Market News

There are indications that car dealers operating in the country are strongly considering delving into electric vehicles amid falling demand for fossil fuel-powered cars, The PUNCH reports.

The National President of the Association of Motor Dealers of Nigeria, Mr Ajibola Adedoyin, disclosed this in a telephone conversation with our correspondent on Sunday. Adedoyin explained that the group plans to patronise made-in-Nigeria vehicles as well as electric vehicles.

“We are now trying to promote our own made-in-Nigeria and electric cars, and the gas-propelled cars. So, there are a lot in that sector, and we are thinking of going into that sector as dealers now. That is, entering the gas- and electric-propelled cars instead of the normal car that we are used to,” he stated.

Adedoyin, while admitting that the business has been stable for some time due to the stability of the exchange rate, said demand had been very low.

“The demand has dropped. The demand dropped in the sense that people now have to look for how to manage what they have in terms of refurbishing and trying to make do with what they have,” he said.

He admitted that because electric cars have not been widely adopted in Nigeria, there are still one or two challenges associated with them. Adedoyin stressed that electric cars are the next phase of transportation in Nigeria.

“But, you know, because it has not been well used before, or well put into practice here before, there are still one or two areas where people are looking at its disadvantages. But, by and large, it is what can be promoted, because that might be the new face of transportation in the very near years to come,” he said.

Meanwhile, Adedoyin added that the recent move by the Nigeria Customs Service to grant safe passage to personal vehicles temporarily imported or transiting through Nigeria by international travellers may not have much impact on the sector.

On Thursday, The PUNCH reported that the NCS said it was commencing procedures for granting safe passage to personal vehicles temporarily imported or transiting through Nigeria by international travellers.

Commenting on the development, Adedoyin said, “From the general look of things, there’s nothing much about that because maybe they are trying to open up to other countries to come in and do business.

“But how many people would want to do that? So I think mostly it is those that are within the neighbouring countries that will try to do that. You cannot say you are coming from the United States of America and you want to ship your car down so that you can come and use it for 90 days.”

Also speaking, a car dealer at Berger Car Market, Mr Chinonso Amariwu, admitted that there is a drop in car demand.

“It’s true, the demand for fossil cars has dropped, and the demand for electric cars has increased, so we are planning to go into that. The only challenge with electric cars is the mechanical side of it, and when it gets old, the battery will start having issues, but we will work around it,” Amariwu said.