Top 10 Local Car Manufacturers Making a Difference in Africa 2025

In Summary

• The African automobile market was worth $20.5 billion in 2024, and it is projected to reach $26.3 billion by 2029, showing a CAGR of 5.1%.
• South Africa, Egypt, Algeria, and Morocco are the leading countries in vehicle sales and production, accounting for over 80% of new vehicle sales in Africa.
• Africa has a significantly lower motorization rate than the global average, with only around 44 vehicles per 1,000 inhabitants.
• SUVs are projected to be the largest passenger car segment in Africa.

Deep Dive!!

It took Africa only a little over a hundred years after Carl Benz released the first “vehicle powered by a gas engine” in 1886 to launch its first car manufactured using all-African technology. In 1997, the first car manufactured in Africa, the Izuogu Z-600, was launched in Nigeria by Nigerian engineer Ezekiel Izuogu. Twenty-eight years later, the automobile industry in Africa has grown remarkably into a $20.5 billion industry (as of 2024), with a projected CAGR growth of 5.1% from 2024 to 2029.

The progressive growth in the African automotive market has been attributed to major market growth drivers such as increasing urbanization, supportive government policies, and infrastructure development.

Last year, a report released with 2023 in focus revealed that Africa produced approximately 811,190 passenger cars. The impressive numbers are credited to local manufacturers making notable contributions to the continent's economic development and technological advancement. These companies are not only producing vehicles tailoured to the unique needs of African consumers but are also showcasing the continent's potential in industrial innovation.

With SUVs projected to be the largest passenger car segment in Africa within the next few years, we have highlighted the top ten prominent local car manufacturers in Africa. Check them out!

Here are the top 10 Local Car Manufacturers Making a Difference in Africa 2025 based on market share and units produced yearly.

10. Mureza Auto Company – Zimbabwe/South Africa: Founded in 2019 by Tatenda Mungofa, the pan-African car manufacturer has production plants in Harare, Zimbabwe, and Rosslyn, South Africa. It is owned and operated with support from private investors and partnerships. The company aims to create affordable, African-made vehicles tailored to local conditions. The company’s flagship model, the Prim8, is designed to compete with international brands in the budget car market. Despite being a relatively new player, Mureza is positioning itself as a key contributor to Africa’s growing automotive sector.

9. Birkin Cars – South Africa: Birkin Cars is a South African automobile manufacturer known for producing high-quality replicas of the classic Lotus Seven sports car. Founded by John Watson in 1982, the privately funded company has gained international recognition for its craftsmanship and engineering precision. While catering to a niche market, Birkin Cars continues to showcase South Africa’s ability to produce world-class performance vehicles.

8. Kiira Motors Corporation – Uganda: Kiira Motors Corporation (KMC) is a Ugandan automotive company established in 2014 as a partnership between the Government of Uganda and Makerere University. Headquartered in Kampala, KMC focuses on developing eco-friendly vehicles, including Africa's first hybrid electric vehicle, the Kiira EV Smack, and a fully electric bus, the Kayoola EVS. The company is currently in the pre-mass production phase, with plans to scale up manufacturing shortly. They have received investments worth approximately $40 million to date.

7. Mobius Motors – Kenya: Mobius Motors, founded by British entrepreneur Joel Jackson in 2010, is a Kenyan automotive company that focuses on producing affordable and robust vehicles tailored for the African market. Based in Nairobi, Mobius designs vehicles capable of handling the challenging terrains and road conditions prevalent in many parts of Africa. The company's flagship model, the Mobius II, has gained popularity for its durability and practicality. The company has raised over $50 million in investment and manufactures approximately 500 vehicles yearly.

6. Laraki – Morocco: Laraki is a privately owned Moroccan luxury car manufacturer founded by designer Abdeslam Laraki. Originally specialising in yacht design, the company shifted its focus to high-performance automobiles, introducing models such as the Laraki Fulgura, Borac, and Epitome. These supercars showcase Morocco's ability to compete in the global automotive industry. Despite being a niche manufacturer with limited production, Laraki has gained international recognition for its innovation and craftsmanship.

5. Kantanka Automobile – Ghana: Kantanka Automobile, established by Kwadwo Safo Kantanka in 1994, is a privately owned Ghanaian automotive company that manufactures a variety of vehicles, including SUVs, saloon cars, and pick-up trucks. The company's manufacturing plant is located in Gomoa Mpota in the Central Region of Ghana. Kantanka vehicles are designed to cater to the preferences and needs of the Ghanaian market, promoting the use of locally manufactured products. It produces an average of 250 cars yearly.

4. Wallyscar – Tunisia: Wallyscar is a Tunisian automobile manufacturer founded by brothers Zied and Omar Guiga in 2006 and privately owned by the Guiga family. Based in La Marsa, Tunis, the company specializes in producing compact 4x4 vehicles known for their durability and adaptability to various terrains. Wallyscar has expanded its market beyond Tunisia, with sales reaching countries such as Morocco, France, and Qatar. They produce an average of 600 vehicles yearly.

3. Innoson Vehicle Manufacturing (IVM) – Nigeria: Innoson Vehicle Manufacturing, commonly known as IVM, stands as Nigeria's first indigenous car manufacturer. Established in 2007 by entrepreneur Innocent Chukwuma, the company has its manufacturing plant in Nnewi, Anambra State. IVM produces a range of vehicles, including cars, buses, and trucks, designed to meet the demands of the Nigerian market and beyond. Their vehicles are widely used in West African countries like Mali, Sierra Leone, and Ghana. They produce an average of approximately 10,000 units yearly.

2. BAIC South Africa – South Africa: BAIC South Africa is a joint venture between China’s BAIC Group and the South African government, established to boost local vehicle manufacturing IN 2016. The company operates one of the largest automotive plants in South Africa, located in Coega, Eastern Cape. With over $800 million in investment from the Beijing Automotive Industry Holding Co. (BAIC) Group and the South African government, BAIC SA produces a variety of passenger and commercial vehicles, supporting the country's automotive industry and creating employment opportunities. The company manufactures over 40,000+ units yearly.

1. Peugeot Algeria – Algeria: Founded in 2018, Peugeot Algeria operates a major vehicle production and assembly plant in Oran, producing popular models such as the Peugeot 208 and Peugeot 301. With key investment totalling over $100 million from the Stellantis Group and the Algerian government, the factory is part of Algeria’s broader push to reduce car imports and boost local manufacturing. With a growing production capacity, Peugeot Algeria plays a key role in North Africa’s automotive industry. They produce an average of 75,000 units yearly.

Conclusion

Africa’s automotive industry is on the rise, with local manufacturers playing an increasingly vital role in the continent’s economic and industrial development. These companies are not only providing employment opportunities but also fostering technological advancements tailored to Africa’s unique conditions. By supporting local vehicle manufacturers, African nations can reduce dependence on imports and establish themselves as competitive players in the global automotive market. The success of these manufacturers serves as an inspiration for future innovators, proving that Africa has the potential to drive its own industrial revolution.

However, factors like low purchasing power, poor road infrastructure, and high import duties can hinder the growth of the automotive industry in certain African regions. If checked, the automobile industry in Africa can grow to become one of the highest revenue generation channels in the continent.