While Africa’s automotive market contains great opportunities, numerous international automotive firms face challenges when doing business on the continent. A key reason is the very significant differences in the business environments in Africa, vis-à-vis those in other global markets.
africon recently completed a project on the Nigeria automotive industry, commissioned by a multilateral organization. A critical question that emerged was the age of vehicles in Nigeria. As many large component producers do not provide coverage for cars beyond a certain age, this metric is a crucial market determinant for many international companies. With an average age of 16 years, a large portion of the Nigerian vehicle fleet is “too old.” This highlights the need for holistic data on African markets to sufficiently understand market potentials.
After putting these market forces into consideration, africon provided the client with a comprehensive overview of the market and a list of potential opportunities locally.
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