DP World launches logistics, market-entry product for vehicle manufacturers
DP World has unveiled what it calls an integrated logistics and market-entry product aimed at solving the challenges automotive original equipment manufacturers (OEMs, or vehicle manufacturers) face in sub-Saharan Africa.
DP World says the solution, initially developed for and piloted with China’s Foton Motor, “sets a new model for overcoming entry barriers in one of the world’s fastest growing automotive markets”.
According to the Dubai-based logistics group, vehicle demand in the region is expected to increase by 28.5% by 2030. Africa currently accounts for only 1% of global vehicle sales, whilst being home to 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,” notes DP World in a statement.
The company says its new turnkey solution blends contract logistics, tailored market-entry and expansion services into a unified platform.
The new offering includes nationwide distribution to most dealerships within 24 to 48 hours, a digital dealer portal that allows for stock-keeping-unit-level inventory visibility, real-time tracking, automated ordering, as well as integrated payments.
“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,” says DP World.
“This rapid entry positioned Foton South Africa as a first mover with integrated service networks, creating an early advantage to build customer trust and engagement.”
DP World believes its new hybrid model will allow OEMs to build first-mover advantage in a region where aftermarket parts are often dominated by informal players and grey imports.
“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 demand for vehicles is booming in Africa, but the difficulty is ensuring vehicles and parts can reach where they are needed, when needed,” notes DP World automotive vertical lead David D’Annunzio.
“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.”
“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,” adds Foton International president Fu Jun.
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