Overview
Somalia’s urbanizing population is increasing the demand for automobiles. Vehicle demand has historically been relatively low due to low incomes and poor road infrastructure. The country imports secondhand vehicles mainly from the Middle East as there are no local manufacturers or assemblers. The government has limited capacity to enforce regulations, including on the age of vehicle imports. Nevertheless, all cars are expected to be left-hand drive.
Since 2019, Japanese and South Korean brands have entered the Somali market, providing consumers with domestic access to brand new vehicles. Toyota, Hyundai, and Suzuki were the first to open local franchise outlets in both Mogadishu and Hargeisa.
The increasing Somali diaspora is familiar with American motor vehicle brands and would be potential early customers of U.S. brands if those brands were available in the local market, presenting a potential investment opportunity for resellers and dealerships. Additionally, spare parts and vehicle servicing are expected to present opportunities as the number of vehicles in Somalia grows.