Income And Heavy Industry Growth Offer Widespread Opportunities
BMI sees favourable conditions for growth in both passenger cars and commercial vehicles in Mozambique. Driving passenger car sales over the next five years will be a burgeoning middle class and higher levels of disposable income.
Meanwhile, the commercial vehicles (CV) segment is set to benefit from Mozambique's infrastructure sector, which we believe holds one of the strongest growth outlooks across the Sub-Saharan Africa (SSA) region. Investment in mining and more recently gas exploration is necessitating the construction of support infrastructure, with an estimated USD30bn in projects in the pipeline. Beyond industrial demand for commercial vehicles, BMI also expects to see an uptick in demand from the urban transportation sector.
Such is the demand for vehicles in Mozambique that the country's fleet size has grown by over 832% between 1990 and 2012, to 487,000 units, according to estimates from the National Land Transport Institute (INTT). In terms of segments, light vehicles (comprising of passenger cars and light commercial vehicles) accounts for nearly 63% of the total fleet, followed by a 21% share For heavy vehicles. The remainder is made up of tractors, trailers and motorcycles.
|Equal Segment Growth|
|Mozambique Vehicle Sales By Segment|