Flash Reports

Nigeria Car Market stands below potential. Toyota dominates.

Nigerian Car Market represents the biggest opportunity for Carmakers in OEM considering the huge potential for the country and the availability of natural resources that could help leading the entire sub-saharan area.

In sub-Saharan Africa, Nigeria with a population exceeding 174 million represents the largest consumer economy and has witnessed a significant growth in vehicle ownership amongst its people. Relative to the other countries in the region Nigeria therefore represents the largest regional market in Sub Saharan Africa. Apart from the individual members of the public, corporates (including international companies) and Nigerian government departments represent the major customer segments in the country

Vehicle manufacturing in Nigeria could be traced back to early 1960s when private companies pioneered the establishment of Auto Assembly Plants using Completely Knocked Down (CKD) or Semi-Knocked Down (SKD) parts. However in early eighties, Government nationalized the industry and opened two industrial companies, the Peugeot Nigeria Ltd. (PAN) in Kaduna, and Volkswagen of Nigeria Ltd. (VWON) in Lagos, producing vehicles using Completely Knocked Down (CKD) Parts system. These plants generated an installed capacity to annually produce 108.000 cars and 56.000 commercial vehicles, but the maximum utilization was around 10% and the entire Nigerian Automotive Industry collapsed.

Since 2007, government has sold most of its substantial shareholdings in domestic vehicle-production facilities. The shareholders of those that survive are now multinational manufacturers and powerful local shareholder groups, many of which have good political connections.

However, demand for commercial vehicles will continue to be met largely by Imports, supplemented by existing privatized local assembly operations. This is also the case for automotive parts, where the market faces substantial Infiltration of counterfeit and fake parts.

Domestic car market sales in 2004 were at 44.000 units and in the last decade have not progressed. The all-time record volume was fixed in 2011 when the market exceeded the 50.000 units for the first time, landing at 51.300.

In 2012, the market was back down by 5% to 48.490 registrations.

Looking at top brands performance

Toyota dominates the competition thanks to its powerful line up of pick-ups and SUV. In 2012 Toyota sold 19.755 units with a share of 40.7%, improving over 10 points from 2011.

The Koreans Kia & Hyundai suffered in 2012 both significantly losing share from the previous year. However, Kia kept the second place in the market selling 5.034 units with a share of 10.4%, down 4.9 points of share from 2011.

Hyundai was third with 4.259 sales and a share of 8.8%, down 4.0 points from the previous year.

Ford was 4th with a 4% volume increase and 2.613 units, with a share of 5.4%, up 0.5 points from 2011. New Ranger was the driver of Ford performance.

Honda was 5th with 2.473 sales and a share of 5.1%, up 2.1 points from the previous year. Honda volume soared 58%.

Research, Consulting, Data & Forecast Store

F2M covers intensively this market with several products developed to help any investigation required.

Market Researches in PDF are immediately available for download with study on the market since 2005 and with forecast up to the 2020.

Auto Data in EXCEL are immediately downloadable with annual sales volume, split by month, for all brands and all models distributed in the market. This year data are released year to date, but you will receive a monthly update until the year-end.

All these and more within our Nigeria Store.

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