BERTRAND MALLET - Inchcape

Ethiopia Automotive OverviewLow car penetration and old carparcNew car market estimated at less than 4,000 unitsCar penetration among the lowest in the worldAverage age of the car parc is estimated at 15 yearsHigh market share for Toyota Clear leadership position for Toyota (market share at around 50%)Improvement of roadinfrastructureSignificant investments in road infrastructure with support fromWorld Bank and various development agencies (network increasedfrom under 23,500 km of roads in 1995 to over 37,000 km in 2005)Market still geared towards salesto Government, NGOs,companies and diplomatsEmergence of middle class andfirst time buyersLarge and aged Toyota car parcwith high demand for service andpartsSales to individuals represent less than 10% of Moenco salesMarket geared towards large SUVs, 4x4s and pick-up vehiclesStill a small segment of the market, but Moenco well-positioned totake advantage of market growth thanks to its strong image andaccess to range of small vehicles from ToyotaToyota car parc (~100,000 cars), by far the largest in the country,includes ageing cars with strong demand for quality servicing andbody repair, as well as high volumes of genuine Toyota spare partsThe emergence of a middle class and improvement of the infrastructure will provide strong growth opportunitiesSource:: Economist Intelligence Unit/Inchcape Estimates