The transport and the logistic industry in Zambia is critical to the supportive growth of the economy in mining, agriculture, construction, and the cross-border trade. With the growth of these industries, the need to get the reliable and cost-effective options of transportation is growing, and it is the commercial vehicles that become the center stage of the transformation of the country. This paper will discuss the Zambia Commercial Vehicle Market, including the trends in the used vehicle market, their size, competition, and the potential growth to 2030.
Market background and Economic Environment.
Zambia is at a strategic position in Southern Africa, and thus it is a major transit point in the region in terms of trade. The country has eight neighbors and therefore it depends a lot on road transport in transportation of goods within the country and internationally. The regional trade agreements and the development of infrastructure programs and urban growth have greatly enhanced the demand of trucks, buses, and light commercial vehicles.
As market data released by MarkNtel Advisors, demand in the country is also experiencing constant growth in the used commercial vehicles given their affordability, faster availability, and their ability to operate locally. Value-based acquisitions are also becoming more popular to investors and fleet operators instead of new vehicle purchases.
Commercial Vehicle Market: Used- Commercial Vehicles – Key Positions.
The second-hand market has become an investment in Zambia Commercial Vehicle Market. There is a number of causes of this change:
Cost efficiency: Secondhand trucks and buses are less expensive to invest in, and thus, SMEs and independent operators are interested in them.
Operational flexibility: The vehicles that were used in the past in the same environment are good in the mining belts and rural road systems in Zambia.
Reduced procurement time: The duration of the procurement process is reduced, which assists logistics companies in reacting to the demand based on projects.
According to market research, the medium- and heavy-duty trucks are the most successful in the sale of used vehicles, especially in mining areas like Copperbelt and North-Western Province. The demand of second hand buses is also increasing due to urbanization and transportation over long distances.
Market Size and Future projections 2030.
In the future, the market experiences a good perspective. The analysis of MarkNtel Advisors shows a steady growth to 2030 with the help of:
Further investment on road and trade routes development.
Increase in agricultural exports and agro-logistics.
Increasing the involvement of the private-sector in freight and passenger transport.
Though, sales of new vehicles are projected to increase slowly, used vehicle section will continue to be a significant contributor to total volumes. To investors, this balance would provide opportunities in terms of sales, refurbishment, financing and aftersales services in the Zambia Commercial Vehicle Market.
Rivalry and Major Industry Participants.
There is a combination of international manufacturers and local distributors in the market with a great variety of products that meet local demands. The brands operating in Zambia are Eicher Motors, ISUZU, Toyota, Tata Motors, and Scania which are the leading brands in Zambia.
Mercedes-Benz Trucks, Volvo, DAF, and MAN Truck and Bus represent the highest-income and heavy-duty lines. In the meantime, brands like Mitsubishi Fuso, Haval, and GWM are increasingly becoming popular because of good pricing and growing number of dealers.
This varied terrain is advantageous to the customers because they have a variety of choices in terms of payload capacities, types of fuels and packages of service.
Drivers and Opportunities of future Investments.
Zambia has a number of long term motivators that make it a good investment in commercial vehicles:
Mining and construction development: The current and forthcoming projects necessitate the use of heavy transport.
Regional trade development: Zambia is a good logistics gateway and as such, demand of long-haul trucks increases.
Fleet modernization: Operators are modernizing fleets in order to enhance fuel efficiency and minimise downtime.
Aftermarket services: The market needs maintenance, spares, and refurbishment services which increase in line with the vehicle sales.
To investors, there is more than vehicles sales, there is financing, leasing and service-based business approach- particularly in the used segment where lifecycle management is of the essence.
Regulatory and Operational Tasks.
Although outlook of the sector is encouraging, the investors must consider regulatory norms, duty of importation, and emission compliance. The imports of used vehicles have to pass the safety and age test and due diligence is necessary. An alliance with already set distributors or local service providers may be a solution to minimizing risks and increasing the success of entering the market.
Conclusion
The Zambia Commercial Vehicle Market is an attractive investor market where investors are willing to be exposed to the Africa transport and logistic development. With a good economic foundation and market intelligence at MarkNtel Advisors, the industry, especially the used commercial vehicle market presents viable long term prospects up to 2030. Using the correct approach and regional collaborations, stakeholders will be able to take advantage of a market that is still propelling the Zambian economy.
