In 2015 investment in the automobile industry in Nigeria was at an all time high as more than 12 automobile manufacturing plants including cars, bikes, tricycles, and trucks began production in Nigeria. With the rise of local automobile manufacturing industry, investors, auto financing and favorable government policies 2016 promises to be an interesting year for Nigeria's automobile industry. It is estimated that the revenue generated from this sector will produce 25% of the national GDP in the first quarter of 2016.
Vehicle ownership increased in 2015 with the availability of locally manufactured cars, increase in the availability and sale of Nigerian used cars and access to car loans. Use of personal cars also increased. According to a report by the Federal Road Safety Corps there was no significant increase in the number of commercial buses registration in the first and second quarter of 2015 when compared to the third and last quarter of 2014 while registration for new cars increased by 15%.
E-car technology will be taken into consideration more in 2016. More people will embrace hybrid cars because of their low fuel consumption and reduced exhaust emission and production of these cars will increase by 4.6% by 2020. Demand for cars with other simple technologies such as GPS, remote sensor locks, car tracking devices, keyless ignition will increase.
E car market penetration will also increase in 2015. A research paper by Carmudi Nigeria showed that 83% of Nigerians start their search for cars online before purchase. The research also stated that the online car market in Nigeria is driven by internet growth and mobile penetration. 2016 promises to surpass the 300 million searches online for new and used cars in Nigeria.
A brand research in 2015 showed that Volkswagen may have greater potential than its closest competitors in Nigeria. Hyundai market shares will also continue to increase in 2016 followed by Toyota, General motors’ group and German automakers.