THERES A HUGE INVESTMENT OPPORTUNITY IN SPARE PARTS BUSINESS IN NIGERIA, WITH AN ESTIMATE OF OVER 11.5 MILLION CARS ON NIGERIAN ROADS THERES CONSTANT NEED FOR VEHICLE PARTS AND ACCESSORIES.
NIGERIA IS GOING TO BE AFRICA`S NEST AUTOMOTIVE HUB WITH THE RATIO OF USED CARS TO NEW CARS SALES AT 75:25, AND FOR EVERY NEW CAR THERE ARE 131 USED CARS ON NIGERIA`S ROADS. THE TIME TO INVEST IN THIS SECTOR IS NOW.
2. NIGERIA HAS THE POTENTIAL TO BE THE FASTEST GROWING LARGE
AFRICAN ECONOMY, WITH A PROJECTED ANNUAL GDP GROWTH RATE OF
4.2% IN THE PERIOD 2016-2050. THIS WILL PUSH IT UP THE GDP
RANKINGS TO BECOME THE 14TH LARGEST ECONOMY IN THE WORLD BY
2050, ACCORDING TO IMF AND PWC ESTIMATES.
THE POPULATION, CURRENTLY AROUND 200 MILLION, IS EXPECTED TO
DOUBLE OVER THE NEXT 30 YEARS, AT A POPULATION GROWTH RATE
AVERAGING AROUND 2.3% A YEAR. NIGERIA’S GROWING ECONOMY ALSO
MEANS THAT THE MIDDLE-INCOME, MIDDLE CLASS SECTOR IS SET TO
EXPAND BEYOND 40 MILLION, AND CONSUMERS WILL INCREASINGLY
WANT THEIR OWN VEHICLES INCREASING THE DEMAND FOR
AUTOMOTIVE MAINTENANCE AND REPAIR SERVICES. BMI PROJECTS THAT
NEW VEHICLE SALES WILL GROW 2.8% IN NIGERIA IN 2018.
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3. NEW CAR ASSEMBLY IS STILL
RELATIVELY SMALL, ACCOUNTING
FOR 15% OF CAR SALES IN 2015,
BUT WITH GOVERNMENT POLICY
TO PROMOTE DOMESTIC
ASSEMBLY, AND WITH LICENSES
BEING GRANTED, THE TRADE
SHOULD SOON START TO
EXPAND RAPIDLY, MEANING
PARTS WILL BE NEEDED.
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4. CURRENTLY, AROUND 35 COMPANIES
HAVE BEEN GRANTED LICENSES TO
ASSEMBLE VEHICLES. WITH THE
COMMITMENT TO DEVELOP THE
DOMESTIC CAR PRODUCTION MARKET,
THE LONG-TERM FORECAST IS THAT
70% OF NEW CARS SOLD WILL BE
MANUFACTURED OR ASSEMBLED IN
NIGERIA BY 2050.
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5. NIGERIA IS GOING TO BE AFRICA’S NEXT AUTOMOTIVE HUB, RECKONS
PWC. ITS RECENT ANALYSIS SAYS THE RATIO OF USED CAR TO NEW
CAR SALES IS 75:25, AND FOR EVERY NEW CAR THERE ARE 131 USED
CARS ON NIGERIA’S ROADS.
THERE WERE AN ESTIMATED 11.5 MILLION VEHICLES ON NIGERIA’S
ROADS AT THE START OF 2017, ACCORDING TO THE NATIONAL
BUREAU OF STATISTICS. OF THESE, 44.5% ARE PRIVATELY OWNED,
AND 53.8% ARE COMMERCIAL.
BUT THE AGE OF THE VEHICLES MEANS THERE IS A CONSTANT NEED
FOR VEHICLE PARTS AND ACCESSORIES. OVER 60% OF CARS ON
NIGERIA’S ROADS ARE MORE THAN 12 YEARS OLD, WHILE ONLY 11%
ARE UNDER FIVE YEARS OLD.
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6. THE SIZE OF THE IMPORTED
VEHICLE MARKET IN NIGERIA IS
CURRENTLY ESTIMATED AT
NAIRA 1.2 TRILLION (APPROX.
$3.3 BILLION). AROUND 70% OF
THIS IS SECOND HAND
VEHICLES, ALSO KNOWN AS
TOKUNBO, AND WITH A NEW
CAR POLICY IMPOSING A 35%
IMPORT TARIFF, THE USED CAR
MARKET IS THRIVING.
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7. WITH SUCH A HIGH PROPORTION OF
IMPORTED USED CARS, IT IS
ESTIMATED THAT:
5% OF (TOKUNBO) CARS HAVE
EITHER BEEN MODIFIED FROM A
RIGHT-WHEEL STEERING TO A LEFT-
WHEEL STEERING;
OVER 25% OF CARS SOLD AS
(TOKUNBO) HAVE BEEN UPGRADED
FROM A MANUAL TRANSMISSION TO
AN AUTOMATIC TRANSMISSION.
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8. AROUND 60% OF USED CAR SALES TAKE PLACE IN LAGOS, BUT OTHER
CITIES WITH A NOTABLE USED CAR TRADE INCLUDE KANO, KADUNA,
ABUJA, AND PORT HARCOURT.
DON’T OVERLOOK TWO-WHEELED VEHICLES, EITHER. NIGERIA’S
NATIONAL MOTORCYCLE AND TRICYCLE RIDERS ASSOCIATION HAD 8
MILLION REGISTERED (OKADA) COMMERCIAL MOTORCYCLE RIDERS AS
MEMBERS IN 2014.
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10. LADIPO MARKET ALSO KNOWN AS LADIPO AUTO SPARE PARTS MARKET IS A
MARKET LOCATED IN MUSHIN LOCAL GOVERNMENT AREA OF LAGOS STATE. THE
MARKET WHICH IS CONSIDERED THE BIGGEST AUTO SPARE PARTS MARKET IN
LAGOS IS OPENED ON A DAILY BASIS EXCEPT ON SUNDAYS.
NEW LIFE MOTOR SPARE PART MARKET, POWA PLAZA, IKEJA
ALAOJI MOTOR PARTS MARKET ABA, ABIA STATE.
ALAOJI MOTOR SPARE PARTS MARKET
UWELU MOTOR SPARE PARTS MARKET
WHY NOT INVEST NOW IN AUTOMOTIVE (SPARE-PARTS) BUSINESS IN NIGERIA
NOW!!!
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