DP World drives seamless automotive growth across sub-Saharan Africa

DP World has introduced a comprehensive logistics and market-entry solution designed to overcome the longstanding challenges faced by automotive original equipment manufacturers (OEMs) aiming to expand in sub-Saharan Africa

Sub-Saharan Africa is set to become one of the fastest-growing automotive markets globally, with vehicle demand forecasted to rise by 28.5% by 2030. This growth is fueled by increasing incomes, urbanisation, and booming intra-African trade. However, despite the region representing about 18% of the world’s population, it accounts for only around 1% of global vehicle sales. Global OEMs have struggled to grow in the region due to unreliable logistics infrastructure, complex regulations, and inconsistent parts distribution.

DP World’s new turnkey offering marks its first automotive hybrid model in sub-Saharan Africa, combining contract logistics with customised market-entry and expansion services through a single integrated platform. This service provides nationwide delivery to most dealerships within 24 to 48 hours, a digital dealer portal featuring SKU-level inventory visibility, real-time tracking, automated ordering, and integrated payments.

Market entry success 

The solution was successfully tested with Foton Motor, a prominent Chinese commercial vehicle manufacturer. By utilising DP World’s end-to-end support platform, Foton swiftly launched aftermarket operations for heavy commercial vehicles in South Africa, encompassing warehousing, nationwide distribution, regulatory compliance, and digital dealer enablement. This fast market entry gave Foton South Africa a competitive edge with an integrated service network, helping to build early customer trust and engagement.

Fu Jun, president of Foton International at Foton Motor Group, added, “Growing our presence in South Africa is a priority for Foton, and our work with DP World has played an important role in making that possible. Their support with unlocking market and contract logistics services has helped make our aftermarket operations efficient and straightforward, allowing us to concentrate on serving our customers and building our business.”

The hybrid model also enables OEMs to gain a first-mover advantage in a market where aftermarket parts are often dominated by informal suppliers and grey imports. By providing a dependable service network, OEMs like Foton can establish trust, secure long-term customer loyalty, and reduce counterfeit parts risks, all while benefiting from a single point of contact and accountability within the region.

“The automotive industry’s outlook for Africa is changing fast. The question is no longer whether to enter the market, but how to do it effectively. With extensive infrastructure across the region, and deep expertise in complex logistics and market solutions, DP World is ideally placed to support international automakers looking to enter or expand into one of the world’s fastest-growing automotive markets,” stated Mark Rylance, chief operating officer for Logistics at DP World Sub-Saharan Africa.

DP World plans to develop further innovative solutions to assist more OEMs entering sub-Saharan African markets in the coming years as it scales its services to meet the rising demand for commercial and passenger vehicles across the region.