Nigeria used car market

Nigeria used car market

Nigeria used car market

 

The automobile sector of a country plays a very vital role in attaining desired economic growth and development. Likewise, the automobile industry of Nigeria is significant in country’s progress. The country is one of the biggest car buyers in Africa. This can be accounted for the growth of various sectors in the country. Vehicle sales in the country is increasing at fast pace with dealers expecting the digits to reach double-digit growth in comparison to the past year.

The country’s automobile industry is growing rapidly and poses a huge potential for growth. Nigeria was the 5th largest car market in Africa in 2013 – behind South Africa, Algeria, Egypt and Morocco. There is a huge demand for vehicles in the country, with one vehicle for every 12 citizens in the country. Nigerian government spent a lot on the importation of new and used vehicles in the country. For instance, in 2013, Nigeria alone spends around $5.2 billion on the importation of vehicles, mainly used vehicles from Asia, Canada and Europe. Around 64% of vehicles imported were used ones. With the increase in middle class population of the country, the automobile industry is booming.

 

Nigeria, located in west Africa allows importation of used cars that should not be more than 8 years old from the date of first registration. The country allows the importation of left-hand drive vehicles. The major shipping ports in Nigeria for Japanese used vehicles are Apapa and Lagos.

 

Almost all cars in the country are imported. Around 150,000 used and 50,000 new vehicles in Nigeria are imported yearly for the 160 million-person every year. Toyota, accounts for the maximum import in the country, although other makers such as Honda, Mercedes, Ford, GM are also making their ways in Nigeria. The quality of Japanese used vehicles imported into the country, attract more people to buy these vehicles. One gets a reliable, durable and good vehicle at cost price almost half of that of new ones. Even the duties on used vehicles are less in comparison to new ones.

 

 

Nigeria is a significant market. There is a huge demand for used cars in Nigeria, while the competition in car manufacturing industry is negligible, leaving sufficient room for the import car market. Mainly for used ones as buying a new one is not within everyone’s financial reach.

 

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