Nigeria Vehicles Market rose 11% in the 2014 standing below observers expectations despite the start of the new Automotive National Plan. Chinese carmakers are growing fast while the leader Toyota’s sales fell down.
The economy slowed markedly in Q1 and there are signs suggesting that weak growth momentum carried into Q2. A mix of low oil prices, which translate into a sharp fall in revenues, as well as power failures, high inflation, tighter regulation in the foreign exchange market, and Boko Haram’s ongoing campaign in the northeast of the country, likely hampered growth in Q2.
In the political arena, President Muhammadu Buhari stated in early July that he would appoint the new members of the cabinet in September.
This situation raised fears that much-needed economic reforms would be delayed further, which would thereby hurt business sentiment
In the last 50 years, several times had been announced the next booming of the NIgerian automotive sector and the last was in the fall 2013, when the government announced the new National Automotive Plan, affirming it was a new milestone for the development of the sector.
The plan should have attracted many OEMs ready to invest in Nigeria and indeed during the 2014 many announced plans declaring that the potential volume of Nigerian domestic market in the next decade could rose up the 200.000 for below 50.000 hit in the 2013.
Indeed in the 2014 the market grew just a bit with total sales of light vehicles standing at 55.500, up 11.3% from the previous year reporting the highest volume in the last 30 years. However, the growth was well below the observer expectations and the 2015 is foreseen uncertain.
Toyota is market leader as in almost 95% of the sub saharian markets, but in the 2014 sales slowed 14% at 15.802 due to a shortfal in the sales of the pick up Hilux, market leader in the 2013 and now dropped down.
Overtaking Kia, the Korean Nissan advanced in second place with sales up a robust 71.5%, fueled by the Accent, now the second best-selling model in the market. Kia was third losing 25.5% of sales.
The winners of the 2014 ha been the Chinese, booming volumes with the Chery joining the top 10 ranking, landing in 10th place, two behind Great Wall.
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