“Auto Market Accelerates with Surge in EVs, Hybrid Vehicles and Leasing Activity”

Report 

Driven by a growing appetite for sustainable mobility and backed by expanded financing options, Mauritius’ automotive sector is undergoing structural transformation. A joint report by CARE Ratings Africa and StraConsult Ltd offers insights into the latest trends, market dynamics, and policy implications.

Mauritius’ automotive sector has recorded robust growth across multiple segments, underpinned by a sustained increase in vehicle registrations, growing appetite for electric and hybrid cars, and a notable expansion in consumer leasing.

As of March 2025, the number of registered cars reached a record 337,585, up from 173,954 in 2014, representing a compound annual growth rate (CAGR) of 6%. According to data from the National Land Transport Authority (NLTA), cars dominate the automotive fleet, followed by dual-purpose vehicles (127,590) and motorcycles (124,384).

Recent trends point to a diversification of the local vehicle fleet. The entry of hybrid pickups – such as the GWM P500 – and increased availability of electric and hybrid models have signalled a shift in consumer preferences. Brands such as GAC International, BAIC, BYD and Smart Automobile have entered the market with technologically advanced vehicles, attracting interest from younger and environmentally conscious buyers.

In March 2025 alone, 1,548 new vehicles were registered, of which 78% were cars. Suzuki led new registrations with 404 units, ahead of Kia, Toyota, Hyundai and Nissan.

The electric vehicle (EV) segment has undergone a significant transformation over the past decade. Between 2012 and 2024, 3,452 electric cars were registered, a fourteen-fold increase since 2019. Nissan accounted for the largest share (28%), followed by BMW (24%) and Kia (8%). This shift has been fuelled by increased model availability, supportive tax policies – EVs are exempt from excise duty – and growing consumer awareness.

As of March 2025, the number of registered cars reached a record 337,585, up from 173,954 in 2014

Hybrid vehicles have also seen remarkable uptake. Registrations quintupled over the past decade, reaching 12,087 units in 2024. Toyota (43%) and Honda (34%) dominated the segment, benefiting from strong demand for models such as the RAV4, Prius, CR-V and Civic. Most hybrid cars were second-hand imports, driven by their better fuel economy and higher potential resale value.

Mauritius’ import structure has evolved to reflect these changes. Between January and November 2024, Japan remained the leading exporter of motor vehicles to Mauritius, accounting for 28% of imports under HS Code 8703, followed by Germany (23%), India (15%) and China (8%). At the same time, imports of machinery and transport equipment for road vehicles rose from Rs 14.1 billion in 2019 to Rs 25.4 billion in 2023 – a growth of 80%.

The shift towards more sophisticated vehicle technologies has also impacted the automotive aftermarket. The supply of spare parts, especially those specific to EVs and hybrids, is expanding to meet new demand. Analysts anticipate further growth as car models become increasingly complex and digitally enabled.

Leasing remains a critical enabler of vehicle purchases. As of December 2024, leasing facilities for motor vehicles stood at Rs 29.1 billion, comprising 88% of all outstanding leasing to households and corporates. During the same period, the number of vehicle leases rose to nearly 50,000, up 9% from the previous year, while the total value of motor vehicle leases grew by 23%.

Despite macroeconomic headwinds, the outlook for the automotive sector in Mauritius appears broadly positive. Structural shifts towards cleaner energy vehicles, combined with favourable financing conditions and evolving consumer preferences, are likely to drive continued growth and innovation in the industry.

(Source: Automotive Sector Insights – May 2025, jointly published by CARE Ratings Africa and StraConsult Ltd.)