Car sellers in Uganda focusing more on customers

August 7, 2015

Car dealers in Uganda have concrete efforts and plans for a customer-centric strategy.In the latest Uganda’s Automotive Industry market research report that your blogger obtained,provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest second hand car sellers. Although the research isn’t published publicly, it contains the largest collection of industry reports on industry’s supply chain, economic drivers and key buyers and markets. Uganda’s automotive industry encompasses a range of smaller industries that have performed variably over the years.New car sales spiked in 2014, as the pent-up demand stemming from delayed purchases during the global financial crisis was released. Although falling since the beginning of 2015, the continued strength of new car sales has led to growth for motor vehicle wholesalers and service agents, as they have been servicing an increasing number of vehicles on the road. However, local motor vehicle sellers like Spear Motors and Toyota Uganda have struggled, as consumers have looked to more affordable, fuel-efficient imported vehicles rather than petrol-guzzling locally manufactured cars.

Due to these contrasting effects, industry revenue is expected to rise by an annualized 4%.One company operating in East Africa (I cannot name as this is not PR blog) promised to increase its level of service quality for its customers through a set of initiatives called “Customer Complete Care” that was launched in May this year, including 24-hour assistance.“In an effort to create a strong customer base, we have committed to offer quality services as best as we can. We expect that this strategy will grow our customers’ confidence,” one of the car dealers told your blogger last evening.Another dealer, who has spent 10 years of his career at various car sellers offices in Uganda and has worked as the managing director for one of the company,told me it was generally business as usual for the African new vehicle market. The Toyota brands ruled the roost, SUVs continued to boom. But of course, every month brings its share of surprises.“The prices of luxury cars have come down and they have a wider array of vehicles in different segments, so they’re starting to drift down into areas where they weren’t historically,” the MD added.“

Uganda is now in its 23rd year of economic growth it makes a difference to people’s standard of living and that’s reflected in the car fleet,” said another vendor.It was the seventh time in the past eight years Uganda have bought more than 100,000 cars in a calendar year, and the third year in a row it has topped the 1.1 million mark.Uganda’s automotive industry encompasses each level of the passenger vehicle supply chain, from importers through to wholesaling and retailing. The industry also takes into account repair and maintenance operators. Local importers especially in Kampala have struggled over the past two years due to the falling value of Uganda shilling for much of the period, lowered import protections and consumers’ shifting demand towards smaller second hand imported cars. This has not been detrimental to all segments of the industry though, as sales growth for imported vehicles has enabled wholesalers and some dealers to offset much of the manufacturing decline. Over the five years through 2013, overall industry revenue is forecast to reach $200 million, following annualized growth of 4%.

Contador Harrison