DP World has unveiled a fully integrated logistics and market-entry solution aimed at addressing the long-standing challenges for automotive original equipment manufacturers (OEMs) seeking growth in the sub-Saharan Africa region.
In the announcement, the multinational logistics company noted that 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.
Yet despite this potential, DP World said Africa accounts for only about 1% of global vehicle sales, whilst being home to approximately 18% of the world’s population.
For global OEMs, a lack of dependable logistics infrastructure, complex regulatory requirements and unreliable parts distribution have hindered efforts to expand in the region.
"DP World's new turnkey solution is the company's first hybrid model in the region, blending contract logistics and tailored market-entry and expansion services on a unified platform," DP World said.
"The offering includes nationwide distribution to most dealerships within 24 to 48 hours, a digital dealer portal offering SKU (Stock Keeping Unit)-level inventory visibility, real-time tracking, automated ordering and integrated payments," it added.
DP World said the solution was successfully piloted with Foton Motor, a leading Chinese commercial vehicle manufacturer. By leveraging DP World's end-to-end support platform, Foton rapidly established aftermarket operations in South Africa for their heavy commercial vehicles, including warehousing, nationwide distribution, regulatory compliance and digital dealer enablement.
The rapid entry positioned Foton South Africa as a first mover with integrated service networks, creating an early advantage to build customer trust and engagement.
With this, DP World is also well-positioned to support Foton with its supply chain operations globally, including Asia Pacific.
"The demand for vehicles is booming in Africa, but the difficulty is ensuring vehicles and parts can reach where they are needed, when needed. Our turnkey solution will change the game for OEMs, removing the traditional friction points and allowing them to scale their operations. This is the new blueprint for OEM expansion in Africa," David D’Annunzio, global vice president & vertical lead, Automotive at DP World, said.
Fu Jun, president of Foton International at Foton Motor Group, said growing its presence in South Africa is a priority for Foton, and the company's 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," Jun said.
The new hybrid model also allows OEMs to build a first-mover advantage in a region where after-market parts are often dominated by informal players and grey imports.
DP World noted that by offering a reliable service network, OEMs like Foton can establish trust, secure long-term customer loyalty, and reduce the risk of counterfeit parts, with a single point of contact and accountability within the market.
"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," Mark Rylance, chief operating officer for Logistics at DP World Sub-Saharan Africa, said.
DP World said it expects to create more innovative solutions to support additional OEMs entering markets across Sub-Saharan Africa over the coming years, as it scales its offering to meet growing demand for commercial and passenger vehicles in the region.
