With more than $89 million worth of revenue from global automobile sales, the year 2016 look promising for the industry. According to a 2015 global automotive survey by KPMG, the automobile industry across Africa will increase in volume. Global sales will pass the magical 100 million mark and continue to rise till the end of the decade.
In Nigeria, there is also rise in sales revenue of automobiles, according to Carmudi Nigeria, the largest online car sales platform in the country, 2015 investment in the automobile industry in Nigeria was at an all time high – this increased demand saw the birth and resurrection of more than 12 automobile manufacturing plants including cars, bikes, tricycles, and trucks which began production in Nigeria.
Carmudi in a recent statement said that with the rise of local automobile manufacturing industry, investors, auto financing and favourable 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 yield 25 percent of the nation’s GDP in the first quarter of 2016.
By its survey, Carmudi stated that vehicle ownership increased in 2015 with the availability of locally manufactured cars. There was also increase in the availability and sale of Nigerian used cars and access to car loans. Use of personal cars also increased. 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 quarters of 2015 when compared to the third and last quarters of 2014 while registration for new cars increased by 15 percent.
Carmudi’s forecast for the coming year is that, e-car technology will be taken into consideration more in 2016. More people will embrace hybrid cars because of their low fuel consumption and reduced exhaust emission and production of these cars will increase by 4.6 percent by 2020. Demand for cars with other simple technologies such as GPS, remote sensor locks, car tracking devices, keyless ignition will increase.
A research paper by Carmudi Nigeria showed that 83 percent 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 showed 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.
By Pita Ochai