Chinese automakers are stepping up their presence in Tanzania as higher taxes on older imported vehicles reshape one of East Africa's fastest-growing automotive markets.

For years, Tanzania's roads have been dominated by used vehicles imported from Japan, valued for their affordability, reliability and low maintenance costs. Despite recent tax increases on older vehicles, demand for second-hand imports remains strong.

Data from the Bank of Tanzania shows spending on imported household vehicles rose by nearly 54 percent in the first quarter of 2026.

"The main reasons are affordability, reliability and low ownership costs," said Stella Albert, an automotive analyst at Troni Motors. "When it comes to maintenance and spare parts, they are easy to find. That's why many customers who come to us prefer Japanese brands."

Chinese electric vehicle manufacturer BYD entered the Tanzanian market this year and says it is seeing growing interest from consumers seeking advanced technology, lower operating costs and more environmentally friendly vehicles.

"BYD's entry into Tanzania is to bring more advanced and safer options to local consumers," said Li Ruipeng, sales manager at BYD Tanzania. "We also hope to bring more innovative technology and give consumers a wider range of choices."

BYD is among several Chinese manufacturers, including Chery, GWM and Jetour, expanding across Africa with hybrid and electric models.

Industry data shows that Chinese vehicle sales across Africa are rising, driven in part by a 75 percent year-on-year increase in South Africa, the continent's largest automotive market. Analysts attribute the growth to competitive pricing, longer warranties and increasing consumer confidence in Chinese brands.

In Tanzania, manufacturers are adopting what dealers describe as an "Afro-centric" strategy, offering plug-in hybrids and sport utility vehicles tailored to local driving conditions while targeting a market with strong growth potential.

However, challenges remain. One of the biggest obstacles is the shortage of technicians with the skills and training required to service newer Chinese vehicle technologies.

"We have partnered with the Vocational Education and Training Authority to provide training on BYD technology to technicians," said Khamis Silanda, a sales consultant at BYD Tanzania. "If local mechanics do not understand BYD vehicles, they may not be able to help customers when problems arise."

To expand their market share, Chinese automakers are increasingly targeting businesses and government fleets seeking to reduce fuel costs and emissions, while also expanding beyond the commercial capital of Dar es Salaam as competition in Africa's automotive sector intensifies.