Auto Sellers Lament as Gross sales Crash Amid 126% Value Hike

Vehicle sellers have lamented the collapse of the automotive dealership enterprise as the value of autos skyrockets by over 126 per cent in eight years, from N18m to N80m on common, crippling gross sales and excluding middle-income earners from the market.

In an interview, President of the Vehicle, Boatyards, Transport Tools and Allied Employers of Nigeria, Kunle Jaiyesimi, decried the sector’s misfortune, noting that gamers hardly make gross sales as a result of nation’s shrinking buyer base.

“The market has shrunk dramatically,” Jaiyesimi lamented. “Eight years in the past, you would get a mid-size SUV for N18m. Immediately, that very same car goes for nothing lower than N80m, and there’s no shopper financing to match the rise.”

Jaiyesimi identified Nigeria’s auto coverage, which rolled out over a decade in the past however has did not assist traders and shoppers, forcing many companies to scale down.

He defined, “Earlier than the downturn, we have been doing between 120 and 150 models month-to-month. Now, the full new car gross sales for final yr have been simply above 18,000 models, and that’s with the federal government remaining the most important purchaser.”

Jaiyesimi, additionally the Deputy Managing Director of CFAO Motors, criticised authorities officers for not exhibiting up in individual to satisfy stakeholders, together with authentic gear producers, at sectoral occasions, such because the lately concluded West Africa Automotive Present 2025 in Lagos, meant to drive funding in native meeting and part manufacturing.

“These foreigners introduced of their hard-earned cash to organise this occasion. Not one of the ministers or the DG of NADDC confirmed up. It’s discouraging to traders. The federal government should do extra,” he stated.

Jaiyesimi defined {that a} neighbouring nation comparable to Ghana, which began its auto initiative earlier than Nigeria, already boasts seven producers and 15 car manufacturers, whereas Nigeria nonetheless struggles with full-fledged native meeting.

He additionally expressed concern that the federal government continues to bypass native companions in worldwide engagements.

“You see Nigerian officers flying to Japan to satisfy with Toyota with out involving their native representatives right here. It sends the mistaken message and undermines efforts to develop the business domestically,” Jaiyesimi bemoaned.

On the problem of shopper credit score, Jaiyesimi famous that the sector had lengthy proposed a 35 per cent levy on imported totally constructed autos to fund car financing for Nigerians.

“That levy would have generated over N200bn since 2014. It was meant to allow Nigerians to stroll into banks, pay fairness, and drive out with a automotive below single-digit curiosity,” he defined.

Nonetheless, the AAABTEAEN president acknowledged the N20bn car credit score scheme lately introduced by the administration of President Bola Tinubu, saying, “At the very least, it’s a step in the fitting course.”

Additional, our correspondent spoke with the President of the Auto Spare Elements and Equipment Sellers Affiliation, Ngozi Emechebe, who careworn the significance of accessibility and affordability of spare components, particularly amid plans to transition to gas-powered autos.

“Authorities should guarantee fuel is obtainable if they need conversion from petrol to work. The endpoint is the market. If there’s no fuel, how will individuals cope?” he requested.

Emechebe maintained that the NADDC’s native content material coverage would solely work if Nigeria attracts extra manufacturing companies.

“Within the Nineties, 50 per cent of car components have been produced domestically. Now, we import virtually every little thing. If the financial system improves and we get the fitting assist, we’re able to revive that capability,” the ASPMDA president asserted.

Additional, Emechebe referred to as on native automakers like Innoson and Nord to enhance entry to their components, stating, “If I determine to import a headlamp for Innoson, I must be free to. Accessibility is vital. We wish autos and parts out there to the plenty.”

Sellers are actually calling on the Federal Authorities to increase shopper credit score schemes, strengthen auto insurance policies, and interact native stakeholders in world funding talks to forestall additional decline within the automotive sector.