credit growth picked up pace in the same month, boosted by the Central Bank’s accommodative policy, which should have supported domestic demand somewhat. In politics, incumbent president Magufuli won a second term in the elections held on 28 October, which should lead to policy stability and a continued focus on boosting the economy after the pandemic-induced downturn.

Nevertheless, opposition parties called for protests amid claims of voting irregularities, fueling tensions within the country, which could weigh on investor sentiment going forward.

Market Trend

The Tanzanian car market grew slightly in 2020 despite the world-wide COVID-19 pandemic. 

The new light vehicles market in Tanzania is stable in the range between the 2.000 and the 3.000 annual units, still penalized by the easy access of imported used vehicles.

In the last decade, the market performed between the lower peak of 2.035 units in 2016 and the higher of 3.314 in 2013, with 2018 at 2.258 units.  In 2019 the light vehicles market has lost 20.2%, mainly due to a very low Q4, ending the year with only 1.914 sales, the lowest level since 2010.

After such low sales the previous year, Full-Year sales for 2020 have been 2.015, reporting a 5.3% increase compared to 2019.

Brand-wise, this year the leader Toyota (+8.3%) gained 0.8% market share, followed by Nissan (+7.7%), which gained 0.3% share. Ford (+8.5%) remained third and gained 0.5% market share.

The most sold model in the country remains the Toyota Hilux with 285 sales (+11.8%), holding a growing 14.1% market share.

Economic Environment

Tanzania’s economic growth eased to 6.8% year-on-year in the third quarter of 2019, after having expanded at the fastest pace in over a year in the second quarter (Q2: +7.2% year-on-year). The third-quarter moderation was largely driven by ebbing growth in the construction sector. Meanwhile, activity in the agricultural and manufacturing sectors rose at a faster clip compared to the second quarter, buffering the slowdown somewhat.

Economic activity should remain robust next year despite moderating slightly. Buoyant private consumption; strong capital spending, particularly on large infrastructure projects; and a pick-up in government expenditure should underpin growth. However, the large current account deficit and policy uncertainty cloud outlook.

Market Trend

The new light vehicles market in Tanzania is almost stable in the range between the 2 and the 3.000 annual units, still penalized by the easy access of imported used vehicles.

In the last decade the market performed between the lower peak of 2.035 units in the 2016 and the higher of 3.314 in the 2013, with the 2018 at 2.258 units. We noted that the HCVs & Bus market is reporting a different trend with a steady growth and over 2.000 units sold in the 2018, the highest level ever.

In the 2019 the light vehicles market has lost 20.2%, mainly due to a very low Q4, ending the year with only 1.900 sales, the lowest level since 2010.

Toyota is on top of the ranking, as always, but in the last year have lost market share from a record of 52% in the 2014 to the 29% reported in 2019.

In second place Ford with 15.9% of market share and in third Nissan, with 15.9%, in recovery since the 2014, when hit the lowest peak, below 10%.

The top three brands control together over 60% of the market.

Tables with sales figures

In the tables below we report sales for top Brands

Tanzania’s economy expanded at a solid pace in 2018, propelled by solid consumer spending amid robust credit growth and declining inflation; growing tourist inflows; and a strong infrastructure push, which spurred construction activity. On the flip side, strong domestic demand fueled imports, which, along with dwindling traditional exports, translated into a notable widening of the current account deficit.

Growth is set to ease in 2019 but will remain robust nonetheless. Consumer spending will continue to benefit from rising wages and solid credit growth, while fixed investment is sustained by solid infrastructure spending and mining investment. That said, the current account deficit will remain sizable, while unpredictable policymaking could discourage FDI inflows.

Tanzanian new vehicles market is not yet reflecting the country improvements in the economic side, with new vehicles car park heavily fueled by import of used vehicles.

Three factors are actually blocking the potential for new vehicles, the low pro capita income, the poor infrastructure road system and the absence of laws limiting the import of obsolete vehicles.

Looking at the last years sales volume, the market is basically flat at an almost low-level. In the 2017, a marginal growth resulted with volume at 3.324 (+7.5%), including 1.022 HCVs and Bus.

In the 2018, light vehicles sales ended moderately positive, keeping a steady trend for the entire year. Indeed, registrations have increased by 1.9% from the previous year, with 2.290 units sold.

The competitive landscape was still dominated by Toyota, which sold 690 units (+3.3%) with 30.1% of market share. In second place Ford with 384 sales (-1.5%) followed by Nissan with 356 (-2.7%).

Impressive performances were scored by Mitsubishi and Volkswagen, both improving over 25% from the previous year.

Tables with sales figures

In the tables below we report sales for top Brands

Tanzania’s economic activity is expected to have been buttressed by strong mining and quarrying, and manufacturing sectors, in the wake of strengthening prices for the country’s commodity exports. Tanzania was assigned a credit rating by one of the big international agencies for the first time in its history on 2 March; Moody’s gave the country a B1 local- and foreign-currency issuer rating although with a negative outlook.

The growth outlook for 2018 remains bright: the agricultural sector should benefit from more favorable weather conditions, while increased infrastructure spending should lift investment activity. However, the weak banking sector continues to present significant risks to the outlook. FocusEconomics panelists expect GDP to expand 6.5% in 2018.

Tanzanian new vehicles market is not yet reflecting the country improvements in the economic side, with new vehicles car park heavily fueled by import of used vehicles.

Three factors are actually blocking the potential for new vehicles, the low pro capita income, the poor infrastructure road system and the absence of laws limiting the import of obsolete vehicles.

Looking at the last years sales volume, the market is basically flat at an almost low-level. In the 2017, a marginal growth resulted with volume at 3.324 (+7.5%), including 1.022 HCVs and Bus.

At brand-wise, thanks to the absolute leadership among HCVs and Bus sector, Tata has taken the leadership of the entire market with 22.6% of share, ahead of Toyota with 21.3% and Ford with 12.3%.

Tables with sales figures

In the tables below we report sales for top Brands

Despite sluggish private lending, Tanzania’s economy is likely to have expanded at a healthy pace last year on the back of strong infrastructure investment and subdued global oil prices, which more than offset a weaker showing from the agricultural sector due to poor weather.

The economy received a boost in early March 2017 after the Central Bank slashed interest rates from 16.0% to 12.0%, a move advocated by the IMF. The decision is aimed at counteracting the sharp slowdown in private sector credit growth observed last year as a result of greater non-performing loans, and should spur economic growth going forward.

Tanzanian new vehicles market still has a marginal rule in the country as over 95% of vehicles are imported as over-aged used from outside.

The new vehicles are reserved at a small portion of consumer’s and this explain the not existing relation shown in recent years between new sales and economy. However, in the 2016 the new vehicles market was losing further terrain reporting only 3.091 sales (including HCVs and Bus)

The market leader was Toyota dominating the light vehicles segments with 1.236 sales while Tata is the leader of the HCV sector with 877 sales (including few pick ups and cars).

Tables with sales figures

In the tables below we report sales for top Brands

The Tanzanian government announced the discovery of an onshore natural gas deposit worth an estimated USD 6 billion earlier this year. Furthermore, Tanzanian President John Magufuli confirmed that French energy company Total has agreed to build a USD 4 billion oil pipeline connecting oil fields in Uganda to a Tanzanian port.

The announcement was a huge victory for Tanzania because Total was debating whether to construct the pipeline through Kenya instead. Aside from the economic benefits stemming from the construction, the pipeline could connect oil wells in Tanzania, should companies decide to exploit them.

The government is pushing for construction to begin promptly to ensure that the pipeline does actually run through Tanzania.

New vehicles market is very little at few thousand units as the current level on income does not support the expense on new vehicles, In addition the still low-level of road infrastructure suggest to invest money in already used vehicles, used imported from Japan (via UAE).

However the market should show improvements while is declining. Indeed in the 2015 total vehicles sales have been 3.533, including 1.139 HCVs, losing terrain from the previous year.

The market leader is Toyota dominating the industry with 54.8% of market share and 1.593 sales in the year. Ford was second with 13.6% of share and Nissan third with 9.5%.

Toyota Hilux dominates the market with 27.5% of market share ahead of the Ford Ranger and Toyota Land Cruiser.

Tables with sales figures

In the tables below we report sales for top Brands