Automotive Report Nigeria
- ID: 2101560
- July 2016
- Region: Nigeria
- 12 Pages
- The Economist Intelligence Unit
The local car market is large by Sub-Saharan African standards but tiny compared to markets of similar size (over 180m population) outside the continent. But new car sales, at less than 20,000 last year, fail to reflect actual market activity, since up to 300,000 used vehicles are brought into the country each year, many of them illegally.
Nigeria has one of the fastest rates of population growth in the world, expected to average 2.6% annually over the 2016-20 forecast period. The UN projects it to be the world's third most populous country by 2050, with the population more than doubling from its current level. Population growth will spur GDP growth and car sales over the longer term, but currently incomes are being constrained by falling oil prices. This has affected the currency and the trade account, which swung into deficit in the first quarter.
Car sales more than halved in 2015, falling to levels not seen since 2007-08. We expect sales to stabilise at much lower levels this year and next and to recover only gradually for the remainder of our five-year forecast period.
Industry List: Automotive, Automotive, Commercial and other vehicles, Automotive, Fuel sources, Automotive, Passenger vehicles
Industry Codes (NAIC): 336
Industry Codes (SIC): 37