Ethiopia Used Car Market Size (2024 - 2029)

The Ethiopia Used Car Market is poised for growth over the forecast period, driven by factors such as the quality of used cars, a significant expatriate population, and increasing demand for new and luxury vehicles. Despite challenges like price discrepancies and lack of standardization, the market is expanding due to rising disposable incomes, shorter car ownership durations, and a shift from two-wheelers to compact cars. The emergence of organized participants has helped build trust, while internet-based ride-hailing services and online trading platforms are enhancing market dynamics by offering better value-added services. Although the market is still developing, it is expected to gain prominence in the coming years.

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Market Size of Ethiopia Used Car Industry

Ethiopia Used Car Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 471 Million
Market Size (2029) USD 549.89 Million
CAGR (2024 - 2029) 2.50 %
Market Concentration Medium

Major Players

Ethiopia Used Car Market Major Players

*Disclaimer: Major Players sorted in no particular order

Ethiopia Used Car Market Analysis

The Ethiopia Used Car Market size is estimated at USD 471 million in 2024, and is expected to reach USD 549.89 million by 2029, growing at a CAGR of greater than 2.5% during the forecast period (2024-2029).

Over the medium term, factors such as the quality of used cars, the large number of expatriates, and demand for new and luxury cars are expected to stand as primary driving factors of the market. However, price discrepancies, lack of standardization, and others are expected to act as major restraints to the growth of the market.

The introduction of organized participants into the market has addressed the trust deficit that has plagued the used car industry in those countries for decades. Additional factors driving market expansion include rising disposable income levels, rising consumer demand for luxury automobiles, shorter car ownership durations, expanding import-export, and a growing inclination among two-wheeler owners to upgrade to tiny and compact cars.

The rapid development of internet-based ride-hailing services has contributed to transportation in cities and, at the same time, has significantly impacted existing travel modes in cities. Ride-hailing services significantly use used cars for their services, which in turn is anticipated to witness major growth in the market.

Additionally, the better value-added services provided by online used car trading platforms over the conventional used car selling methods have significantly attracted buyers toward the used car market over new vehicles. These value-added services provide peace of mind to the customers and aid in the growth of the car use market in the country.

However, the market is still in the growth phase and is projected to witness prominence during the forecast period.

Ethiopia Used Car Industry Segmentation

A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. A certified pre-owned (CPO) vehicle, on the other hand, is a pre-owned vehicle that has been extensively inspected (pre-purchase inspection) and expertly reconditioned.

The Ethiopia used car market is segmented into vehicle type, vendor type, and fuel type. Based on the vehicle type, the market is segmented into hatchbacks, sedans, sports utility vehicles, and multi-purpose vehicles. Based on the vendor type, the market is segmented into organized and unorganized. Based on the fuel type, the market is segmented into gasoline, diesel, electric, and alternative fuel vehicles.

For each segment, the market sizing and forecast have been done based on the value (USD).

Vehicle Type
Hatchback
Sedan
Sport Utility Vehicles (SUVs)
Multi-Purpose Vehicles (MUVs)
Vendor Type
Organized
Unorganized
Fuel Type
Gasoline
Diesel
Electric
Alternative Fuel Vehicles
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Ethiopia Used Car Market Size Summary

The Ethiopia used car market is experiencing a phase of growth, driven by factors such as the increasing quality of used cars, a significant expatriate population, and a rising demand for new and luxury vehicles. The market is becoming more organized with the introduction of digital platforms that enhance customer trust and offer value-added services, such as online financing and detailed vehicle information. These advancements are attracting tech-savvy consumers who prefer seamless online transactions and personalized recommendations. The growth of internet-based ride-hailing services is also contributing to the demand for used cars, as these services rely heavily on such vehicles. Despite challenges like price discrepancies and lack of standardization, the market is poised for expansion, with online sales gaining popularity among younger consumers seeking convenience and competitive pricing.

The market is characterized by a significant presence of hatchback and sedan cars, which hold a substantial share of the revenue. The demand for these vehicle types is fueled by their affordability, comfort, and suitability for the evolving family structures in urban areas. The Ethiopian government's collaboration with Volkswagen to expand vehicle assembly and dealership facilities is expected to further stimulate market growth. Key players in the market, such as Megebeya.com and Cars 2 Africa, are actively enhancing their online presence and adopting growth strategies to capture a larger market share. Recent government policies, including the introduction of used car import duties and investment incentives, are shaping the market dynamics, influencing both supply and demand trends.

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Ethiopia Used Car Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increased Demand For Used Cars Compared To New Cars

    2. 1.2 Market Restraints

      1. 1.2.1 Trust And Transparency In Used Car Remained A Key Challenge For Consumers

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value - USD)

    1. 2.1 Vehicle Type

      1. 2.1.1 Hatchback

      2. 2.1.2 Sedan

      3. 2.1.3 Sport Utility Vehicles (SUVs)

      4. 2.1.4 Multi-Purpose Vehicles (MUVs)

    2. 2.2 Vendor Type

      1. 2.2.1 Organized

      2. 2.2.2 Unorganized

    3. 2.3 Fuel Type

      1. 2.3.1 Gasoline

      2. 2.3.2 Diesel

      3. 2.3.3 Electric

      4. 2.3.4 Alternative Fuel Vehicles

Ethiopia Used Car Market Size FAQs

The Ethiopia Used Car Market size is expected to reach USD 471 million in 2024 and grow at a CAGR of greater than 2.5% to reach USD 549.89 million by 2029.

In 2024, the Ethiopia Used Car Market size is expected to reach USD 471 million.

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