•‘Car price increased by 15% due to hike in vehicle duties’
General Manager, CFAO Motors, Aissatou Diouf, yesterday, called for change in the financial law passed in 2020 to encourage local assembly of cars in the country.
In February 2020, Nigeria enacted the Finance Act, 2019, which is a compilation of fiscal laws for individuals and entities doing business in the country.
Diouf also said a 40 per cent hike in vehicle duties pushed the price of cars between 15 and 20 per cent in the market.
She spoke during announcement of Cars45 and Jiji’s partnership with CFAO Suzuki, in Victoria Island, Lagos.
The collaboration aims to transform car buying and selling experience for Nigerian consumers, offering convenience and access to a wider range of top-quality vehicles.
CFAO Suzuki will gain exclusive opportunity to advertise its range of cars on Jiji’s platform. On the other hand, Cars45’s network of retail centres across Nigeria will serve as authorised inspection and verification hubs for Suzuki cars, ensuring buyers have peace of mind.
Speaking with The Guardian, Diouf said: “We have increased the price of cars between 15 and 20 per cent. We hope that in the next two or three months foreign exchange (forex) will be more stabilised and lower. But we are observing before we implement increase.
“The government didn’t have a choice, economy-wise, but to stabilise forex and reduce the gap between what was in CBN and the parallel market. We expect stability in three months.”
Speaking on the partnership, she said: “According to the figures we have, the Nigerian market, in terms of new cars, is about 12,000 to 13,000 yearly but the used cars market is in an average of 500,000 cars per year. The culture of used cars is already here and we cannot pretend that we can just come and change it. But our goal is to be part of the change; change people’s mentality to buy more new cars, which will give them comfort.”
She added: “Through this partnership, we are giving a discount of five per cent to all buyers on the platform, a year of free service, insurance and registration.”
Asked about local assembly, she said: “Since the last financial law of 2020, a lot of things were changed, and doing local assembly is not an advantage, for now, until government changes the policy; those doing local assembly are doing a lot of mixing to meet up.”
On his part, Chief Operating Officer of Cars45, Maxim Makarchuk, said: “This partnership with CFAO Suzuki is a natural progression in our journey to offer unique opportunities and choices to Nigerian car users.”
“Jiji was created in 2014 and in our efforts to digitalise the e-commerce market, we have become the go-to classifieds for professional car sellers of different sizes, starting from small brokers, and ending with big 3S dealers, providing them with a platform to sell their vehicles.
“Today, over 10 million Nigerians visit our platforms every month, and we are responsible for ensuring they have a diverse and broad range of choices.
“In order to maximise value creation for our customers, we reached a win-win partnership with our long-term partner CFAO Suzuki. Through this collaboration, we can offer our private buyers a wide range of top-quality vehicles. Whether they are looking for affordability or specific features, our expanded inventory will cater to their diverse needs and preferences.
“Considering the recent gas price increase, having cost-efficient cars like Suzuki S-presso or Suzuki Alto is more critical now than ever. By partnering with CFAO Suzuki, we can gain a competitive edge in the market by tailoring our offer. Our collaboration enables us to offer both affordability and a reliable and reputable brand that instils trust and confidence in our customers.
“This partnership is important not only for our companies but also for the Nigerian automotive industry as a whole. By combining our expertise, technology, resources, and reach, we are leading the growth and development of the industry. Together, we are setting an example of what can be achieved through strategic partnerships and collective innovation.
