Nigeria’s Auto Policy jacks up vehicle cost by 20%

Vehicle sales in Nigeria are set for a bad second half of 2015, as the tall effect of the National Automotive Policy takes hold.

According to an article from the Punch, Automobile dealers in Nigeria are bracing for a dip in vehicle sales for the rest of the year as indications have emerged that many of them may not meet their targets for 2015, no thanks to an increase of about 20 per cent in the prices of vehicles.

Although about 26 firms have signified intention to set up auto assembly plants in the country, with some already in operation, the prices of brand new vehicles have yet to come down as promised by the Federal Government when it imposed a 70 per cent tariff on imported cars in September 2013.

The article in fact reveal that cost of motor vehicles have actually gone up since the full implementation of the policy.

Here are some examples of how car prices have hit the roof

• Kia Picanto manual transmission, which cost N1.96m in January this year, is now being sold for N2.39m.
• A price list for Toyota brand of vehicles obtained by our correspondent on Wednesday showed that the Yaris, previously offered for between N3.2m and N3.48m, was now being sold for between N4.5m and N4.8m.
• The price of Corrolla 1.8 GLi, which went for N4.67m in the early part of the year, has been increased to N5.74m. The prices of a new Corolla 1.8L fabric and leather seat were given as N7.2m and N8.3m, respectively.
• The price of a Toyota Land Cruiser Prado VX, which before now was N15m, has risen to N18m.
• The new prices of Honda vehicles indicate that the City is now being sold for between N4.695m and N5.095m; the Accord is offered for N9m to N10.25m; while the Pilot is pegged at N12.5m.
• Another volume-driven brand is Hyndai. A copy of the price list obtained on Wednesday showed that the Accent was being offered for between N3.495m and N4.195m; the Elantra has a price tag of N4.395m to N4.795m; while the Sonata commands N5.195m to N6.395m.

It is left to be seen of the new APC Government will reverse this policy considering its populist ideology and willingness to spread the wealth.