Nigeria 2023. Car Market Increased (+18.9%) While Standing At Marginal Volumes

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The 2024 Toyota Sequoia TRD Pro
The 2024 Toyota Sequoia TRD Pro

Nigerian Cars Market in 2023 grew up for the 3th year in a string. Total sales reached 13,304 (+18.9%) the best out of the last four years, while very far from market potential and projections.

Market Trend and Outlook

Nigeria is a multi-ethnic and culturally diverse federation of 36 autonomous states and the Federal Capital Territory. The political landscape is partly dominated by the ruling All Progressives Congress party (APC) which controls the executive arm of government and holds majority seats at both the Senate and House of Representatives in parliament, and majority of the States.

Weakened economic fundamentals led the country’s persistent inflation to reach a 17-year high of 25.8% in August 2023, which, in combination with sluggish growth, is leaving millions of Nigerians in poverty.

Following a change in administration in May 2023, the country is now at a crossroads, and has a unique opportunity to return to a sustainable and inclusive growth path. Recognizing the need to change course, the new administration has undertaken key reforms to restore macroeconomic stability by removing the gasoline subsidy and unifying and significantly liberalizing the exchange rate. These reforms, together with global oil prices remaining above their historical averages, are expected to begin to reduce fiscal pressures, and unwind the critical macroeconomic distortions that held back growth in the past.

The automotive industry is expected to grow at hundred thousand units, while i reality is is steady just over the 10k since years.

And indeed, in 2023 the new vehicles market grew totalling 13,304 sales, while being up 18.9%. December caps off the year with a 25.0% growth, registering 1,149 new sales.  

Looking at cumulative data up to December 2023 brand-wise, the leader Toyota reports a 15.5% increase in sales while holding 16.1% market share, followed by Innoson which grew 2 spots in the rankings. Closing the top 3 is Hyundai with a 28.3% YTD increase.