The automotive aftermarket is one of the key sectors of opportunities in Africa – not just for Germany, but for many global automotive nations as well. However, many international automotive firms face challenges when doing business in Africa as markets function differently compared to other parts of the world – and within Africa itself. The typical route to market is one example: while consumers in markets like Nigeria tend to buy parts from retailers, consumers in some East African countries – like Uganda here – tend to go for the more convenient option of buying from workshops directly. This changes dynamics in decision making, of which automotive suppliers need to be aware to efficiently position their brands in the market.

1. 19/06/2020 1© africon GmbH 2019
Source:africonresearch(2019)
Route to Market – IAM Uganda
Contrary to markets in West Africa, consumers in Uganda
tend to buy their parts from workshops instead of retailers.
End customers
(private individuals, corporates, fleet owners etc.)
Authorized importers & distributors
(e.g. VAG Motors, Mandela auto spares
etc.)
Authorized Sub
Dealers
Local semi formal
market
(e.g. Kiseka)
Unauthorized importers
(incl. used, fake, non-fake
parts)
Workshops & mechanics
(in-house corporate, petrol station workshops, informal
mechanics etc.)
Note: 90% of spare parts reach end
customers via workshops
Medium to large fleets
(logistics companies, other
corporate fleets)
Authorized importers & distributors
(e.g. VAG Motors, Mandela auto spares
etc.)
Smaller fleets
(logistics companies, other
corporate fleets)
Workshops &
mechanics
Unauthorized
importers
(incl. used and fake
parts)
Local semi formal market
(e.g. Kiseka)
The bigger the fleet, the higher the
chance that the company imports directly
PC IAM parts CV IAM parts