Report Coverage
This report focuses on the motor vehicle industry, including dealers, importers, exporters, parts manufacturers, and vehicle finance organisations. It includes information on car and tyre production and imports, most popular ranges, trade and factors that influence the industry. There are profiles of 28 companies including local operations of South African and international companies, such as Barloworld Equipment and Bridgestone, dealerships such as Naledi Motors and Webb’s Motors, fitment centres such as Mega Tyre and Taurus Batteries, and parts companies including Earthmoving Replacement Parts.
Introduction
This report focuses on the motor vehicle industry, including dealers, importers, exporters, parts manufacturers, and vehicle finance organisations. Botswana’s motor industry is largely an importer of vehicles, with new vehicles mostly imported from South Africa and second-hand vehicles from Japan. In 2020, 41,733 vehicles were registered (representing vehicle sales) compared to 67,434 in 2019. The decline is attributed to the pandemic. In Q4 2020, first time registration increased by 21% compared to the previous quarter. Of these, 87.7% were used vehicles, 18.2% were new vehicles and 0.1% were rebuilt vehicles. There has been increased demand for second hand cars imports, with 72.8% of used imports coming from Japan and 17.3% from South Africa. The tyre industry in Botswana is composed of fitment, franchised shops and retail outlets. Major fitment and franchised shops are mostly representatives of South African companies and there are a number of locally-owned and foreign-owned outlets. The tyre industry in Botswana is largely import-driven with no new tyre manufacturing taking place, although retreading takes place at a small scale. During 2020 Botswana imported US$36m of tyres, up from US$35.6m in 2019.
Strengths
• .Strong support from government financing agencies.
• Botswana’s proximity to the South African automotive market.
• Good labour-employer relations.
• Manufacturers enjoy one of the most competitive tax regimes in the region.
Weaknesses
• Fuel imports from South Africa lag behind international quality standards.
• Limited market size.
• Long procedure of licencing car dealers.
• No clear policy and incentives for production of electric vehicles.
• No fuel refineries.
• Shortage of highly specialised skills.
Opportunities
• Dealer Finance in the used vehicle Asian market.
• Increase in imports of used Asian vehicles
• Increase of automotive components exports to South Africa and the African region.
• Manufacture of retreads (excluding passenger vehicle tyres).
• Manufacture of tyres especially for export.
• Most trucks that transport goods into Botswana from South Africa and the region are foreign registered, and there is a need for more local investors in trucking to the enter the cross-border market.
• Opportunities in the public transport system particularly the minibus sector.
• The African Continental Free Trade Area offers tyre manufacturers an opportunity to export to the rest of Africa.
Threats
• Fluctuation of the local currency against the dollar can cause price increases of vehicle and imported inputs in the manufacturing of automotive components.
• Potential water shortages may impact the manufacture of tyres.
• Rising costs of utilities and labour costs.
Outlook
Bank of Botswana forecasts 6% GDP growth in 2021 following a contraction of 7.7% in 2020. The automotive sector relies heavily on financial institutions for the granting of credit for the purchases of vehicles. Since the start of the pandemic, financial institutions had taken a cautious approach to granting loans. A number of financial institutions such as Letshego, Access Bank (formerly BancABC) and First Capital Bank are running personal loan promotions with increased loans amounts and longer repayment periods. Industry players expect an increase in demand for new and used vehicles, which will filter into the tyre industry. Construction and mining tyres demand is anticipated to grow. The growing number of construction projects being undertaken in Botswana due to the rise in urbanisation is likely to fuel growth in sales of tyres used on construction vehicles. The World Bank in June 2020 approved a US$250m designed to support reforms to strengthen private sector development (including automotive components manufacturing) and promote economic recovery.
The Motor Vehicle Industry in Botswana
2021
Full Report
R 6 500.00(ZAR) estimated $341.60 (USD)*
Industry Landscape
R 4 550.00(ZAR) estimated $ 239.12 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY INFORMATION | 1 |
| 3. | DESCRIPTION OF THE INDUSTRY | 2 |
| 3.1. | Industry Value Chain | 6 |
| 3.2. | Geographic Position | 6 |
| 4. | SIZE OF THE INDUSTRY | 7 |
| 5. | STATE OF THE INDUSTRY | 8 |
| 5.1. | Local | 8 |
| 5.1.1. | Trade | 16 |
| 5.1.2. | Corporate Actions | 18 |
| 5.1.3. | Regulations | 19 |
| 5.1.4. | Enterprise Development and Social Economic Development | 21 |
| 5.2. | Continental | 22 |
| 5.3. | International | 28 |
| 6. | INFLUENCING FACTORS | 33 |
| 6.1. | COVID-19 | 33 |
| 6.2. | Economic Environment | 34 |
| 6.3. | Rising Input Costs | 34 |
| 6.4. | Government Incentives and Support | 34 |
| 6.5. | Environmental Concerns | 35 |
| 6.6. | Electric Cars | 36 |
| 6.7. | Clean and Efficient Fuels | 36 |
| 6.8. | Tyres | 36 |
| 6.9. | Labour | 37 |
| 7. | COMPETITION | 38 |
| 7.1. | Barriers to Entry | 39 |
| 8. | SWOT ANALYSIS | 40 |
| 9. | OUTLOOK | 41 |
| 10. | INDUSTRY ASSOCIATIONS | 41 |
| 11. | REFERENCES | 42 |
| 11.1. | Publications | 42 |
| 11.2. | Websites | 42 |
| APPENDIX 1 | 44 | |
| Summary of Notable players | 44 | |
| COMPANY PROFILES | 47 | |
| Auto World (Pty) Ltd | 47 | |
| Bamangwato Motors (Pty) Ltd | 49 | |
| Barloworld Equipment Botswana (Pty) Ltd | 51 | |
| BB Motors (Pty) Ltd | 53 | |
| BH Botswana (Pty) Ltd | 55 | |
| Bridgestone Botswana (Pty) Ltd | 57 | |
| Buffalo Treads (Botswana) (Pty) Ltd | 59 | |
| Car World (Pty) Ltd | 60 | |
| Carfil Services (Pty) Ltd | 61 | |
| Chouhan Motors (Pty) Ltd | 63 | |
| Commercial Motors (Pty) Ltd | 64 | |
| Construction Tyres Botswana (Pty) Ltd | 66 | |
| Delta Automotive Technologies (Pty) Ltd | 67 | |
| Earthmoving Replacement Parts (Pty) Ltd | 69 | |
| Kim's Auto Electricians (Pty) Ltd | 70 | |
| Komatsu Botswana (Pty) Ltd | 71 | |
| Kromberg & Schubert Botswana (Pty) Ltd | 73 | |
| Lesedi Motors (Pty) Ltd | 74 | |
| Mega Tyre Company (Pty) Ltd | 76 | |
| Motor Sales & Services (Pty) Ltd | 78 | |
| Naledi Motors (Pty) Ltd | 79 | |
| Rola Botswana (Pty) Ltd | 81 | |
| Ruprah Motors (Pty) Ltd | 83 | |
| Scania Botswana (Pty) Ltd | 85 | |
| Specialised Panel Beaters (Pty) Ltd | 86 | |
| Taurus Batteries (Pty) Ltd | 87 | |
| Tswana Bus Builders (Pty) Ltd | 89 | |
| Webb's Motors (Pty) Ltd | 90 | |
| Yarona Corporation (Pty) Ltd | 92 | |
| Zadon (Pty) Ltd | 94 | |
| Zambezi Motors (Pty) Ltd | 95 |
