Here’s what you should be aware of:
- The research highlights significant differences in automobile ownership between various areas and population segments, indicating that South Africa has the highest rate at 50 percent.
- Based on data provided by the Uganda Revenue Authority, the registration of motor vehicles decreased by approximately 7.7%, dropping from 40,993 units in 2021-2022 to 37,856 units in 2022-2023. In comparison with the figures from 2020-2021, this represents around 5.9% of the overall vehicle registrations during that earlier timeframe.
In Uganda, fewer than 13 percent of people own cars, which is comparable to several other East and West African nations like Burkina Faso, Ethiopia, and Rwanda. According to the report, significant differences exist in vehicle ownership between various areas and population segments, with South Africa topping the list at 50 percent.
The research indicates that car ownership differs considerably based on income levels, where 45 percent of participants in the top earnings category own cars as opposed to only 11 percent within lower-income segments. Additionally, age is a crucial factor, showing an increase in vehicle possession from 17 percent amongst individuals aged 18-25 up to 36 percent for people who are 46 years old and older.
The differences in automobile ownership throughout Africa underscore both the potential for expansion and the obstacles present within the area. Grasping these local trends is crucial for businesses aiming to tap into the growing middle-class population across the continent, according to Mr. Julien Garcier, the managing director of the research firm.
The research conclusions draw upon information gathered from Sagaci Research’s SagaCube and SagaBrand databases. These resources monitor consumer actions and brand effectiveness for more than 2,000 brands within 150 different product classifications throughout Africa.
During our conversation with Mr. Gilbert Wavamuno, who serves as the managing director at Spear Motors — a dealership for Mercedes-Benz in Uganda — he mentioned: “In Africa, the top choices when it comes to vehicles are undoubtedly Toyotas and Mercedes-Benzes; Toyota appeals due to affordability, whereas Mercedes provides an experience marked by luxury and high standards.”
Regarding the minimal vehicle ownership in Uganda, Mr. Wavamuno pointed out that this can be largely attributed to the dominance of the used-car market within the nation.
“Nevertheless, Mercedes and Toyota can be found in both the new and used car markets, and our authorized service centers offer customers assurance,” he noted.
Mr. Wavamuno additionally emphasized the crucial role that official service centers play in bolstering the appeal of these brands.
He mentioned that people generally opt to interact with authorized personnel for maintenance and repairs, hence our robust network of service centers across the nation.
He believes that additional studies would be necessary to grasp the key elements behind the limited automobile ownership in Uganda.
“This is a complicated matter with numerous contributing elements,” he further stated.
The SAGACI Research report underscores the difficulties encountered by vehicle manufacturers in Uganda and emphasizes the necessity of creative approaches to boost automobile ownership within the nation.
URA statistics
Based on data provided by the Uganda Revenue Authority, the registration of motor vehicles decreased by approximately 7.7% from 40,993 units in 2021-2022 to 37,856 units in 2022-2023. In comparison with the figures from 2020-2021, the number of vehicle registrations in 2022-2023 accounted for around 5.9% of the total during that earlier timeframe.
Due to global upheavals such as the pandemic caused by COVID-19 and the ongoing Russia-Ukraine conflict, car prices have surged. Additionally, Uganda’s prohibition on imported vehicles more than 15 years old has probably influenced vehicle registration numbers. Nonetheless, station wagons continued to be favored, with approximately 23,353 units being registered each year despite these obstacles.
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