At our last count, no fewer than 30 brands of automobile are today represented by franchised dealerships in Nigeria. And they are all jostling for patronage in Africa’s supposedly biggest market. The market which has also become proactive perhaps because of its peculiar nature is viewed by global automakers as the fortress of automobile market South- west of the Sahara.
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| Promising Nigerian Auto Manufacturing Sector |
The Nigerian automobile market, according to them, has potentials to grow exponentially and even double its size in less than ten years time.
Unfounded statistics puts the combined new vehicle imports to Nigeria last year at about 70,000 units from a staggering 10, 000 some eight years ago.
This figure does not however include Tokunbo imports i.e. fairly used vehicles as well as ‘grey imports’ (unauthorized marques) that are occasionally ferried into the country by night through porous borders.
Even so, more brands are seeking to register their mark in Nigeria to have a bite of the juicy market that grows at an unimaginable height.
One of the latest entrants is Indian owned TATA Motors that though marketed by an Indian dealer, Bhojwani Brothers, but now controlled by the owners of the brand.
Like other representatives, TATA seeks to have a bite on both the commercial/truck vehicle segment and of course the passenger car segment. For now TATA is desperately seeking to appoint local dealerships to help distribute its products all over Nigeria. One of the criteria for dealership, according to the company, is that the applicant must have a reputable workshop to handle the brand.
Nothing seems able yet to tame the growth potentials of the market that from all indications appear to be attracting more stakeholders.
Until recently, Peugeot had towered above rival brands, importing an appreciable 200, 000 units while Nissan/Datsun followed closely with about 110, 000 imports and Toyota 56, 000 units.
But the entrance of new players, especially Chinese imports, has given the market a new twist. Some of the Chinese brands represented in this market include Lifan, Chery, Jinbei, Quingoi, Geely, Foton, BYD, LandMark, GrandTiger, JAC and Chana range of automobiles among others.
The list of other major brands are similarly endless. They include Ford, Rover, GM, Chevrolet, Isuzu, Daimler Chrysler, Mercedes Benz, Volvo, BMW, Volkswagen, Chevrolet, Peugeot, Mazda, Honda, Renault, Dacia and Hyundai. Others are Kia, Skoda, Audi, Mitsubishi, Nissan, Toyota, Suzuki, Porsche, Tata, Maruti and Mahindra. In the truck segment, Iveco, Fiat, International, Leyland, Mercedes Benz, Kamaz, and DAF hold sway.
Importers of motorcycles like their automobile counterparts are similarly finding solace in the local market and are exploring all opportunities to usurp the market shares of one time Nigeria’s foremost motorcycle assembly plant, Honda Manufacturing Nigeria. Currently numbering over 30 variants, unfounded statistics put the number of motorcycles’ import to Nigeria at almost 600,000 units annually.
The size and demographic structure of the country’s population put at more than 120 million people as well as the inability of local vehicle plants to meet increasing demand and the unavailability of modified mass transit system are touted for the growing presence of various automobile marques in this market.
Yan Jiang, executive president, Geely International, captured the growth potential better when he noted at a forum in Lagos that the Nigerian market is so significant to Geely International and would not hesitate to site a plant in the country.
Hyra Motors Limited, representatives of Geely in Nigeria has since it was appointed Geely dealership in Nigeria made striking effort to popularize the brand.
Similarly, David Bakare, chief executive, Chery Motors Limited, marketers of Chinese engineered Chery vehicles is confident that the brand would succeed in Nigeria. He said the quality of Chinese engineered vehicles compare with rival brands from Japan.
Iftikhar Qamar, general manager, sales and marketing, National Trucks’ Manufacturers, Kano, local assemblers and marketers of Oingqi light commercial trucks, GreatWall brand of pickups and Sport Utility Vehicles (SUVs) also said the company’s products are strong, reliable and durable and can stand the test of time.
Peugeot Automobile Nigeria is though the only surviving local passenger car plant, the federal government has divested its stakes in the company. It is now managed by independent investors who are determined to raise the bar for the brand.
Meanwhile, Toyota Nigeria Limited, brand custodian of Toyota has continued to chart the way in the country’s automobile market, leading the pack with yet insurmountable sales record. The company currently imports 70 percent of the combined new vehicle imports to Nigeria. Although the company has no clear cut marketing strategy, its renowned global identity has continued to pave the way for Toyota in the local market. It has continued to strengthen its dealership network that are mostly situated in and around Lagos, south west Nigeria.
The Stallion Group are however multiple franchise dealerships with interest in Audi, Volkswagen, Skoda, Porsche, Hyundai, Honda and Mahindra vehicles. The company championed car financing schemes and other marketing bonanzas that it uses to woo buyers. Stallion currently remains the only single marketer with the largest numbers of automobile franchise in Nigeria.
The endorsement of Alliance Autos Limited dealership two years ago to market Nissan in Nigeria has also helped to transform the future of the brand.
Dana Motors Limited, marketers of Kia, has similarly been proactive in its exceptional marketing strategies that essentially seek to woo upwardly mobile executives to buy Kia vehicles. Dana has also effectively combined effective marketing mix to position Kia brand in Nigeria.
CFAO, the French conglomerate has also been springing surprises lately with the acquisition of additional franchises. Until recently it was only visible as Peugeot marketer but today, it markets and distributes Chevrolet, Mitsubishi, Iveco, GM and Renault range of vehicles. GM Nigeria, currently the oldest vehicle plant in Nigeria, has managed to keep its plant afloat in spite of all odds. Its Isuzu Pickups are widely used by law enforcement agents and banks.
Kewalram Motors, the automobile subsidiary of the Chanrai Group is the country’s franchise holder for Mitsubishi vehicles.
The company may be discreet in its marketing strategies; it is obvious that the company controls a significant share of the light truck and passenger car segments.
The return of BriscoeFord and its subsequent acquisition of the Ford franchise has added value to the fifty-year old company, which after relinquishing its stake in Toyota Nigeria almost went under. The company however still markets Toyota vehicles though with key interest in after sales.
Coscharis Motors, though markets Ford, it combines the responsibility with the BMW and Rover franchises which it has reluctantly hyped.
Being one of the most visible trucks on Nigerian roads Van Vliet Nigeria Limited, marketers of DAF, Dutch engineered brand of trucks had until recently held sway in the truck segment but encumbered by challenges.
The American engineered International, makers of International trucks is similarly making inroads to Nigerian truck market. Marketed by GZ Motors Limited, who is also distributors of Kamaz trucks has been making efforts to get more people in the haulage business to embrace International trucks.
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