Nigeria just rolled out an auto policy that has gotten everyone more confused than ever. Since we are looking to outperform the South Africans and become the true Giant of Africa, I thought we take a peek at their car sales data for this year
It appears the car industry in undergoing a contraction this year. In fact, a quote from an article that appeared in CNBC Africa back in April explains what is going on.
“Customers are always out there to look for pricing value, hence that shift toward used cars. Also, the vehicle inflation price in used cars remains negative, which makes it attractive for customers to buy used cars at the moment.”
Bottom line is that customers will always sought for the cheaper option regardless of whatever policies the government puts in place. At the end of the day the purchasing power of consumers should be the focal point of any policy the government decides to put in place. You can get more stats on South Africa’s auto industry.