USED VEHICLES FROM U.S & JAPAN FLOODS NIGERIA MARKET

New vehicles on display

With the inauguration of new governments in some states of the federation, dealers of brand new vehicles expect their business to pick up in the coming months, Despite this, the used vehicle market still flourishes.



Car dealers have placed fresh orders for new and old models from manufacturers in anticipation of higher demand under the new administration.

Imported used vehicles have also continued to flood the Nigerian automobile market since the age limit was raised by the Federal Government last November from 10 years to 15 years.

An investigation by our correspondent showed that about 27, 918 vehicles were imported in May, going by the figures released by the Nigerian Ports Authority through its latest daily shipping positions.

The figure is over 100 per cent higher than the estimated 13,000 vehicles, which were imported in April.

A breakdown of the imported vehicles in May showed that only 5,420 were new, while 22,498 were used vehicles otherwise called tokunbo.

The 27,918 vehicles came in through the Lagos ports, according to the NPA.

Despite the different crises that befell it lately, which analysts feel are capable of threatening its business in 2011, Toyota Nigeria Limited is hopeful of surpassing its sales figure of last year by 2,000 vehicles.

Toyota’s massive recalls of some models towards the end of last year were still generating furore, when a tsunami and earthquake swept through a number of its factories in Japan, forcing it and other manufacturers to temporarily suspend production of new vehicles.

But the Managing Director, TNL, Mr. Chadra Thampy, said the firm, which sold about 15,000 vehicles in 2010, was targeting 17,000 units this year.

The 17,000 vehicles represent Toyota’s share of the estimated 58,000 new vehicle units projected for sale in 2011 in Nigeria.

A total of 42,500 new vehicles were reportedly sold in the country last year, representing just a quarter of the used vehicles imported through the Lagos ports.

Thampy hinged the expected increase on the prospect that elected politicians would vote for new cars.

He said that, though the company had projected selling about 14,500 vehicles in 2010 when there was no election, it exceeded the target by 500 units a few days to the end of the year.

“A new set of leaders have emerged this year and one expects that there will be new policies that will help the economy,” he had said earlier in the year.

Three Renault products were introduced to the Nigerian market last month in anticipation of a rejuvenated brand new car market after the general elections, which were expected to usher in many new leaders.

The Marketing Manager, CFAO Group, Mr. Harpreet Arora, said the three tropical models, the Duster, new Logan and Logan MCV, coming into the country through Alliance Autos, were the first batch of six new Renault vehicles for the Nigerian market this year.

Hyundai Motors Nigeria Limited also confirmed that the new car industry was already on a healthy climb with the reported success of the 2012 Hyundai Accent shortly after its introduction.

The Marketing Director, Hyundai Motors, Mr. Kiran Parab, said that the company was confident of selling 400 units in one month.

His confidence, he stressed, stemmed from the record sale of 50 units of the new car in just four days after they were delivered to them from Korea.

Hyra Motors, another auto firm, which sells low-budget Chinese cars, has introduced two new products to the Nigerian market this year. The Brilliance FSV came in January, while Geely Panda was unveiled the following month.

The Managing Director, Hyra Motors, Mr. Oluseyi Oyinlola, said the firm also planned to introduce more products in the months ahead, including some in the commercial range.

The Public Relations Manager, Briscoford, Mr. Felix Adesoye, also said that, aside from new political leaders, top executives of new and old firms that would be revived by the friends and associates of the new leaders were also expected to go for new vehicles. With the passage of the 2011 budget, he also said that more money would be available in different sectors of the economy and would hopefully prop up the demand for new cars among the players.

The General Manager, Mitsubishi, CFAO Group, Mr. Naavin Chander, whose company introduced the 2011 Mitsubishi ASX last month, said although the year started on a drowsy note for the new automobile market, it was gradually turning out as gratifying.

He noted that many commercial banks, which used to be major buyers of new vehicles, apart from government agencies, suddenly withdrew from the market because of the reform regime introduced by the Central Bank of Nigeria.

Banks’ facilities to firms and individuals for new vehicles also became scarce, just as many banks abandoned the new car finance scheme they introduced some years ago.

Investigation also showed that tokunbo vehicles were still enjoying high patronage and their dealers were being encouraged to increase their orders after the increase in age limit for used vehicles was announced last November.

For instance, from Thursday’s shipping position, 1,300 new vehicles were listed for delivery at the Lagos ports, whereas 4,040 used vehicles were either already delivered or being awaited.

This trend had been observed in the shipping position in the last two months.

Some old and new cars are also being brought into the country, albeit illegally, through many land routes and sea ports of neighbouring countries.