Stellantis invests in used car start-up in Sub-Saharan Africa
Africa has long suffered the wicked problem of being a dumping ground for the world’s very old used cars. The Continent's car-park is at 50 million vehicle units, the average age of which is 12-15 years. But for many Africa citizens, these nasty old cars are the only thing they can afford to buy if they need private transport.
Earlier this month (September 2022), Africar Group and Stellantis announced the launch of Auto24 in Abidjan, Ivory Coast. The initiative is a direct-to-consumer used car company that brings innovative solutions to customers and ensures transactions are conducted transparently and securely.
Africa's population is expected to reach 1.7 billion by 2030, so for Stellantis, this investment in Africar Group to create Auto24 brings a new opportunity to expand its operations and take advantage of the young and growing African population's demand for decent cars. It’s also an illustration of the car company’s plan Dare Forward 2030.
Africar Group operates in more than 40 countries across Sub-Saharan Africa and is the Continent’s leading online automotive marketplace. During the last five years, it has enabled over 25 million car buyers and sellers to trade used cars through its online channels.
Axel PEYRIERE, co-Founder & CEO of Africar Group, said: “After more than five years of working with automotive manufacturers, distributors and other key players in the industry, we have developed a multi country digital automotive solution across Sub-Saharan Africa. Auto24 is being launched today with the aim to buttress the confidence of African customers in the used vehicle market.”
Xavier Duchemin, Senior Vice President of the Pre-Owned Vehicles business unit at Stellantis, declared: “This investment in Africar Group to create Auto24, re-enforces our strategy to grow our used vehicle business activity globally in a bold, pragmatic and agile way. It will follow the same blueprint as per the other Stellantis investments in the used vehicle ecosystem.”
This looks good for Stellantis and maybe for the consumer too but the hope is that it will help legitimise used vehicle sales in all of Africa, thus helping clean up the otherwise unsustainable industry and making the Continent a better, cleaner and safer place for its citizens.