The rise of African-made cars: Can local automakers take on the global giants?

A quiet industrial revolution is unfolding across Africa. From the deserts of Morocco to the streets of Lagos and the auto plants of South Africa, a new generation of carmakers is steering the continent toward self-reliance.

After decades of importing vehicles from Toyota, Mercedes-Benz, and Nissan, Africa is building its own. Fueled by government incentives, youthful innovation, and growing demand for affordable cars suited to African roads, local manufacturers are gaining ground. From Nigeria’s Nord Automobiles to Kenya’s Mobius Motors and Morocco’s booming export hubs to South Africa’s electric vehicle shift, the continent is reshaping its automotive destiny.

African Cars, built by Africans for Africa

In Nigeria, the federal government rolled out a ₦20 billion ($26 million) credit scheme via CreditCorp, offering low-interest loans to over 10 auto firms, including Peugeot, Nord, and ANAMMCO. The goal: stimulate domestic production and make new vehicles affordable for the average Nigerian.

“This credit scheme will encourage Nigerians to patronise locally manufactured vehicles,” said Joseph Osanipin, Director General of the National Automotive Design and Development Council. “It is a strategic move to boost the sector and our economy.”

Further south, South Africa is pushing hard into new energy vehicles (NEVs). Under its Just Energy Transition (JET) plan, the government is investing ZAR 128.1 billion ($6.84 billion) from 2023 to 2027 in EV infrastructure, battery manufacturing, and subsidies. Finance Minister Enoch Godongwana recently announced a 150% investment allowance for electric and hydrogen-powered vehicle production beginning March 2026.

In North Africa, Morocco has emerged as a regional automotive powerhouse. Backed by strong government policy and free trade zones, Morocco has become a key export hub for Renault and Stellantis, exporting over 700,000 vehicles in 2023. The industry now contributes more than 20% of Morocco’s total exports, creating over 220,000 jobs and positioning the country as a global tier-one supplier.

Local talent as the real power?

Africa’s biggest asset is its people. In Kenya, Mobius Motors is rethinking mobility with rugged, affordable SUVs like the Mobius II, designed for both rural dirt roads and urban congestion. In Nigeria, Nord Automobiles, led by CEO Oluwatobi Ajayi, runs a vertically integrated plant in Lagos and is constructing a larger facility in Akwa Ibom to meet rising demand.

“We are not just assembling cars; we are building an ecosystem,” said Ajayi. “Africa deserves vehicles tailored to its people, roads, and ambitions.”

Morocco’s success has also been talent-driven. Through public-private partnerships and vocational training programs, the country has created a skilled labor force that supports not only car assembly but also component manufacturing, R&D, and export logistics.

Big Market, Bigger Dreams

The African auto market is projected to grow from $21.55 billion in 2025 to $27.63 billion by 2030, expanding at a 5.1% compound annual growth rate. Rising incomes, population growth, and policies that prioritize local production are the drivers.

In 2023, South Africa’s automotive exports hit R270.8 billion ($15.3 billion), a 19.1% increase from the previous year. The industry now supports over 110,000 direct jobs and hundreds of thousands more indirectly.

In Nigeria, the push for local manufacturing could slash the country’s $5 billion annual vehicle import bill, conserving foreign exchange and boosting industrial capacity.

Bumps in the road: Power, policy, and parts

Still, the path forward is far from smooth. Most African manufacturers battle inconsistent power supply, underdeveloped logistics, and high production costs. Generators often run longer than machines. Raw materials and components are still largely imported, raising costs and exposing companies to currency risks.

Policy inconsistencies remain a major hurdle. Import tariffs, local content rules, and industrial policy shift with changing governments, undermining investor confidence. And while many countries offer incentives, navigating regulatory frameworks is slow and complex.

Electric vehicles: A new frontier

EVs present a chance for African nations to leapfrog outdated technologies. South Africa is leading the charge, with its mineral wealth (platinum, manganese, lithium) fueling battery ambitions. Morocco, too, is attracting EV players like BYD and Tesla, thanks to strategic free zones and trade ties with Europe.

But the EV ecosystem is still fragile across the continent. Charging stations are scarce, electricity access is unreliable, and vehicle prices remain out of reach for most.

Nevertheless, governments are acting. Rwanda has cut EV import duties. Kenya is piloting charging networks. South Africa is investing in lithium battery plants. The race has started.

Can Africa’s automakers compete globally?

Not yet, but that’s not the point. Africa’s automakers are playing a long game. They know they can’t match Toyota’s scale or BMW’s R&D budget overnight. But by focusing on local relevance, affordability, and durability, they’re building regional loyalty and redefining mobility in their own terms.

Regional trade could be the accelerant. The African Continental Free Trade Area (AfCFTA) opens access to over 1.4 billion people, enabling manufacturers to expand across borders and achieve economies of scale.

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