DP World has announced the launch of a fully integrated logistics and market-entry solution aimed at addressing the long-standing challenges original equipment manufacturers (OEMs) face in Africa’s automotive industry.
More specifically, it’s tailored towards those OEMs seeking growth in the sub-Saharan Africa (SSA) region.
The service offering had been successfully piloted with Foton Motor, a leading Chinese commercial vehicle manufacturer, a statement by the logistics multinational said.
The Emirati enterprise said it had been made possible through its end-to-end support platform.
Foton rapidly established aftermarket operations in South Africa for its heavy commercial vehicles, including warehousing, nationwide distribution, regulatory compliance and digital dealer enablement.
DP World said the new service offering was the company’s first automotive hybrid model in the region, blending contract logistics and tailored market-entry and expansion services on a unified platform.
The offering includes nationwide distribution to most dealerships within 24 to 48 hours, a digital dealer portal offering stock-keeping unit-level (SKU) inventory visibility, real-time tracking, automated ordering and integrated payments, the release added.
David D’Annunzio, global vice president for Automotive at DP World, said: "The demand for vehicles is booming in Africa, but the difficulty is ensuring vehicles and parts can reach where they are needed, when needed.”
He said DP World was now in a position to remove the traditional friction points, allowing them to scale their operations for OEM clients.
D’Annunzio described it as the new blueprint for OEM expansion in Africa.
Foton International president Fu Jun said: "Growing our presence in South Africa is a priority for Foton, and our work with DP World has played an important role in making that possible.
“Their support with unlocking market and contract logistics services has helped make our aftermarket operations efficient and straightforward, allowing us to concentrate on serving our customers and building our business."
Mark Rylance, chief operating officer for Logistics in DP World Sub-Saharan Africa, said: "The automotive industry’s outlook for Africa is changing fast. The question is no longer whether to enter the market but how to do it effectively. With extensive infrastructure across the region and deep expertise in complex logistics and market solutions, DP World is ideally placed to support international automakers looking to enter or expand into one of the world’s fastest-growing automotive markets."
Sub-Saharan Africa is projected to be among the fastest-growing automotive markets globally, with vehicle demand expected to increase by 28.5% by 2030, driven by rising incomes, urbanisation and surging intra-African trade.
Despite this potential, Africa accounts for only about one per cent of global vehicle sales.
For global OEMs, a lack of dependable logistics infrastructure, complex regulatory requirements and unreliable parts distribution had hindered efforts to expand in the region, the release added.
