Challenges and opportunities in Nigerian auto market

The Nigerian auto industry is currently looking very positive.

The Nigerian consumer today under­stands the disadvantages of buying old vehicles (locally known as ‘Tokunbo’ ve­hicles) and is keen to invest in new vehicles. Although the lack of auto retail financ­ing in the country remains a major hurdle, we hope that as the banking industry matures, financing will be easier and will lead to fur­ther growth in the industry

Major distribution com­panies have embarked on expansion plans and are looking at changing or ex­panding their fleets. Sev­eral state governments are considering mass transit buses, waste management vehicles and car ownership schemes. With new infra­structure projects kicking in, construction companies are looking at tipper trucks, concrete mixers and other application vehicles.

All these factors are heat­ing up the commercial ve­hicles industry, which is now witnessing major com­petition. The factors that will finally decide the market leader are product quality and level of after sales ser­vice offered by the brand franchisee. The major chal­lenges faced by customers today are controlling costs of maintenance, reducing downtime of vehicles, quick responses to critical require­ments and accessibility to service facilities; this, auto companies have to handle to win the hearts of Nigerian customers.

Achievements of Tata Africa Services (Nigeria)

Since sales commenced in 2008, the company has been growing exponentially and has established itself as a dominant player. We have sold around 2,000 commer­cial vehicles so far, and are growing at a rate of around 100 percent year on year.

We are patronised by most of the major compa­nies in Nigeria and have supplied and successively supported mass transit buses and garbage com­pactors to Lagos state. We have sold around 700 units of passenger cars in the country since inception and have undertaken sev­eral initiatives to improve and expand business to gain a respectable market share.

Challenges of Tata African Services since inception

The biggest challenge is that the local price of diesel is almost double that of petrol, which impacts the demand for our Pick-Up and small diesel commer­cial vehicles. However, the growth drivers for business have been light vehicles, medium and heavy trucks, tippers, special application vehicles and mass transit bus segment. We have been able to create a sustainable pan-Nigeria service network that will be expanded further in the coming years. And we have invested in creating a successful Tata brand image in Nigeria.

Tata’s future popular models in the country

Nigeria’s pick-up market segment is growing rapidly and a petrol version of the 4x4 Pick-up would be popular and help us increase volumes in passenger cars, our prod­uct image is limited. Cus­tomers prefer petrol engines and automatic transmission; therefore we are able to mar­ket only the Indigo models. We are currently addressing only 10-15 percent of the total car market, but we hope to improve this by introducing the new models such as the Tata Manza.

http://www.businessdayonline.com/NG/index.php/travel-a-leisure/37821-tata-will-be-successful-in-nigeria-regional-director

we don't want tata in nigeria. we already have innoson, and we want other nigerian car companies to copy innoson and start local production of autos as well
tata and co should stay away please

ROFLMAO!!! Tata wey dey struggle for India, na im dem wan bring Naija market abi?? dem don solve the fire-catching problem at least? ROFLMAO!!!

They are already in Nigeria ( lagos precisely ) and cornering the market while innossun is there in the east. The main market is in lagos and Abuja so i just pity other Nigerian companies that are not seeing this. Worst of it, this tata Nigeria might just be still fully owned by these India's without any stake by Nigerians in it.

I don't blame them though, it is our useless leaders that will allow another upcoming car company from a fellow developing country to come do business in our country when we are suppose to promote and support our own indigenous companies.