DP World launches turnkey solution for auto growth in South Africa
Deal with Foton Motor sets a new model for overcoming entry barriers in one of the world’s fastest growing auto markets
DP World announced the launch of 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.
The solution was successfully piloted with Foton Motor, a leading Chinese commercial vehicle manufacturer, says an official release from DP World.
"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 a first mover with integrated service networks, creating an early advantage to build customer trust and engagement."
DP World’s new turnkey solution is 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 (SKU)-level inventory visibility, real-time tracking, automated ordering and integrated payments, the release added.
A large number of axles on shelving unit in the car plant.
David D’Annunzio, Global Vice President & Vertical Lead, Automotive, DP World says: "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.”
Fu Jun, President, Foton International adds: "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, Logistics, DP World Sub-Saharan Africa says: "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 percent by 2030, driven by rising incomes, urbanisation and surging intra-African trade. Despite this potential, Africa accounts for only about one percent of global vehicle sales. For global OEMs, a lack of dependable logistics infrastructure, complex regulatory requirements and unreliable parts distribution have hindered efforts to expand in the region, the release added.
