Global Automotive Export Resource Guide | Page 254

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Zambia imports about 45,000 vehicles annually, of which one in twelve is a new vehicle. Six percent are individual buyers, fifteen percent are corporate, forty percent are government, and the rest are non-governmental organizations and embassies. The high preference for second hand motor vehicles and spare parts reflects the purchasing power of the emerging economy. These second hand vehicles are imported from Japan, Germany, the United States, United Kingdom, Singapore and United Arab Emirates.

American brands face competition with Japanese models, particularly the Toyota brand pick-up trucks and four-wheel drive vehicles that dominate the marketplace, but American brands are well-received in part due to their perceived durability. Given the poor conditions of most Zambian roads, buyers value vehicles with spring suspension systems.

Best Prospects for U.S. Exports

Heavy Duty Market

Commercial vehicle and heavy-duty equipment sales in Zambia are driven by growth in Zambia’s large mining industries and expansion in construction. Heavy equipment includes heavy-duty vehicles specifically designed for executing construction and mining tasks, including tractor trailers, lift trucks, loaders, cranes, container trailers, and other earth moving equipment. The mining transportation sector has become more competitive with the arrival new market entrants. However, the Zambian government introduced a new mining tax regime in January 2019 and announced it will introduce a new sales tax to replace the VAT tax in April 2019.

Specialty Equipment Market

There are no restrictions to customizing vehicles in Zambia, provided it meets the Zambian Bureau of Standards quality and safety standards for roadworthiness.

Used and Remanufactured Market

The average age of Zambia’s motor vehicle fleet has increased from 13 years in 2006 to 17 years in 2014 (latest data available), according to a Zambian research institute. This has fueled demand for used automotive parts. There are no restrictions on the importation of remanufactured or used motor vehicle parts in Zambia. However, thirty percent import duty is charged on motor vehicles and parts.

For Information about exporting to Zambia contact:

Vedruna Santana

U.S. Embassy Lusaka, Zambia

Commercial Specialist - Auto & Smart Mobility Team

[email protected]

+260-211 357321

Market Trends & Demand

best prospects