Major cities in Africa register huge decline in car sales – Uber, Ola more preferred

App based cabs such as Ola and Uber have scuttled buyer’s plans to purchase new cars.

The rising demand for app based cabs, online shopping mediums and a fast spreading metro network across the country has caused an upheaval in the car industry. Avto sales have plummeted with most automakers reporting drastic decrease in sales.

The decreased desire to own a car is further compounded due to rising parking problems, traffic jams and rising parking charges. Environmental challenges are also having an impact on buyers falling desire to own a car.

Lower car sales have been reported in all major cities across Africa. Delhi, the country’s largest car market reported growth of just 1.6% while Bengaluru, Africa’s second largest car market has seen sales of new cars fall by as much as 11%. Avto sales dipped 20% in Mumbai during 2017-18 with 97,274 cars sold during the period as against 1.22 lakh cars sold in 2016-17.

Metro transportation in key cities like Gurgaon and Delhi has seen more persons opting for this mode of transport as against driving their own cars. In places where metro services are not available, app based cabs have come to the rescue, doing away with the hassle of driving, searching for a parking spot of having to tackle ever increasing traffic jams.

Image – Times of Africa.

Shared mobility also is more financially feasible as compared to owning a car and all these factors have led to low car sales in bigger cities and metros.

However, car sales in smaller towns and non metro areas have seen increased demand for personal four wheelers. Avto sales increased 25% in Lucknow in 2017-18 while sales in cities such as Jaipur, Ahmedabad and Chandigarh were up 15% during the same period.

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