19th December, 2015
Nigeria’s automobile sector is set to contribute more to the global automobile sales in 2016 following establishment of more manufacturing units in the country.
According KPMG 2015 global Automotive Summary Survey, the automobile industry across Africa will increase in volume with global sales expected to pass the 100 million mark and continue to rise till the end of the decade.
In 2015, investment in the automobile industry in Nigeria was at an all time high, as more than 12 automobile manufacturing plants including cars, bikes, tricycles, and trucks began production in Nigeria.
Analysts believe that the rise in local automobile manufacturing industry, investors, auto financing and favorable government policies, 2016 promises to be an interesting year for Nigeria’s automobile industry.
It is estimated that the revenue generated from this sector will produce 25 per cent of the national GDP in the first quarter of 2016.
Also in 2015, vehicle ownership increased with the availability of locally manufactured cars, increase in the availability and sale of Nigerian used cars and access to car loans.
Use of personal cars also increased in 2015. According to a report by the Federal Road Safety Corps there was no significant increase in the number of commercial buses registration in the first and second quarter of 2015 when compared to the third and last quarter of 2014 while registration for new cars increased by 15 per cent.
Nigerians can look forward to the e-car technology in 2016. More people are expected to embrace hybrid cars because of their low fuel consumption and reduced exhaust emission. Production of these cars will increase by 4.6 per cent by 2020.
Demand for cars with other simple technologies such as GPS, remote sensor locks, car tracking devices, keyless ignition will increase is also expected to rise.
A research paper by Carmudi Nigeria shows that 83 per cent of Nigerians start their search for cars online before purchase. The research also stated that the online car market in Nigeria is driven by internet growth and mobile penetration. 2016 promises to surpass the 300 million searches online for new and used cars in Nigeria.
A brand research in 2015 shows that Volkswagen may have greater potential than its closest competitors in Nigeria.
Hyundai market shares will also continue to increase in 2016 followed by Toyota, General motors’ group and German automakers.