Overview

The Tanzania Used Car Market has seen robust growth in recent years, driven by rising middle-class incomes, a growing demand for affordable mobility, and increasing importation of second-hand vehicles. In a country where new vehicles are relatively unaffordable for most consumers, used cars remain the dominant choice. The sector is forecasted to expand steadily through 2025, underpinned by favorable import policies, expanding digital marketplaces, and a youthful, urbanizing population.

Key Growth Drivers:

  • Affordable alternatives to new vehicles.
  • High demand for personal transport in urban and peri-urban areas.
  • Relaxed import rules for vehicles under 8 years old.
  • Growth of online vehicle platforms and financing solutions.

Market Trends:

  • Shift from unregulated, informal dealerships to digital and certified marketplaces.
  • Increasing demand for fuel-efficient and compact cars.
  • Rising use of mobile payments and digital verification services.
  • Enhanced focus on vehicle inspections and roadworthiness certifications.

Segmentation

  1. Key Categories
  • By Vehicle Type: Sedans, Hatchbacks, SUVs, Pick-up Trucks, Vans
  • By Fuel Type: Petrol, Diesel, Hybrid, Electric (nascent)
  • By Source: Japan (major), UAE, UK, Singapore, South Africa
  • By Sales Channel: Offline Dealers, Online Platforms, Auctions
  1. Target Demographics
  • Urban Middle-Class Buyers: Seeking affordable and reliable cars for commuting.
  • Small Business Owners: Purchasing utility vehicles like pickups and vans.
  • Young Adults (25–40 years): First-time buyers, typically prefer hatchbacks and sedans.
  • Ride-Hailing Drivers: Demand for fuel-efficient and durable vehicles.
  1. Geographic Segments
  • Dar es Salaam: Major hub for imports and sales, including port access.
  • Arusha, Mwanza, Dodoma: Emerging markets with rising demand.
  • Rural Regions: Lower penetration but growing interest, especially for utility vehicles.

Key Players

  1. Be Forward Tanzania
    A dominant player in Japanese used car imports, offering online purchasing, inspection reports, and logistics support.
  2. SBT Japan
    One of the largest exporters of used cars to East Africa, offering wide vehicle options and competitive pricing.
  3. Autochek Africa
    A newer entrant digitizing used car sales with vehicle financing and inspection services tailored to African markets.
  4. Local Dealers and Port-Based Importers
    Hundreds of independent importers around the Port of Dar es Salaam who cater to walk-in and wholesale buyers.

Regional Analysis

Urban Centers

  • Dar es Salaam is the market leader, benefiting from proximity to the port, a dense population, and high urban mobility needs.
  • Arusha and Mwanza show increasing adoption driven by regional trade and expanding population.

Rural Areas

  • Limited access to financing and poor road conditions inhibit market growth.
  • However, demand is rising for durable vehicles such as pickups for agricultural and commercial use.

Cross-Border Sales

  • Tanzania serves as a hub for re-exporting used vehicles to neighboring countries such as Rwanda, Burundi, and the DRC.

Latest Developments (2025)

  • Digital Marketplaces: More buyers are shifting to platforms like Autochek and Be Forward for transparent purchasing and loan options.
  • Financing Growth: New microfinance partnerships are enabling installment-based purchases, especially for youth and SME buyers.
  • EV Imports: Early entrants have started bringing used electric and hybrid vehicles, though infrastructure remains limited.
  • Regulatory Updates: Expected introduction of stricter emissions standards and border inspection policies may affect older vehicle imports.
  • Blockchain for Vehicle History: Pilot initiatives underway to track vehicle condition, ownership history, and accident records.

Conclusion

The Tanzania Used Car Market stands at a pivotal juncture, where affordability, digital innovation, and a young consumer base are shaping its future. While challenges like informal dealerships, regulatory gaps, and infrastructure constraints remain, the overall trajectory is positive. By 2025, the market is expected to become more organized, digitized, and inclusive—making it a key player in East Africa’s automotive ecosystem. The used car industry not only fuels mobility but also contributes significantly to employment, trade, and economic activity across Tanzania.

More Related Reports: 

Low-Speed Vehicle (LSV) Market 

Automotive Luxury Vehicle Market 

CNG vehicles Market 

Air Powered Vehicle Market