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africon conducts largest IAM automotive study on the Nigerian market

africon conducted a major Nigeria research project for a German supplier of IAM automotive engine parts. The study – one of the most in-depth africon studies in Nigeria so far – evaluated the entire value chain of the automotive industry, the diesel generator business, the market for agricultural machinery as well as construction machinery in the country.

All areas suffer from a share of around 60-70% of fake parts in the aftermarket. Nevertheless, the numbers are huge: driven by mainly 12.5m motor vehicles and 400,000 diesel generators, the engine spare parts market in Nigeria is an industry of several hundred million dollars.

Slide of the month (SOTM) August. Vehicle inflows Nigeria

 

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With the upcoming interest in Nigeria of various OEM and after market companies, africon GmbH did a comprehensive study on the Nigerian automotive market with focus on OEM production but also on the local spare parts markets.

One of the key findings has been that the vehicle inflows to Nigeria have dropped significantly due to lack of FOREX but also due to implemented taxes for vehicles. Our recommendation for aftermarket companies:

1. Evaluate the informal markets in Nigeria very closely as “official” companies are hardly present
2. Find a way of taking influence directly in the market by contacts to local players
3. Educate the market on the benefit of buying genuine parts as fakes are dominant in Nigeria

For more information please do not hesitate to contact us on info@africon.de.

 

Slide of the month (SOTM) March. New vehicle sales in sub-Saharan Africa

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This month our slide shows the strong increase of new vehicles sales in sub-Saharan Africa. Over the past 9 years growth has been almost 70% which led Ford, Daimler, Peugeot and others to increase their presence in Africa. Strongest growth has been in Angola and Nigeria.

 

africon publishes study for 4th German-African economic forum in Dortmund

Spätestens seit der Jahrtausendwende befindet sich das Bild Afrikas, des vormaligen ‚Kontinents der Kriege und Katastrophen‘, in einem radikalen Wandel.

Haller Nutzfahrzeuge decides for XCOM Africa

The Company Haller Nutzfahrzeuge has chosen XCOM Africa GmbH as their strategic partner for a market entry into Africa. Target of both companies is to jointly enter the African market to participate fully of the market growth in the infrastructure sector. Haller Nutzfahrzeuge is one of the leading supplier of trucks and busses in Southern Germany. XCOM Africa consults mid sized companies on their market entry into Africa with focus on Nigeria, Ghana, Kenya and Rwanda.

Whitepaper: Automotive in Africa – Focus Nigeria

Challenges for western companies are to find the right way to make use of these opportunities and also to be on time: In a few years the Nigerian automotive sector is likely to be split between those who invested early enough, which will make it difficult for foreign newcomers to gain foothold.

Download the full report