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Tuesday, 26 May 2015

Emerging markets’ share of global automotive sales will rise to 60% by 2020 - Carmudi.com

...83% of Nigerian car buyers turning online when researching for cars

Emerging markets’ share of global sales will rise from 50% in 2012 to 60% by 2020, while their share of global profits is also set to rise by 10%; a research contained in the first ever Nigerian Automotive Whitepaper launched by Carmudi.com - Nigeria’s fastest growing online car classified, has revealed.

In Automotive Whitepaper, Carmudi examined the current and future state of the automotive industry in Nigeria and other Emerging Markets.

Carmudi’s report on ‘The Booming Automotive Industry in Emerging Markets’ provides a detailed look into the global state of automotive sales and how car purchasing behaviors have changed due to the drastic increase in internet and mobile penetration, rising GDP, and the emergence of a middle class. The findings in this report are the results of Carmudi quantitative surveys conducted online with both car buyers and car dealers, and in-depth interviews with industry influencers throughout Nigeria.

Christian Keller,
Managing Director of Carmudi Nigeria
According to Christian Keller, Managing Director of Carmudi Nigeria, the firm decision to embark on this timely research is to enable stakeholders to provide workable data for the automobile indsutry and feed car sellers and buyers what needed information on how to transact online.

Mohammed Iyamu, Head of Operations at Carmudi Nigeria, said the report will presented to the National Automobile Council as well as all the manufacturing companies and head of automobile organizations. He noted as the emerging market grow, car buyers and sellers internet penetration will increased, sighting the report of the firm search as evidence.

For full details of the report, check after the cut...

"Today, lot of transactions are done online. Right now we are moving into partnership with financial institutions where people can buy cars and pay installmentally because we realise that is one of the major challenge a lot of people are facing. Some people want to buy a car but they can't afford outright payment due to the economic situation", he said.

The State of Global Car Sales

Global automotive sales for 2015 are expected to reach close to $89M, a 2.4% growth from 2014. When it comes to new cars, purchase intent is strongest in Asia, where 65% of respondents say they will buy new cars in the next two years, compared with 7% who plan to buy used cars.

Growth of Auto E-Commerce

Globally, auto E-Commerce has grown at such a staggering rate that now as many as 80% of new car customers and almost 100% of used car customers begin their car shopping experience online. With internet and mobile penetration significantly growing in emerging markets, the rate of moving the car shopping experience online is beginning to mirror that of Western Markets. In Nigeria, the biggest source of the new middle class in Africa, 83% of car buyers report using the Internet to conduct research on a car before making a purchase.

Changes in Nigeria Car Sales

The Carmudi study found that 30% of car dealers in Nigeria reported an increase in car sales over the past twelve months due to the changing economic climate, while 50% of car dealers surveyed reported a decrease. Nigeria's auto industry remains relatively strong, but critical policy changes, like the National Automotive Industry Development Plan, have the potential to change the entire industry.

The Shift to Online

83% of Nigerian car buyers reported turning to the internet, blogs, forums, and social media when researching cars. The majority of Car Dealers responded that up to 80% of their customers turn to the internet and social media for auto research. The responses also proved that offline media, including newspaper classifieds and auto expos (under 10%), are declining as a source for buyers. Nigerian car dealers are also getting more and more digital when advertising their listings. Around 80% of car dealers are now primarily focused on advertising their car listings online.

William Anumudu, CEO of Globe Motors said, “Currently, the number of people turning to the internet to for car purchases been on the increase. A lot of people use the internet to search for information, products or services. Any business that wants to excel must go digital. This is due to the fact that Nigerians like to be associate with new trends, the internet is accessibility to the internet anywhere and the fact that information is at their fingertips. Since people are embracing the internet all businesses online will profit.

The Future of Car Sales in Nigeria

Nigeria has been heavily dependent on auto imports, which account for the largest share of the country’s foreign reserves each year. New vehicle assembly plants are expected, and the number of imported cars has already declined significantly - from 11,563 in January to 7,400 units in February. Last month’s historic election of Muhammadu Buhari has generated uncertainty surrounding the autos sector. Although the party is pro-business, some industry stakeholders disagree with elements of the Autos policy, such as second-hand dealers who will lose out from the 70% tax on imports, or who would like to see full implementation of the policy deferred. Buhari could choose to reverse all or some sections of the Automotive policy to secure more support with these stakeholders.

To see the original detail click: http://www.carmudi.com.ng/research/ 

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