Mixed fortunes for Nigerian vehicle dealers as global sales figures soar

Despite a global sales record indicating that first half of 2016 was the best ever for some organisations, Nigerian vehicle dealers have continued to groan under sales drop owning to government policies and economic turbulence.

Infiniti said it finished the first half of 2016 with a new sales record, which marks the organisation’s best June ever, thanks to key markets including Canada, Mexico, Latin America, Western Europe, China and Australia.

Kia Motors also posts 11.4 per cent rise in June global sales and achieved best-ever first half sales, the organisation said.

Infiniti sold more than 110,200 vehicles, recording an increase of 7 per cent over the same period last year.

In the month of June alone, more than 19,300 vehicles were sold, up 15 per cent versus June 2015, and in the second quarter of the year (April-June), Infiniti set a new record with almost 53,000 vehicles sold representing an increase of 4 per cent.

Kia’s global sales reach 268,886 units in June for 11.4 per cent year-on-year growth, while it achieved best-ever first half global sales of 1,470,822 units.

Automaker in Nigeria lamented that upshot of economy downturn and the Central Bank of Nigeria (CBN) forex policy stalled growth of the sector.

In fact, the down impacts of government policies have been massive since Nigeria only import vehicle, Chief Executive Officer of Admiralty Motors, Maryann Chukwueke, told The Guardian.

With the development, Chukwueke projected that 2016 may remain very difficult because automotive dealers can’t import with the exchange rate.

Managing Director, Volkswagen of Nigeria and Chairman, Nigerian Automotive Manufacturers Association (NAMA) said meaningful change could only be witnessed if the exchange rate becomes very flexible.

According to him, the CBN must show commitment in the foreign exchange market that will bolster security in production and allow stakeholders to make necessary plans.