Recently released market study: Nigeria Autos Report Q2 2011

May 11, 2011 - PRLog -- New vehicle imports in Nigeria fell by 24% year-on-year (y-o-y), to 32,409 units, in January-November 2010, according to Mohan Sethi, general manager at Nigerian importer Dana Motors. In December 2010, Nigerian importers also reported a sharp decline in vehicle imports in the first 11 months of the year. This was the result of consumer credit running out after the banking crisis of 2009 failed to see any recovery throughout 2010. Vehicle sales in Nigeria are a substitute for private purchasing power, which is usually used as an economic indicator but is not available in Nigeria. Port figures showed that new vehicle imports fell to 32,409 units between January and November, which is a drop of 24% y-o-y.

However, government policies to boost exports have received mixed reviews. For example, the Nigerian government is set to review its policy of increasing the maximum age limit for imported second-hand vehicles from 10 to 15 years, even though dealers report only a marginal increase in sales. The age limit was raised in January. The Punch newspaper reports that used imports have risen just 30% in the three months since, compared with the much more dramatic influx that had been expected.

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Full Report Details at
- http://www.fastmr.com/prod/152716_nigeria_autos_report_q2...
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Although new vehicle manufacturers and dealers have criticised the new policy, saying it is to the detriment of the industry's development, used car dealers say there is little difference as cars over the age limit were making it through customs even before the change in regulations. For makers of new cars, and the company's main producer, Peugeot Automobile Nigeria (PAN) in particular, the policy appears to be contradictory to the assistance that had been promised for the sector.

However, the Kaduna state government has implemented a 'Buy Made in Nigeria' policy in January, which will see all government vehicles sourced from PAN. The new made in Nigeria policy is in line with the federal government's nationwide plan to encourage the use of domestically produced goods. PAN had been promised the patronage of the previous administration in return for investment after privatisation, but the government then slapped a ban on car purchases for two years in 2009.

The government is also looking at bringing more assembly plants, as vehicle production in the country has spiralled, falling over 30% year-on-year (y-o-y) in both 2008 and 2009. However, he highlighted Nigeria's electricity supply as the 'albatross' of its industrial sector.

Report Table of Contents:

SWOT Analysis
- Nigeria Auto Industry SWOT
- Political SWOT Analysis
- Economic SWOT Analysis
- Business Environment SWOT Analysis
Regional Overview
Business Environment Ratings
- Table: Middle East And Africa Business Environment Ratings
Industry Forecast Scenario
- Table: Nigeria Auto - Production
- Table: Nigeria Auto - Sales
- Trade
- Table: Nigeria Auto - Imports
Macroeconomic Forecast Scenario
- Table: Nigeria - Economic Activity
Competitive Landscape
- Post-Privatisation Government Policy
Company Monitor SUV Demand Drives Chevrolet's Regional Growth
Company Profiles
- Peugeot Automobile Nigeria (PAN)
- Toyota Nigeria (TNL)
Country Snapshot: Nigeria Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Consumer Expenditure, 2000-2012 (US$)
BMI Methodology
- How We Generate Our Forecasting Model
- Sources

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.